Summary:This video will show you how to determine an appropriate trade size relative to your account size through effective leverage and the “risk management calculator”.We will use last week’s set up on the USDCHF and a new potential opportunity with the GBPJPY to illustrate these tools.
Head Trading Instructor Jeremy Wagner discusses:
*How to use the Donchian Channel Indicator to identify entry and exit points of a trade
*What is effective leverage and why it is important
*How to determine trade size on a developing trading opportunity with GBPJPY
If you are a newer trader to forex, follower the new to forex twitter feed which offers beginning trading tips through @DailyFXEDU twitter handle. The feed can also be found at the DailyFX Learn Forex page.
Best of luck trading!
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX Education
Follow me on Twitter at @JWagnerFXTrader.To be added to Jeremy’s e-mail distribution list, click HERE and enter in your email information.
New to the FX market? Save hours in figuring out what FOREX trading is all about.
Take this free 20 minute “New to FX” course presented by DailyFX Education. In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of leverage for your trading.
Register HERE to start your FOREX learning now!