Risk Management

Risk and trade management is often one of the most overlooked aspects of trading and investing and potentially one of the most important. In this section we look at various aspects of risk and trade management in more detail and produce articles that should allow traders to improve their trading strategies and plans by a much better use of risk management techniques. Trade and risk management includes primarily what a trader does after entering a trade to maximise prospective profits and minimise potential losses. However, it can also be applied to decisions made before the trade is even executed, as to whether the trade is a good candidate to even enter. Read other articles in our free forex education.


How to avoid margin calls

When trading Forex and Contracts for Difference (CFDs) most brokers offer leverage trading or trading on margin. You can learn more about gearing, leverage and margin in our article and video here. Margin trading is used to allow for greater opportunities for larger profitable outcomes, if an individual does not have the necessary capital. Forex … Continued


“Defense”…The Key To Success in Fx Trading

You’ve heard the phrase “ Defense wins Championships”. Let me tell you why these three words can save your career as a FX trader.  Why become another statistic whose bad decisions cost them the passion of their life. The best and most successful traders adhere to these basics tenets: cut your losses, let your winners … Continued


Is Risk Management Really Important When Trading?

Yes, of course. Why wouldn’t it be? If you fail to respect risk, you will have a very short trading career. “Don’t focus on making money; focus on protecting what you have.” – Paul Tudor Jones. Paul Tudor Jones couldn’t have said it any better, as a trader risk management is key to any successful … Continued


Order Types

In this Master Academy educational article and video, we are concentrating on different types of orders that can be placed with brokers. We are going to look at FOUR differing types of Order. 1. Limit Order 2. Market Order 3. Stop Order Stop Exit Stop Entry 4. OCO Order 1. Limit Order An order to … Continued


Gearing, Leverage and Margin

In this video and article, we are looking at the concepts of Gearing, Leverage and Margin. Gearing, Leverage and Margin are interconnected concepts in trading. LEVERAGE (also known as Gearing) works by using an effective deposit, known as the MARGIN, to provide you with increased exposure to an asset. A fraction of the full value … Continued


Basic Terms

Below we introduce some initial basic terms from Risk Management. Hit Rate Hit Rate is a measure of the ratio of the number of winning (profitable) trades over a set period of time, divided by the total number of trades. Hit Rate = number of winning (profitable) trades / total number of trades Example: A … Continued


Traders: On Avoiding the 90-90-90 Scenario

You don’t want to be a part of THAT club… the 90% of retail traders who lose 90% of their money in 90 days. You can avoid it but you have to think differently than the crowd. First, realize that you are not in this business to trade; you are in it to make money. … Continued


There’s a New Robot in Town Or The Power of the “5” Pip Risk

It’s a new era. No more risking 30-50-75 pips to get into a swing or long term trade. Before CCC (Currencies, Coffee and Croissants) came along, it was unheard of to try and enter a swing trade or a long term trade with 5 pips of risk. People would have laughed at you…..they thought that was … Continued


Why EAs Are Out and ATs Are In…

There are many reasons traders are switching from EAs(Expert Advisors) to ATs (Automation Tools). The primary reason is that EAs cannot put things into context, which is why they had no chance of catching the recent volatile moves in the financial markets. Further, the lack of support is a big problem. EAs are generally just … Continued