In 5 steps on how to manage your risk in forex trading and how to protect against it

In 5 steps on how to manage your risk in forex trading and how to protect against it

how to manage your risk in forex trading
In 5 steps on how to manage your risk in forex trading and how to protect against it

How to manage your risk in forex trading, CFDs come with a lot of risks, but the trader can control them using risk management tools, and he should make sure that he is well acquainted with those tools from the educational resources of forex trading risk management tools, Today on our blog vtkat, we will talk about all the details related to this topic

Manage your risk in forex trading: What are the risks?

The risk of a trader losing more than the funds in his account.

This risk occurs because the price of CFDs is raised, which means that the trader needs to pay a small part of the value of his deal while trading forex in order to open it. So he may lose - or win - much more than his initial deposit.

To avoid this risk in forex trading, the trader can mitigate these risks and make profits by setting an automatic stop point, to determine the level at which he wishes to close his trade..

Read Also: What is the minimum risk when trading forex?

The risk of closing deals unexpectedly

This risk in forex trading occurs as a result of the trader needing a certain amount of money in his account to keep his trades open. This is called margin, and if his account balance does not cover the Forex margin requirements, his positions must be closed.

To avoid this risk, the trader should keep an eye on the operating balances that are always visible in the basic Forex trading system, or add more funds if necessary.

The risk of sudden losses or profits

This risk occurs because the forex markets can be volatile, moving very quickly and unexpectedly, for example, reacting to advertisements, news events, or your behavior as a trader.

To avoid this risk, stops must be identified, and the market movement can be followed accurately by setting a price or a distance alert.

The risk of getting an order to open or close a forex trade when the market reaches a certain level that is filled with a different level than the specified one

That risk occurs when the forex market goes a long way in an instant - or gaps - any order placed by the trader may be filled at a level worse than the level requested by the trader. This is called slippage.

To avoid this risk, you should use guaranteed stops to protect you against price slippage. It is free, or it can be purchased from any company for a small amount that is not paid unless after the downtime is turned on.

What is the leverage in forex trading?

It is a tool that allows the trader to gain a great knowledge of the financial forex market while the trader only attaches a small amount of his own capital. In this way, the leverage in forex trading amplifies the range for both profits and losses.

Read Also: Find out the effect of economic factors on forex trading

Is there a forex trading risk or financial risk when dealing with leverage?

Although the trader only puts a small amount of capital to open a position, his profit or loss depends on the full value of the position. Therefore, the amount he gains or loses may be large compared to his initial outlay. and this is one of risk management in forex trading.

Protect yourself as a trader from risk in forex trading

Here the trader must set a stop-loss order to automatically lose his position if the forex market moves against him. But since there is no guarantee of protection against slippage - so the trader can close his position at a worse level if there are gaps in the Forex market. as a forex risk warning.

learn how to mitigate forex risk and  don't miss out on your winnings

The trader must place a trailing stop-loss order when he opens his trade and it will move with his profit. If the market turns, his position will be closed at the new level of his trailing stop. So he can lock in profits without having to monitor his position and adjust his stops. and mitigation risk in forex trading.

Likewise, with regular stop-loss orders, trailing stops are not protected from slippage. and this is one of disadvantages of forex trading.

Stay informed of the market movement to find out types of risk in foreign exchange market

The trader must set price alerts to avoid risk in forex trading, and when the market reaches the price they set. Push alert notifications can also be set. This service can be set up on any forex trading platform. He will receive text and email alerts, and payment alerts will pop up on the trading platform for a computer, and your mobile phone.

Constant knowledge of profit and loss in forex risk management

A trader should keep an eye on his stock shot that is always visible in the forex trading platform, react quickly if the market moves against him, and take a trade almost immediately to protect his profit or reduce his loss and protect himself from risk in forex trading.

Trade with limited risk in forex trading

A trader does not need to risk more than he can afford when trading forex. first, ask yourself is currency trading worth the risk? The accounts of some platforms with limited risk can help protect him, ensuring that all his positions either have a guaranteed stop or in the Forex markets with limited forex risk.

Use built-in Forex trading risk protection

Whether a trader has a stop loss or not, if his account balance is cash balance his current profit/loss and does not cover his margin requirements, his trading platform may close his positions partially or completely. This is to help protect it from negative equity and risk in forex trading.

However, this risk protection is not automatic - it makes sense to keep enough funds in the trader's trading account to avoid the possibility of closing positions the trader prefers to remain open.


What is meant by risk in forex trading?

