Alex Bobrov
Millions of people dream of becoming financially independent and making millions without even leaving home. Alas, when it comes to Forex trading, there are few people that can actually do it. Psychological burden along with crucial decision making makes trading a hard job.
Therefore, most beginning traders ask themselves the same question: to be (a Forex trader) or not to be? Well, let’s try to answer this question together with .
Self-confidence is a key to success
When most beginners start learning the fundamentals of Forex trading, they often think that it is enough to read a book or two written by a trading classic like Demark, Murphy or Elder in order to succeed in Forex in the long run.
Other (more experienced) traders know that their trading systems and approaches are only 50% of success. The rest is psychology. All the successful student of can confirm this thesis as they have learned that the trader’s mind and personality are more important than all those super-trading systems and mega-indicators.
According to Ilya Pressler, a major Forex trader and the head of the DFWA Department of , the industry’s best traders trade and make money “on their own side”. i.e. in harmony with their own personality. Everything changes, banks go bankrupt, broking companies come and go, but real professional always stay winning traders.
Forex Training – You Can Double Up Per One Trade
According to the expert, you don’t need to expose your entire capital to a single trade. However, if the market goes your way, you should make the most of it.
Let’s consider an example. This is a single trade made by a student of the DFWA Department of on his live account.
The chart shows that GBPJPY, the currency pair used to build a long-term rally. In 6 months it rallied from 118 up to 148, which is 3000 points! In early February 2013, the currency pair started showing weakening signs, thereby hinting at the forthcoming trend reversal. The currency pair was consolidating within a narrow price range. Then on February 7th, the price suddenly rallied once again, thereby hitting the all-time high but failed to consolidate there and made a sharp decline below the initial level of the recent rally started on Feb 7th. That was the wake-up call.
Even though at that point there was no confirmation that the trend was going to reverse, we could still go bearish as long as the exposure wasn’t too considerable. That is why money management is always super-important in trading. Even though in some cases the trend may continue, the student decided to wait for another upward move to open a mathematically sound bearish trade.
Over the next few days (Feb 8th -12th) the currency pair initiated a new wave of growth. On Feb 12th, the market came close to the local high. That is exactly where the student opened his bearish trade (the chart above confirms that). He sold at 147.66 ant placed a stop-loss order at 148 (stop-loss orders are always obligatory). Therefore, he risked 34 points (or 5 spreads) to catch a major downtrend.
What happened next?
You can see it if you look at the char above. To be short, there was a 1000-point bearish move. He closed the trade at 139. The profit was equal to 866 per single trade! Yet, the initial risk was just 34 points. That gives as the risk-reward ratio equal to 1:25. What does it mean? That means that you can risk 4% of your trading capital to make 100% in a couple of weeks!
Obviously, the DWA Department has a lot of innovative solutions that help students to identify trading opportunities with high probability.
For more details, please visit ’s forum for traders and investors.
Alex Bobrov
