by Ntombi Malatsi | Jun 28, 2015 | FOREX TRAINING
When and How to hedge Forex position.
Synonyms: buffer, cushion, shield, safeguard.
Definition: protecting yourself against financial loss.
How exactly does hedging work:
Welcome back to my blog, thank you for being here again, just a short article I thought I should post regarding hedging Forex position, now that we know the definition of the word I am sure we all want to know how we can use hedging as a protective measure, please note this is not a way to replace stop loss, but it can really help to prolong the”life” of your trade should it go against you, stop loss should be a trader’s best friend, trading without stop loss is like walking naked in eloff street Johannesburg totally exposed. Sometimes trades won’t go our way (it happens to all of us) and sometimes we really want to avoid putting stop losses too tight, so hedging becomes one more option that we can use to protect ourselves from being stopped out too early or losing too much on one position, it also reduces anxiety should you have bad trades. Before reading further, please note that this should not be taken as a financial advice or trading strategy of some sort, should you decide to use it, do it with precautions.
How to hedge:
Hedging Forex position should not replace stop loss, but in case you find yourself on the wrong side (like we do sometimes) you can try it. I do this from time to time, and please note that I am not giving you a trading strategy here, it should not be used as a trading strategy, I am however just sharing my journey with you as I always do and if somehow you find yourself in the similar situation whereby you enter a trade and it goes against you, then you can try hedging, it does protect your account from being blown out of the market, precaution needs to be exercised when hedging Forex position as it may require big enough account, especially if you are trading CFD’s which then charges commission on most platforms. This is how I usually do it, lets say you have a Long Eurusd on H4 chart and as we know that the market is forever moving, swinging up and down and swinging up again before you can reach your target, along the way while you have your Long Eurusd a Shorting signal opportunity might arise on a shorter time frame, what do you do then? do you ignore the opportunity? do you close the long position you have (which is at a loss because the market is against you), i always seize the opportunity and go short on the same currency pair but do a bigger lot size than the initial position, if the initial position was 0.50 I would then go and do 1.00, but as mentioned above that you have to have a reasonable equity to be able to hedge, and having same currency pair opposite each other create an opportunity to kind of “cancel” the loss, or give your initial position a chance to come positive without being stopped out too early. If the position you hedged with come positive, you can then close the initial position and take a loss,you might still take a loss even when you hedged, but the losses would be more minimized than if you didn’t hedge or you can end up with small profits, but that is better than being stopped out or taking huge losses. That is how I do it, it is my own experience, but stop-loss remain my number one shield and it helps to stay disciplined.
Please also take note that not all the Forex bloggers are Forex traders, some information that we read out there does not really apply when trading real money, so learn to do more research whenever you come across a Forex blog post. On the other hand, though, all that you read on this blog is my own personal experience, I talk about what I have experienced in my trading journey. Thank you again for stopping by and reading my blog, if you wish to receive my weekly posts you can subscribe (locate the “SUBSCRIBE TO MY BLOG“) on the sidebar, simply put your email address there,wait for confirmation email, click on the link sent to your email to confirm your subscription and every time a new post is published you will have it delivered to your email, do contact me for further assistance or private lessons, kindly share this post using the share buttons below if you find this information valuable, stay tuned for more…
by Ntombi Malatsi | Jun 18, 2015 | FOREX FOR BEGINNERS
What are the top reasons Forex traders fail:
That is a trillion dollar question and yet the answer lies in the simplest changes we can implement as Forex traders. There are so many factors that contribute to the high statistics of failure among Forex traders, just to name the few top reasons Forex traders fail, I have compiled a list below, it is not something new, you have probably read about it a thousand times before you read here,but still you have failed a thousand times, learning never stops, we keep learning every day as long as we are in this Forex market which keeps on changing.
Forex trading is a business just like any other business, it has its highs and lows. Big banks and successful professional traders do not aim for 200% return in a month, but retail traders do and that leads to disaster and failure.
- REFUSING TO ACCEPT LOSSES:
The truth about Forex market is that you will be wrong sometimes and be on the wrong side of things, it happens to all of us, we all have a losing trade sometimes, the problem is when we refuse to accept that. Traders are so patient in keeping the losing trades for longer periods instead of accepting that they were not right this time around, they keep holding on to a losing trade up to the point that it hurts their account, cut the losses and move on, there are plenty opportunities that the market might present later. Always remember that in this market, when one currency pair is in the fall, their other one is on the rise, opportunities are always there, all you need to do when you feel like you encountered losses for the day, walk away and see the next day, call it a day, never ever try to trade out of revenge to get back the loss, the market has a painful way of dealing with traders who are out for revenge.
- TRADING WITHOUT A PROPER PLAN:
By proper plan, I am not referring to your trading strategy, but a trading plan. You need to know exactly what you would do should you have strings of losses in one day, you need to plan ahead and know the currencies that you’ll be trading and which sessions you’ll be trading and so forth, that is the kind of planning I am talking about.I is highly impossible to run a business without proper planning and following up on your plan, failing to plan is planning to fail, if you are just trading without a plan you are selling yourself short and heading for disaster, it is OK if you are not trading everyday, it is not necessary , success is in quality, not quantity.
I love this one because so many times I tried to be clever, it all led to disaster. No one can corner the market. Without a doubt, the most expensive way to learn Forex trading is from your own experience and mistakes, but it really doesn’t have to be like that, if you are fortunate enough to have a Forex mentor who is not only teaching you but also sharing with you all the mistakes they went through, you should take advantage of that by making sure you do not repeat the mistakes they made, because believe me, the mistakes can be costly. No matter what everyone else does or say Forex trading is not a get rich quick scheme, it is definitely not for lazy minded, there is no need to use high speed, it kills.