In forex trading, the word risk refers to the possibility that a trader's choices will not lead to the outcome that he or she expects. This risk in forex trading ​can take the form of a trade that doesn't work as well as the trader thought they would make, meaning that they earn less - or lose more - than they originally expected.

Forex trading risks come in a variety of forms. The most common form is the Forex market risk, which is a general risk that may lead to its trading not performing based on unfavorable price movements - which may be influenced by a combination of external factors such as general recessions, political unrest, etc.

Usually, a trader is willing to take a certain degree of forex trading risk in order to participate in the forex markets, and each trader hopes to make his or her trading profitable over time. The amount of trading risk a trader will face depends on his strategy, and the risk-reward ratio that he has set for himself.

It is therefore important to know how much capital a trader can afford to risk, whether on a per-trade basis or as a whole.

For more informatiom:

Foreign exchange risk, From Wikipedia, the free encyclopedia

How to manage RISK in FOREX trading

What is the minimum risk when trading forex?

What is the minimum risk when trading forex?

What is the minimum risk when trading forex?

What is the minimum risk when trading forex?

When talking about the minimum risk when trading forex we define risk management as a proprietary software application developed by specialized companies, which guarantees the trader to manage and reduce his risks in the context of forex trading, and helps him prevent the loss of his entire deposit. Below we will talk on vtkat blog about details this service continue reading.

What is trading forex risk management?

Forex risk management is a system that allows a trader to implement a set of rules and procedures to ensure that they can control against any negative impact of forex trading. This strategy requires proper planning from the start, as it is better for a forex trader to have a plan to manage his risks before he starts trading.

This solution is the perfect tool to improve a trader's self-discipline. As when entering data into the service, the trader will be able to immediately see the risks that he may be exposed to. In other words, it is by the trader's own will that he controls the trading process. In addition, the software monitors the work in online mode, which keeps the trader's investments safe.

Read Also: Find out the effect of economic factors on forex trading

Minimal risk when trading forex with risk management service

Forex trading always means trading on possibilities, which is why the trader should reduce the possibility of losing money by all possible means, and you are here on Fatakat blog in the right place where you can get the features and details of this service.

Before enabling this solution, a trader must have their own trading strategy, and clearly defined risks to be entered into the software.

Once this is done, the risk manager will independently monitor the indicated data, supervising the trader's work and making sure that he strictly follows the algorithm while trading forex.

What are the advantages of managing forex risks?

  • The service has the following features:
  • Risk management
  • Act according to a clearly defined plan;
  • Losses are kept to the trader to a minimum in case of inappropriate trading situations
  • It gives beginners the perfect opportunity to gain more time to gain forex experience with minimal losses.
  • A risk manager in forex trading is the go-to option for a trader, especially when the market situation is unstable.

What are the steps for managing forex risks?

Steps to use the risk management application

To do that:

Open the Services tab.

Then open Risk Management in the menu.

You will find an easy-to-use interface and easy to understand.

Note that all the algorithms of this solution are based on making real forex trades.

Advantages of applying risk management in the forex trading process

  • Tracks allowed withdrawals per day.
  • Controls losses in one trade.
  • When the situation starts to deteriorate, the algorithm will close the deal immediately.
  • The application controls the number of unprofitable trades per day.
  • A forex trader personally configures this before starting to trade: as soon as it reaches its set minimum, the device will be disabled, preventing further potential forex financial losses.
  • It calculates trades on certain risks allowed during trading forex.
  • The device disables immediately upon reaching a set of unfavorable conditions during forex trading.
  • You can put your trust in the risk manager, but he must be affiliated with a guaranteed company that aims to achieve positive results always and at all times, ensure the safety of its client's funds, and help them increase their profits in Forex trading.
  • This application aims to prevent traders from losing all their money immediately, as they control their emotions or rely on their lack of information. No matter how knowledgeable or experienced a forex trader is, keeping the money and making use of it requires maximum effort.

In the course of forex trading and gaining trading experience, a forex trader can adjust the following parameters, namely:

  1. Daily, weekly and monthly risk ratio
  2. The trader can perform the cash calculation and calculate the percentage of risk of forex trading.
  3. Control the daily, weekly and monthly maximum number of unprofitable trades.

What are the types of forex trading risks?

The risk manager is the key factor in the whole trading forex approach, so determination of the loss should be a mandatory requirement in forex trading, the trader needs to understand how much amount he is willing to lose which in turn will be the signal to stop trading.

Currency risk

It is those risks that are associated with the price fluctuations of currencies, which makes the purchase of foreign assets the most desirable or least expensive.

