News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.15% US 500: -0.20% France 40: -0.21% FTSE 100: -0.22% Germany 30: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7uwhlllhxH
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/N4yw7phA6q
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 92.96%, while traders in NZD/USD are at opposite extremes with 74.97%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/QAczjZNmm1
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/vwEb1RZ0yr
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Gold: 0.06% Silver: -0.08% Oil - US Crude: -2.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Xbrgfhykit
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇨🇭CHF: 0.21% 🇦🇺AUD: -0.02% 🇨🇦CAD: -0.04% 🇳🇿NZD: -0.06% 🇬🇧GBP: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GzzlaYGofm
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.03% Wall Street: -0.01% France 40: -0.01% Germany 30: -0.03% US 500: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/sHHu6wUEEn
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/qbgOyJ7gwT
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇨🇭CHF: 0.14% 🇦🇺AUD: -0.05% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.13% 🇬🇧GBP: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cSsg7l8b4x
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.05% Wall Street: 0.01% US 500: 0.01% France 40: -0.02% FTSE 100: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CyoJBdYbGT
Using Leverage Appropriately

Using Leverage Appropriately

2011-02-11 13:19:00
Thomas Long, Course Instructor
Share:

I recently received an email from a new trader who found himself in a losing trade and didn’t know what to do. He had an account with a balance of $2000 and sold 20 (10K) lots of a currency pair where the margin requirement for each lot was $75. The market had moved against him by about 20 pips and he wanted to know if I thought the market was going to come back. Before I had a chance to answer the email, the trader received a margin call and was automatically closed out of the position.

He was a little upset about losing $500 on just one trade and thought that maybe he wasn’t cut out for trading.

He also asked that if he sent me the details of the trade, would I offer comments on what went wrong. But without any more details I already had a good idea what his biggest mistake was.

He was using too much leverage, which may be the biggest mistake new traders make.

There is only one guarantee in the business of trading and that is if you trade, you will have losing trades. How you manage those losing trades will have as much to do with your success or failure as a trader as any other factor. We recommend risking no more than 5% of your account balance at any one time. So if trading with a 50 pip risk, this new trader should have only opened two 10K lots instead of 20 lots. Then his loss would have been $100 instead of $500 and he would still in a frame of mind to find another trade instead of wondering if trying to trade was a mistake. His mistake was in thinking about how much he could make when he should have been thinking about how much he could lose. This is the main difference between a new trader and a professional trader.

The DailyFX+ Trading Coursehas a complete lesson on Money Management and how to keep your risk manageable.

The login is the same used to access your live FXCM account. Access is free for all live clients. If you are not yet an FXCM client, email us here at instructor@dailyfx.com and we can set you up with temporary access so you can see the type of resources we offer our live account holders.

Leverage_body_78234d1297430086-trend-day-leverage-211.png, Using Leverage Appropriately

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES