Author: Yokoyi

What is Risk to Reward Ratio in Forex? Risk to Reward (RR) ratio is a measure of how much your stop loss is going to be, versus how much profit you hope to make from a trade. Every time you enter into a trade, there is a 50% chance that you are going to lose.…

What Is Daily Loss Limit in Trading? A daiily loss limit is a mental decision not to lose a specific amount of money each day when you trade. It is not a process you can automate, so you have to have the discipline to stick to it and that is usually the difficult part. Your…

Take Profit: What Is It & Why Is It Important? A Take Profit (TP) is an order you give to your broker, to automatically close your trade when your profit reaches your specified amount. A Take Profit helps you to remove emotions like greed from your exit strategy, so that you don’t have to think…

What Is Timeframe In Forex? A timeframe in forex means the amount of time it takes for a new candle to form on the charts. A timeframe is like a time capsule containing historical price action, for the period which it took to form. Trading on the right timeframe helps you avoid fake entry/exit signals,…

Before you open a trade, you need to calculate the right lot size that matches your account balance & minimizes the risk of blowing your account. If you attempt to trade a lot size that is too big for your account balance, any losses you make will be very significant & your free margin will…

Definition of Stop Loss A Stop Loss (SL) is a market order you give to your forex broker to close your trade when the exchange rate of the currency pair you are trading, reaches your specified stop price. How Does Stop Loss Work in Forex? Stop Loss orders are triggered automatically once the price or…

What is Fiscal Policy? Fiscal policy is when a government tries to steer the economy in a desired direction by using tools such as taxation or adjusting government expenditure. When a government tries to speed up the economy it resorts to Expansionary Fiscal Policy & when it wants to slow down an overheating economy it…

Every forex broker is supposed to display their license & regulation information on their website. This is key & if you cannot find this information easily on their website, you may be dealing with a scam. At the bottom of a broker’s website, you should always find information on where the forex broker is regulated,…

NFP means Nonfarm Payroll and is a report released every month by the United States Bureau of Labor Statistics showing the Employment Situation in the United States. It is called Nonfarm Payroll because the report only addresses the number of new jobs created in Nonfarm sectors of the economy. The NFP report does not include…

Standard Accounts Standard Accounts are Spread-only Accounts that have a straightforward pricing structure as there are no commission payments. However, Standard Accounts have wider & less transparent spreads making you take longer to reach profit on a trade because you must overcome the spread first which shows as a negative balance when you enter a…