Interest Rate Risk

It is the risk related to the sudden increase or decrease in the interest rate, which has an effect on the fluctuations of the forex market. Changes in the interest rate affect the foreign exchange rate directly, as the level of spending and investment through the economy will rise or fall, depending on the direction of price change.

Liquidity Risk

The risk of not being able to buy or sell assets quickly enough to prevent a loss. Contrary to the well-known forex market that is highly liquid, there can be a period of illiquidity during forex trading, and it depends on the currency and government policies around the foreign exchange system.

Leverage Risk

It is the risk of magnifying losses when trading forex on margin. Because the spending initially is smaller than the trading value of foreign exchange, it is easy for a trader to forget how much capital they are putting at risk.

Even if a forex trader keeps a certain percentage of the loss in mind, and yet does not record it anywhere, it is possible that the forex trader will eventually miss the exact moment of reaching that number, and will continue to trade which may result in greater losses or even a loss The entire amount.

Read Also: Here are 7 reasons why you should invest in forex trading

For this reason, the trader has to enter these basic parameters into the application which in turn will keep the trading matters under control, the forex trading system should include clear rules, and by following them, the trader will be able to form own statistics and will gain trading forex experience.

The application can connect to an unlimited number of traders' accounts for free, mainly forex real and demo accounts. When the service is enabled, the trader should keep in mind that there should be no open forex trades.

Not losing money in forex trading is the important thing, which every trader in the forex market has to deal with. This is where the risk management program comes in. These automated deposit protection service programs work 24 hours a day, every day of the week without any delays or glitches, so they must be enabled before a person can start trading forex.

By taking advantage of these automated programs, the trader will get the opportunity to create his own trading strategy and not only keep his initial investment, but also increase it significantly. Therefore, it makes sense that the trader cooperates only with Forex brokers who guarantee control over the deposit of the trader's funds and its security.

For more information:

Foreign exchange risk,From Wikipedia, the free encyclopedia

Forex trading risk management

Find out the effect of economic factors on forex trading

Find out the effect of economic factors on forex trading

Find out the effect of economic factors on forex trading
Find out the effect of economic factors on forex trading

Did you know that the average daily turnover of the combined global stock markets is not even close to that of forex trading?

Also, measure your knowledge of the relationship between the stock market and the economy here in our blog vetkat.

The forex or foreign exchange market is the largest market in the world, with a daily turnover of about $5 trillion. Moreover, the forex market is one of the most traded in the world, which includes the participation of many currencies and many individuals.

The forex market is considered the most liquid asset market, and it is highly decentralized with many large players, including central banks, commercial companies, investment banks, and hedge funds involved in the trading.

What we will talk about today:

  • What does the forex market deal in?
  • Forex trading - a profitable form of investment!
  • Factors Influencing Forex Trading

What does the forex market deal in?

The forex market involves the conversion/exchange of currencies within a wide network of buyers and sellers at an agreed rate, which is also referred to as foreign exchange trading. The vast majority of currency conversions are made every day in the global market with the aim of making a profit.

Most of the trade in the forex market takes place between the currencies of the eight countries - the United States, Japan, the Eurozone, Switzerland, the United Kingdom, Canada, New Zealand, and Australia.

Read Also: Here are 7 reasons why you should invest in forex trading

Forex trading - a profitable form of investment!

Forex trading has quickly become a popular form of investment among modern investors, who consider it a reliable platform for making money. Let's go through some of the features of forex trading that make it an attractive form of investment:


Forex trading provides time flexibility to traders because it includes the exchange of global electronic currencies and operates 24 hours a day. The flexibility of time allows traders to enter or exit the market as they wish.


The forex market is known to have great liquidity, as many forex traders seek to make buying and selling deals at certain times. This allows them to complete all their transactions as quickly and easily as they desire, and also at a low transaction cost.

Low Risk

The risks associated with the forex market are relatively low as novice traders can invest a small amount of money to start forex trading. This prevents huge losses for novice investors who first want to examine the market.


Since the forex market is a decentralized market, no single institutional trader can control the exchange rates for an extended period of time. With no forex brokers in between, the market is affected by the economy itself, not by a single company or person.

Factors Influencing Forex Trading

Find out the effect of economic factors on forex trading 1
Find out the effect of economic factors on forex trading

Although forex trading has many and many advantages, before one gets involved in forex trading, one must be aware of the factors that influence the market movement.

Interest rates

The movement of exchange rates between countries of the world is affected in a way by the interest rates decided by global central banks, and this has a close relationship with Forex trading.

