Alan Solarsh - Is it possible to make money day trading forex? Foreign exchange (forex) trading is popular among people since it relies on the least amount of capital to start day trading. According to Alan Solarsh, it is open 24 hours a day during the week and offers a high level of profit potential due to the leverage provided by forex brokers.
Forex traders should have a stop-loss order or hedge order in place, and aim for at least a 50% win rate. With a high win rate, risk/reward flexibility can be increased, and the risk/reward ratio means that your win rate can be lower and still be profitable for you. With careful risk management, an experienced and successful forex trader with a 55% win rate can make returns above 20% per month. Forex Day Trading Risk Management Managing risk is one of, if not the most, crucial elements of ongoing profitability for every successful forex day trader. The first thing to remember is to keep your risk on each trade very low. For example, if you have a $3,000 account and trade, you shouldn't lose more than $30 on a single trade. While this may seem small, losses do add up, and even a good
Alan Solarsh - Is it possible to make money day trading forex? day trading strategy will suffer strings of losses. Risk is managed by using a stoploss order or hedge order. Forex Day Trading Strategy It is often the winning rate and risk/reward ratio that determines the ranking of a strategy despite the fact that it may have many components and be assessed in many different ways. Win Rate In day trading, a win rate is the number of trades you win out of a given total. If you win 55 out of 100 trades, your win rate would be 55%. A win rate of 55% is attainable by most day traders. Risk/Reward Risk/reward represents the capital being risked to attain a particular profit. For instance, if a trader loses 10 pips on losing trades, but makes 15 on winning trades, they are making more on the winners. Even if the trader only wins 50% of their trades, they will be profitable. This is why making more on winning trades is a strategic component for which many forex day traders strive. The higher your win rate is, the more flexibility you have with risk/reward; the higher your risk/reward, the lower your win rate will be, but you'll still be profitable. According to Alan Solarsh, the majority of forex brokers don't charge a commission, but instead, increase the spread between the bid and ask, making it more difficult to day trade profitably. ECN brokers typically offer a very small spread, allowing traders to trade more profitably. However, they typically charge about $2.50 for each $100,000 traded.