- UNDERCAPITALIZED ACCOUNT:
I know this might sound contradictory, I believe success is not found in huge start up capital, if you can handle a $1 account you can do the same with $10 000 account, but the problem is when traders insist on trading large volumes with the account that cannot afford to, when traders refuse point blank to trade 0.01 but insists on trading 0.50 on a very small equity, that is where the undercapitalized thing come from, I think if you can’t handle the small lot size, please do add funds to your trading account so that you can afford to trade any lot size, after all, you are in business, if you feel like it is too small for you, do what you need to do, add more funds then trade your desired lot size.
Using stop losses play a big part in money management, I cannot say this enough, know the costs, know if you can afford to open more positions, do not risk too much, calculate your risk. I have gone through everything mentioned above. Thank you for stopping by and reading my post, if you find it helpful please kindly share using the share buttons below.
by Ntombi Malatsi | Jun 16, 2015 | FOREX FOR BEGINNERS, FOREX TRAINING
When Is The Best Time To Trade Forex?
Have you ever asked yourself why is it that sometimes the Forex market seems “sleepy” whatever you try to do seems like you are just wasting your time and efforts? now is the time to find out why. I have people asking me sometimes how do I cope with training others, running this blog and at the same time manage to trade my own account, it is simply because I do not just trade at random times, I choose my markets wisely, there are times that I do not trade.
It has been said that the Forex market is open 24 hours, 5 and half days a week, but still there are times when you just have to stay away from the Forex markets. It might seem like it is not important to know the best time to trade Forex, but it is.
=====>Trade with regulated brokers here.
When Should You Trade Forex And Why?
The best time to trade Forex is when the market is active which then means more volumes of trades are being made on the market. Actively traded markets create more opportunities to trade and make profits while calm and slow markets will actually waste time and efforts, they are kind of”sleepy”.
Many traders are not really taking this into consideration, they just trade at any time because of the fact that the Forex market is open 24 hours a day, but the truth is there are good and the not so good times to trade, some traders know this but they choose to ignore it anyway. Before we can talk about the best time to trade Forex, there are 3 things that I think every Forex trader should adopt:
- Make profits
- Keep profits
- Repeat
Forex Market Hours
The Forex market has no physical location where all the buying and selling take place, therefore it allows anyone from any part of the world to participate, when one market closes another market opens giving everyone across the globe an opportunity to get their share of this trillion-dollar pie, but you have to know the best time to trade Forex.
The Forex market consists of four sessions, they open and close at different times, see table below.
Now that you know the opening and closing times for each Forex market, you can make informed decisions on when will be the best time to trade Forex for you.
If you need to open a live account, for the safety of your funds, do it with a regulated broker HERE. For further assistance in terms of selecting the best broker for your personal needs, you can WhatsApp me on +27 78 144 6851
For more information on my private mentorship, see this post HERE.
It is also reported by many traders that EUR pairs and GBP pairs are mostly traded during the London session, till we meet again , thank you for stopping by and reading my post.
I hope you find this helpful, if you do please feel free to share it using the share buttons below.
by Ntombi Malatsi | Jun 2, 2015 | UNCATEGORIZED
Forex for beginners-Learn Forex in south Africa
Welcome to my blog, welcome to my home where I share all my trading journey and more. I have been trading Forex for some years now, it has been a rocky journey full of mistakes, very costly mistakes I must say. When I first heard about the Forex market not so many people knew what it was all about, it was foreign to many, being a woman made it even more difficult for me as most people involved in the Forex market are man, it is still the case even today, Forex trading is fairly new in South africa, but i am here trying to change that. I remember how difficult it was for me to find help when I was starting out, everywhere I went I could only find traders (mostly man) who were already on top of their game and had no time to assist a wannabe like me, especially a woman, those who were nice enough to pay attention were either telling me about some expensive software that I would need to purchase and high fees to pay only to be taught for 4 days. In search of help I joined many Facebook groups and forums but still I found nothing but learning more about the lifestyle of the traders in the groups, their cars, expensive watches, designer clothes and showing off stacks of hundred rand notes, I felt like an unrecognized “cheerleader”.
I know a lot of people can relate to what I am saying here, maybe it is exactly what you are experiencing right now. I went through it all, I paid thousands of rands trying to acquire knowledge but it was all in vain, I would pay and they would open trading account for me and never care what happens to me after, they would refer me to babypips (which is a very helpful site) but unfortunately it doesn’t help that much if you are clueless, as most of the staff you read there is all new and foreign, not to mention the jargon. It is better to have someone who is already trading to help you especially if you have paid some money to the person, YouTube videos are helpful as well but not to teach you, but to assist when you already know “HOW TO”, after all i still remained clueless and I lost a lot in the Forex market. Because I know how to be taken for a “ride”, I have been scammed a lot because I was desperate and people out there can use that against you, I am now offering assistance to those in need.
If you want to learn forex in south africa, I can hold your hand as a beginner and show you the ropes. I do not believe in trading robots and I have wasted a lot on them and none of them ever produced results. I feel it is always easier if you find someone who can hold your hand while doing it together with you, I am that person. If you are in South Africa even outside south Africa and really wish to learn more about the Forex market, feel free to contact me for private lessons Admin@learnfxtrading.net alternatively you can add me on any of my social media pages found on the sidebar. Thank you for stopping by and reading my post, if you find this information useful please feel free to share it using the share buttons below.
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