Usually, the promotion of high-interest rates in the value of a country's currency compared to other countries with low-interest rates, affects forex trading, as most foreign investors prefer to invest in the country that has higher interest rates with higher rates in order to achieve the best returns.

For example, if the value of the Australian dollar fell on the first move to cut interest rates for the Reserve Bank of Australia in June 2020. It is important to know that the bank has cut the current interest rate from 1.5 percent in May 2020 to 0.75 percent. You will find the drop of AUD/USD from ~0.73 USD in January 2020 to ~0.68 USD, this example is useful in learning forex trading.


The meaning of high inflation is that the cost of consumer goods is high in the country's economy, which causes foreign investors to not invest, which leads to a decrease in the demand for and value of that country's currency.

For example, after Australia announced better-than-expected inflation figures for the second quarter of 2020 in July 2020, the Australian dollar strengthened, and Reserve Bank inflation rose by 1.5 percent. by 1.5 percent.

However, it should be noted that a policy of a very low level of inflation does not guarantee the state an advantageous exchange rate.

Unemployment rate

The unemployment rate is important for the economic situation of any country, as it affects the movements of foreign exchange rates in the country's forex markets and the stability of its currency in the forex trading process. Policymakers use unemployment rate statistics to study and identify which sectors are losing jobs most quickly. 

Furthermore, knowledge of the unemployment rate provides forex traders with clues about expected monetary policies in the future economic stability of the country in which forex is traded.

Note that: A rise in unemployment is often very negative for the local currency and usually leads to bearish shifts in Forex, while a decrease in unemployment leads to upward shifts.

Read Also: Learn top 3 profitable forex trading strategies

For example, the Australian dollar rose on December 20, 2020, as a result of an unprecedented drop in the unemployment rate in the country.

Economic growth

Economic growth is that indicator that is widely used to make a comprehensive assessment of the capacity of a country's economy. Where economic growth holds great potential to influence the movement of the forex market because it is the best measure to ascertain the country's position in forex trading.

Because it takes so long to publish GDP data, its effectiveness as a forex trading tool in the short and medium-term is limited.

Current account balance

Trade balance affects the supply and demand for forex trading, which directly affects the exchange rate of currencies.

He noted that if the country's exports exceed imports, this reflects the rise in demand for the country's goods, which thus leads to a rise in demand for the country's currency. In other words, an increase in the demand for a country's goods causes prices to rise, which in turn leads to a rise in the value of the currency.

State government debt

It is a well known fact that the government debt in the country has a direct and obvious impact on the forex market. A country with high government debt is usually one of the least attractive to foreign investors. In other words, the country's high debt without a reliable plan to address it will lead to a devaluation of the currency, and this affects forex trading directly.

We have seen above that the country's economic factors have a great influence on forex trading; However, it should be noted that the currency exchange rate also significantly affects the country's economy through its effect on trade flows between forex partners. Hence, a trader's proper knowledge of the relationship of exchange rates and a country's economy is essential before indulging in forex trading.

For more information:

Here are 7 reasons why you should invest in forex trading

Here are 7 reasons why you should invest in forex trading

Here are 7 reasons why you should invest in forex trading

forex trading

Here are 7 reasons why you should invest in forex trading , with increasing access to financial markets in different parts of the world, new investors are flocking to these markets in search of big profits. However, making profits in one of these areas, such as forex trading, can be challenging for those who are just getting started, especially if the trader is a retail trader. 

Having said that, small barriers should not discourage these traders, given the many advantages that forex trading offers. So Today, on vtkat Blog, we decided to review with you the benefits of forex trading, so keep reading.

7 reasons why you should invest in forex trading

Forex trading platforms have created a wide space for first time traders to explore trading. Traders are turning out to be progressively keen on purchasing and selling monetary forms all throughout the planet, similarly as they exchange stocks and bonds. 

However, the big difference that separates forex trading from the stock market is that currencies must be constantly exchanged with each other. While investors can hold on to stocks to reap the gains, one must exchange one currency for another in forex trading .

Due to the volatile nature of currencies, forex trading is often described as a risky arena for first time traders. However, with deep knowledge of the sector and comprehensive research, investors can make unexpected gains within a short period.

In today's article we will talk about:

  • Greater access to achieve your ambition
  • High earning potential
  • It's a liquid market
  • Forex trading saves you time flexibility
  • Reducing the role of the stock market
  • Easily available information
  • Anyone can trade in forex
  • Summary

Read Also: Understanding a Forex Broker

Against this background, let's discuss some of the exciting reasons to get into the world of forex trading :

1. Greater access to achieve your ambition

Due to the unique nature of forex trading , the forex market is open around the clock allowing traders all over the world to choose and trade any currencies of their choice. In addition, traders do not need to travel around the world to reap the rewards of the appreciation of foreign currencies.

