Fascinating depiction of the global economy, broken down by geographic region. Each country’s is sized according to their percentage of global GDP output. (GDP data is via the World Bank, effective February 2017).
South America is much smaller than I expected, as is China (still). Amazing that US is about the same size of Europe.
One of the most important tools that a trader possesses is his or her mind. Attitude can either make or break you as a trader.
To become a successful trader it begins with believing in yourself and having a winning attitude.
Everyone wants to be a winner, at least they think so. Unfortunately, most are not willing to perform the tasks necessary to become a consistent winner.
Winners generally achieve success by being focused on a goal. Being focused allows winners to remain committed to the tasks at hand. Most winners perform a lot of hard work, including a willingness to deal with sometimes mundane duties. Most of all, winners perform with an “I am responsible for both my failures and successes” attitude. (more…)
1. Being able to grasp the big picture, to make connections and to recognize fresh possibilities. 2. Being able to use logic and analysis to base decisions on. 3. Being orderly, decisive and able to operate sequentially. |
Risk is a part of trading. Every trade carries a certain level of risk. Every trader must know the amount of risk that is being assumed on each trade. Knowing the amount of risk on each trade is one way to limit it and to protect your trading account. The best way to know your risk is to determine the risk-reward ratio. It is one of the most effective risk management tools used in trading.
The risk-reward ratio is a parameter that helps a trader to determine the level of risk in a trade. It shows how much a trader is risking versus the potential reward (or profit) on a trade. While this may seem simplistic, many traders neglect taking this step and often find that their losses are very large.
The minimum risk vs reward ratio for a good forex system should be 1:2, however a larger ratio is always better.
How to determine the risk vs reward ratio?
<!–[if !supportLists]–>1. <!–[endif]–>Determine the amount of risk for the trade. This is equal to your entry price minus your stop loss price or potential exit price.
<!–[if !supportLists]–>2. <!–[endif]–>Determine the potential reward on the trade. Based on your analysis or system, the potential exit price minus your entry price is your reward.
1 US 2 UK 3 Japan 4 France 5 Germany 6 China 7 Taiwan 8 India 9 Brazil 10 Singapore
