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Thread: Leverage in aggressive and conservative trading

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    Rookie Silhouette's Avatar
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    Leverage in aggressive and conservative trading

    Leverage in aggressive and conservative trading




    in the first place, of course, it should be noted that policies are mechanical and automatic. an example of a mechanical-related trading strategy would be that the trader must have a decision about opening / closing the transaction, setting the take-profit and stop-loss according to the strategy. automated strategies are presented in the form of advisory (robot), they are without traders able to make transactions, but first they need to be set, or even likes to say adjust accordingly usually the automated strategy is already the default setting.

    it is also worth mentioning a semi-automated strategy. but the bottom line is that commercial counselors may indicate possible entry/ exit points in the market, or to help determine trends and support/ resistance levels, and traders can only decide to use recommendations from robots or not.

    the second factor in choosing a trading strategy, it is the time interval in which it is designed. trading strategies may be short-term, long-term (investment) or intraday. examples of intraday trading strategies may be designated scalping, trading pimples or news. long term strategies are usually trendy, although you can meet an aggressive long-term strategy, such as example trading strategies may trade on the martingale principle. long-term strategies require decent capital and time to generate income which, by the way, is not always great, but stable.


    aggresive and conservative trading intro


    and, nowadays there are two criterias when choosing a trading strategy that is so automated and how many time intervals to calculate. but there is another important criterion that is often decisive in choosing a trading strategy - is the potential level of risk. in other words, it is an aggressive strategy which promising big profits at high risk of losing most, if not all of the capital, or conservatives.

    conservative strategies because of low risk, negligible losses, truths and benefits are usually several times smaller than aggressive strategies. Examples of conservative trading strategies are those where there is a clear system of restriction losses, the priority being the preservation of capital, moderate gain. Examples of trading strategies with aggressive high-income trade pledges (even more than 100% per annum), a system of restrictions on loss are not thought, and often are nonexistent, designed for short-term periods, and intraday trading.

    despite the risk criteria, we identify then, in practice is the first factor in choosing a trading strategy. of course, everyone wants to make profits quickly and in bulk, but the choice of aggressive or conservative is personal, not everyone is willing to sit for hours in front of the monitor and make sure that all market players do not join, or to see how the profitable month is replaced as profitable.

    so do not round the conservative and stable trading system, chase for high profits, both to consider the pros and cons of each type, and choose the one that is more suitable for you. prioritize a new way, look at the criteria table for choosing a trading strategy.


    aggressive trading


    usually traders who like the high risk of trying to catch the price movement that happens this as early as possible to get the maximum profit. how to install stop-order 'buy' and 'sell' 10-15 points ahead of the news. stop-loss may not be installed, because with two transactions opposite to the same lot number will automatically occur hedging (in loss position) if one order is hit and the price movement reverses direction resulting in another order also active.

    the advantage of this way is the gain can be maximized if the movement is large enough and move in one same direction with our trades. otherwise if we place our trades in wrong direction, if there is a volatile movement / up and down, the possibility of loss is large enough. Also this way will be very detrimental if the brokers you use increase the spread when the occurrence of news.


    conservative trading


    known as safe trading. if you want to play it safe, you do not need to place any order just yet when the news happens but just pay attention to the market reaction. you can just enter the transaction after the direction of movement that occurred quite clearly. this can happen 10 minutes or even several hours after the news. the best time to enter a deal is when the 'wave 2' of the price movement is almost over and 'wave 3' will begin.

    indeed in this way the benefits achieved are not as aggressive as the transactions are taken at the earliest price level, but this is quite safe and the profits are still relatively large. if there are some important news happening in the near future, usually the first news reaction appears hesitant and the price tends to return to its original position. this is because market participants are waiting for the second news to take a position. this condition often traps aggressive traders. but if you use a conservative strategy, you can wait until the following news to ensure the direction of movement and transact when the price movement is certain.


    conclussions

    mostly, being so aggresive sometimes really stressful because we used a lot of our energy to focus with high concentration and this method not really suitable for some people who like doing things in safe way and relax. when there is a risk, there is also the reward, and of course there will be the effects too.


    otherwise, trading with conservative way is quite safe to do. in fact, i am sure that most people like do the trade with joy and relax without worrying about catching hundreds of pips at all times. just chill, forex market provides all the opportunities and there is no need for us to worry about being left behind.


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  2. #151
    Rookie layigold's Avatar
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    Leverage is what makes forex trading juicy to retail forex traders like you and I , without this leverage being offered by online forex brokers , people like you and I cannot move near forex trading . On the other hand , leverage is what makes forex trading risky . There would not have been too much risk in forex trading without a leverage , as a matter of fact , leverage is like a sword having two sides . If you choose bigger leverage , you tend to borrow more from the broker with the intention of having little amount of money controlling bigger volume of trades and this can really work against trader if the risks of trading are not well and properly managed

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  3. #152
    Rookie Silhouette's Avatar
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    Quote Originally Posted by altafch View Post
    investment not matter if we have small one still we can trade on it still we can trade with small lot size so with big capital we can use big lots, so its not issue, the main issue is our learning our learning process. its just possible if we have done good practice, if we have not done practice we can lose just. so capital not matter here for earning our experience matter it should be strong enough then we can earn well
    Investment is a nature purpose of this business so it can be different among traders to have. Of course it's not really matter because we're focusing our efforts to learn and build a trading system to help us analyze market and give us what we want to know about market through patterns, indicators, and anything we can use as trading ideas.

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