Meanwhile, the registration fee required to enter the forex market is very reasonable and much lower than other investment platforms, which enhances the accessibility in this market. Thus, novice traders who want exposure to the forex market can start with a small amount and work their way up. 

2. High earning potential

The forex market has a great potential for profitable gains even for new traders. It has generally been observed that forex traders enter the market temporarily, and higher profitability urges them to stay longer. Some traders tend to quit their day jobs in the process.

However, traders can make higher gains in forex trading by increasing their investment. This approach should be well supported by gaining a thorough knowledge of the market and adopting smart decision-making.

3. It's a liquid market

Traders can enjoy a very high level of liquidity through forex trading compared to any other securities or assets. The forex market is characterized by high liquidity, as the supply and demand for currencies never stop. This broad seller and buyer base acts as a safety net for the market.

Furthermore, greater liquidity helps keep market volatility in check and prevents traders from taking massive losses. It is also not easy to manipulate the forex market with a large volume of buyers and sellers.

4. Forex trading saves you time flexibility

Another great feature that is limited to forex trading is the convenience it offers in terms of trading hours. This is in contrast to the stock market, where the forex market remains open 24/7 as all the stock exchanges operate globally. This is how the trading sector operates due to the overlap that exists in time zones across the different countries of the world.

Thus, for novice traders looking to exceed their local gains, there is no better place than the forex market. Where traders can start trading on various forex platforms according to the time they wish.

5. Reducing the role of the stock market

Most traditional forms of investment are very sensitive to all changes that occur in the stock market, and are known to have their own set of price swings. It should be noted that currency markets are affected to a very large extent by fluctuations associated with economic activities, which may not always be as fast as we have seen in the case of stock markets.

This feature makes forex trading the excellent way to diversify a trader's portfolio. Where if the stock market is slowing down, the trader can make up for the losses by diversifying his investments in the forex market which can bring him profits at that time.

6. Easily available information

Forex traders interested in making informed decisions in the forex market can by evaluating and analyzing economic data and keeping track of the latest global news on a regular basis. Traders can also get help from forex brokers who can provide them with relevant resources to educate themselves in forex trading.

In general, economic trends provide the transparent picture of how the forex market is performing. Additionally, if traders feel that one currency is going up, they can easily switch to the other as the currency pairs together move in the opposite direction. While their taking this judgment seems simple to trade, but one must approach with caution in this market.

7. Anyone can trade in forex

The forex market does not exclude those small traders who enter the market with a small capital. In addition, even with their limited experience, novice traders are not intimidated by other investors but rather gain experience from them, as they can gradually get used to the ups and downs of the forex market and can trade forex easily.

Forex trading provides equal platforms for investors of all categories. At the same time, it eliminates the need for them to use any forex tool or additional training required in order to make a profit. And every trader can rely solely on his wisdom and experience in order to earn big profits through forex trading.

While investing in forex seems to you an exciting venture, you as an investor must understand your needs and invest rigorously around you. In addition, you should do a thorough research to find a reliable forex broker in order to avoid scams.

In general, novice traders who want to enter the forex market do not need to fear much of losing their investment, if you are a trader who is about to get started in the currency trading market, you have to be well prepared and have a good knowledge of the economy. While a bit of experience is also beneficial to you, becoming a skilled forex trader requires dedication and diligent effort.

Read Also: How to Invest In Stocks?


Forex trading can be difficult for new traders because most of the novice forex traders often overlook the many advantages of forex trading that this market offers them.

Forex traders often consider the currency market to be a playground with many risks due to the volatile nature of currencies.

Although there are those different inherent risks, forex trading can provide you with far-reaching benefits for both new and existing forex traders.

For more information:

Foreign exchange market , From Wikipedia, the free encyclopedia

Should You Learn How to Trade Forex to Make Money?

Learn top 3 profitable forex trading strategies

Learn top 3 profitable forex trading strategies

Learn top 3 profitable forex trading strategies
Learn top 3 profitable forex trading strategies

Having an effective forex trading strategy is one of the most important prerequisites of trading for the trader to trade profitably in any forex market, whether it is the foreign exchange market, the stock market, the commodity market or even the cryptocurrency market, your adherence to the trading rules helps you achieve the highest profit, in Whereas, unorganized entries are a recipe for disaster and losses for sure.

Today on our blog vetkat ,through this article, we will shed light on what a profitable forex trading strategy is and why a trader needs it, using the means of illustration.

The main points of the topic:

  • What is a trading strategies?
  • How to pick forex strategies that work
  • Trading technical levels
  • Channel trading strategy
  • Moving Average Trading Strategy
  • What strategy do traders need

What is a trading strategies?

A forex trading strategy is basically a list that contains the steps a trader should take when making forex trades, it defines the conditions of the forex market under which a trade can be opened, it tells you the direction of the position, and where the trader should place the stop loss and take profit, usually Forex trading strategies stipulate the position size and what financial instruments a trader can use these trading strategies for.

So, why should a forex trader stick to these strategies? It is known that there are specific rules followed by the Forex market, where the price movement depends on the psychology of the main traders, and it also has its own types, this is what the rules of market price behavior depend on, which helps you to track the direction of Forex price movement, these patterns allow you to choose strategies Profitable trading, each of them presents a positive mathematical prediction for you, although forex trading can be both profitable and losing, however, your overall trading result will be black.

If each forex trading position is opened according to various rules and signals, this means that the trader is trading in a chaotic manner and his chances of making money in forex trading are close to zero.

How to pick forex strategies that work

When trying to learn how to trade forex, novice traders always ask about the best trading strategy for them to trade but there is always no right or definitive answer to this, since there are a lot of different forex trading strategies, while the only criterion that is used to distinguish between bad and good is Mathematical expectation If the outcome of the trades made by the trader according to the chosen forex trading strategy for three months or more remains positive, then it is safe to say that the forex strategy is working well, however, if the trader fails to make profits, he should consider switching the strategy Forex trading.

All forex trading strategies depend on one or several types of analysis, forex technical analysis, basic trading and the first indicator, this can be simple or complex, and has one or several rules for opening a trading position, a forex trading strategy can be as old as trading in The stock exchange itself, or the trader developed it on his own.

Where the forex trading strategies that people use to trade in the currency market differ in terms of the period of opening the position, it can be a long-term strategy, where the position is kept open for a period of up to a month or more, both in the medium and short term, day trading strategies and forex scalping strategies belongs to them too.

What is the trading strategy that best suits the needs of the trader?

The understanding, preferences and profitability of a forex trader are the factors that he must rely on when choosing forex trading strategies, the rules of which must be clear to him.

Choose strategies that align with your lifestyle and way of thinking:
Intraday forex trading strategies will succeed with those traders who spend the night worrying about the open position; It is known that medium-term trading is popular among forex traders who cannot spend much time in trading.

Speculative forex trading strategies allow for many daily forex trades to be made with periods of time that are so short that the trader does not have to devote much of his time to them; However, it requires high degrees of focus and accuracy and is very cumbersome.

Below we will explain forex trading strategies for beginners, so that they can master them and use them to make profits in the money market.

Trading technical levels

It is one of the forex trading strategies called support and resistance trading, and it is based on the rules of forex technical analysis mainly, and there are certain horizontal trading levels, and the price when it reaches them, either rebounds, or breaks their barrier and then starts moving to the next line, according to this strategy in Trading, prices move between strong levels, and the trader can open forex deals between them using the techniques of the breakout or bounce.

When a trader is trading with this profitable forex trading strategy, he needs to plot the price level from the monthly time frame to the one you are working on to the hourly time frame for example. , and the horizontal lines were built along the highs or lows of the charts, the shadows started to show a strong movement from them, the values ​​from which the price bounced up and down, as well as on the sideways trend price.

The rules for opening a position are quite clear:

  • When attaching the level to sulfur, the necklace can either bounce off it or break its barrier and keep moving down.
  • When we bounce off the oliwards, we are putting the long term liosition, the loss for lilace stoli behind the next false break, but with the lirofit next to the next resistance level, the reward-to-risk ratio should be 1:3, or at least 1: 2.
  • If the lirice breaks through the sulfur level and we fix it with the bounce as resistance, then we cut our short loss, cut the loss on stoli above the confirmed top and take the lirofit next to another level that is below.
forex trading strategies


What makes this forex trading strategy attractive is the simplicity of its clear rules, if prices bounce off support, the trader starts buying, and when price bounces off resistance, the trader starts selling, when prices break the level, the trader opens a trade in the direction of price action.


There are false breakouts and false confirmation levels in the market, and because of this, trades are closed with stop-loss orders, and you must gain the necessary experience to understand when waiting for a possible false breakout is logical, and when to re-enter even after the expulsion of stop-loss, and you have to re-enter once Others, because the center holds you a lot of promises in terms of making a profit.

Channel trading strategy

Technical analysis that states that the price is moving in the direction of the main trend, lies at the heart of these forex trading strategies.

Those channels can be bullish and bearish in the market, apart from that, prices usually move in a sideways direction which is a passage between two horizontal levels.

Channel Trading Rules:

1. When there is an uptrend, the trader buys only when the third retracement catches up with the price from the support line, the trader should place a stop loss order behind the previous lower bound of the channel, with the take profit being less than the resistance line.

2. Similarly, in the case of a downtrend, the trader only opens short positions, when prices bounce off the resistance line, the trader should place a stop loss order above the resistance line, with the take profit higher than the lower boundary of the trend.

3. In the case of a sideways trend, the trader is trading on a price bounce in both directions: buying with a target at the upper boundary, and selling at support when prices bounce off resistance.

forex trading strategies 1


This trading strategy is simple and straightforward, which makes it an ideal strategy for novice traders.


There are a few beautiful and technically correct channels that have formed on the charts, so the trader has to wait for a while until he hits an entry point. However, this problem can be addressed by linking the channel trading strategy to the level forex trading strategy explained earlier.

Moving average forex trading strategy

This is a trading strategy in which the moving average indicator is used, the indicator and its derivatives are used most of the time, and these forex trading strategies can be downloaded on any resource connected to online trading.

How do you trade it

The 12-period trader applies the simple moving average to the 15 million chart. This is the easiest option.
When prices cross the SMA line from bottom to top, the trader can open the long position.
If the trader sees that the price has crossed the SMA line from top to bottom, this means that he needs to sell.

forex trading strategies 2
forex trading strategies


Novice traders will find the simplicity and clarity of this strategy as it allows them to take profits with their short term forex day trades.


This forex trading strategy may generate some false signals, therefore, it is best to combine it with forex trading strategies based on technical analysis, to filter out any false entries.

What are the forex strategies that traders need

The process of choosing a forex trading strategy is simple but complex. Having a forex trading strategy is essential for a trader, but the strategy that a trader ultimately chooses depends on a lot of factors, and they are often very personal factors. In addition, you should test your trading system carefully and should It includes its own forex risk management indicators.

For more information:

Learn how to hack and win the forex trading contest in 7 steps

Learn how to hack and win the forex trading contest in 7 steps

forex trading contest
forex trading contest

In my first participation in the forex trading contest, it exploded in 2 days.

The following year, it ranked ninth out of 2,000 participants.

Now you may ask me: How did I do it?

Well, the answer is that I have some "tricks" in it which I will share with you later.

But first...

Realize that these "tricks" that you are about to learn can be used for good or evil.

So, you shouldn't abuse it, okay?

Having advised you, let's start…

What is a forex trading contest?

Forex Trading Contest is a contest between traders to see which trader can generate the highest returns within a period of time, some forex trading contests involve trading with real money while some traders use paper money to trade.

Now, before you get excited about winning the forex trading contest, you need to know the following:

Read Also: Here are 3 steps to win a forex trading contest on demo account

Did you know that winning the forex trading contest does not mean that you have become a consistently profitable trader, but the question here is: why is it?

The answer is quite simply that the Forex trading competition is not real and is like a simulation, there is no pressure on you because you are not trading with real money, and even if you are trading with real money, the amount of trading is often small.

In order for a trader to win the forex trading competition he has to use different trading techniques and strategies, even if some of them break the basic trading rules.

But before we talk about strategies for how to win a forex trading contest, every trader should know the following:

Who is the winner of the most profitable forex trading contest?

It is actually a forex broker, were you surprised by the answer?

Let me explain, my friend:

Sign-ups for the forex trading contest increase, because the traders spread the news among each other like their friends and relatives.

After competing in the competition, a large percentage of new traders will open a real account with a forex broker, this is because they have built familiarity and trust among themselves, and this increases their clients who may pay thousands of dollars if they are advertised.

This strategy is so profitable that Forex brokers can offer cash prizes to the best winner and those who are still ahead of it.

Don't get the above wrong, because this is not illegal, but you just have to know who is the one who wins the most in the forex trading contest.

Now that you know the truth my friend, let's learn together how you can be a contest winner too.

Continue reading…

Why you should "become a great trader or not" in the forex trading contest

  • First, the trader must risk 1% on each trade.
  • Secondly, the trader needs to apply proper forex risk management.
  • Third, the trader must risk a small portion of his trading capital.

Read Also: How to win forex trading contest on demo account

The above are good forex trading rules that a trader should follow if he is trading with a real account. But if a trader is applying these rules to a forex trading contest then this is a big mistake.


Because the goal of the trading competition is to reach the highest returns within a specified period of time, not knowing which trader has the greatest return compared to the amount of risk.

This means that the trader will place a large position size, risking anywhere from 5 to 50% of their account on each trade, which is the only way for them to get the triple digit return at the end of each trading contest.

Is this logical? Well, now we will break down a second basic rule of professional forex trading.

Why does a trader need a high win rate in a forex trading contest

How do? By having a wide stop loss with a small target profit, this will give you a high profit rate and quickly get you to the top of the competition.

The trader may wonder: do losses not erase most of the profits? In this case the trader is right, in the end the losses will come and wipe out the small wins, so, what should be done is for the trader to bet on the fact that his losses will come after the trading contest ends.

Depending on the duration of the trading contest, the shorter the duration, the higher the chances of success in it.

A trader can enjoy the glory of a superior trader without knowing the dangers of the tail end present in his trading results, we will teach you a trick to bypass the competitors and the competitor will not know what hit him in the face.

How to use one trick to dominate your competitors and leave them in the dust

Even if the trader applies the forex trading techniques that I explained to you earlier, it does not mean that the trader will rank first in the forex contest table, but the trader does not worry about that, we have the solution for that

for example:

  • The trader who wins the first position 150%.
  • The trader who wins the second position earns 140%.
  • The trader who wins the 3rd position earns 130%
  • The trader who wins the fourth position has a profit of 120%
  • The trader who wins the 5th place wins 100% and the forex competition ends in one day.

So what should a trader do? Well, the suggestion is to go ahead, which of course means risking the entire trader's account in one trade. Now before you think that's crazy, let's explain:

There is a 50% chance for the trader to win and a 50% chance for the trader to lose.

Think about it, I find that often the prize for a contest after third place is nothing and everyone only remembers who comes first, so from the point of view of trading risk to reward, it makes sense to enter with a 50% chance of winning a better prize and admit By everyone as the best trader.

Which is why if a trader is playing catch-up and the competition will be over in a short amount of time, it makes sense to get everything involved.

How to achieve 1140% in a forex trading contest

Here's how it works, the trader's financial guru sends a message to 10,000 people, where the newsletter says 50% that the stock called A will go up, and it says 50% that it will go down.

Analyzing this, if stock A rises, it means that 5,000 people have the right choice of stock trading.

Then, the financial guru sends another message to 5,000 people trading, the bulletin says 50% that the stock named B will go up, and it says 50% that the stock B will go down.

The analysis of this is that if stock "B" rises, then this means that the number of 2500 people have owned the correct shares twice in a row.

And again the financial guru sends another message to 2500 people, the bulletin says 50% that stock C will rise, while the bulletin says 50% that stock C will fall.

The analysis of this is that if the stock C rises, then this means that 1250 people have owned the correct stock three times in a row.

If the trader repeats this process 10 times, you will find 9 traders receive the correct choice of shares 10 times in a row.

But how does this generate 1140% in a forex trading contest? Well, here's the secret:

  • First: Entering a trading contest 100 times and using a different identity each time, because the more entries a trader can get, the better the returns.
  • Second: A trader should risk 50% of his account on each trade, he can risk more if he wants to and this trading technique will still work.
  • Third: You will find out of 100 of these accounts, 50 will be long on EUR/USD and the rest will be sold on EUR/USD.
  • Fourth: Out of 50 positive forex accounts, 25 will be bought on EUR/USD and the rest will be sold on EUR/USD.
  • Fifth: Among the 12 positive forex accounts, you will find 6 that will be sold on EUR/USD and the rest will be sold on EUR/USD.
  • Sixth: If the trader repeats these operations until he has one account left, and if all goes well, it is assumed that the account will go up by 1140% - which puts the trader in a very good position.
  • Seventh: The trader should not apply the above forex techniques and strategies in a real forex trading account because he will lose everything with time.


What we explained in today’s article titled Learn how to hack and win the forex trading contest, winning the forex trading contest and being a consistently winning trader are two different things, and this requires a set of different skills, usually whoever wins the forex trading contest is a forex broker, and the trader has to take the risk. 

He gets a large percentage of his account on every trade, and gets a high profit rate by executing a wide stop loss order or executing a no stop loss order completely, and he also has to participate in the last stage of the multi-entry trading contest, that would be better, leave a comment and tell us your thoughts on how to hack and win the forex trading contest.

For more information:

Foreign exchange market,From Wikipedia, the free encyclopedia

Trading HACKS To Make You A MASTER Forex