B-dollars forex capital

Simply being profitable is an admirable outcome when fees are taken into account.

Actual forex bonuses

How Much Trading Capital Do Forex Traders Need, b-dollars forex capital.

However, if an edge can be found, those fees can be covered and a profit will be realized. A trader that averages one tick per trade erases fees, covers slippage and produces a profit that would beat most benchmarks. The high failure rate of making one tick on average shows that trading is quite difficult. Otherwise, a trader could simply increase their bets to five lots per trade and make 15% per month on a $50,000 account. Unfortunately, a small account is significantly impacted by the commissions and potential costs mentioned in the section above. I

How much trading capital do forex traders need?

Accessibility in the forms of leverage accounts—global brokers within your reach—and the proliferation of trading systems have promoted forex trading from a niche trading audience to an accessible, global system.

However, the amount of capital traders have at their disposal will greatly affect their ability to make a living. A trader's ability to put more capital to work and replicate advantageous trades is what separates professional traders from novices. Just how much capital a trader needs, however, differs vastly.

Key takeaways

Traders often enter the market undercapitalized, which means they take on excessive risk to capitalize on returns or salvage losses.

Leverage can provide a trader with a means to participate in an otherwise high capital requirement market.

The leverage a trader requires varies, but if a trader is making consistent trades, the leverage required is simply enough that the trader is able to profit without taking unnecessary risks.

Considering leverage in forex trading

Leverage offers a high level of both reward and risk. Unfortunately, the benefits of leverage are rarely seen. Leverage allows the trader to take on larger positions than they could with their own capital alone, but impose additional risk for traders that do not properly consider its role in the context of their overall trading strategy.

Best practices would indicate that traders should not risk more than 1% of their own money on a given trade. While leverage can magnify returns, it's prudent for less-experienced traders to adhere to the 1% rule. Leverage can be used recklessly by traders who are undercapitalized, and in no place is this more prevalent than the foreign exchange market, where traders can be leveraged by 50 to 400 times their invested capital.

A trader who deposits $1,000 can use $100,000 (with 100 to 1 leverage) in the market, which can greatly magnify returns and losses. This is considered acceptable as long as only 1% (or less) of the trader's capital is risked on each trade. This means that with an account size of $1,000, only $10 (1% of $1,000) should be risked on each trade.

While difficult in practice, traders should avoid the temptation of trying to turn their $1,000 into $2,000 quickly. It may happen, but in the long run, the trader is better off building the account slowly by properly managing risk.

Respectable performance for forex traders

Every trader dreams of becoming a millionaire by making intelligent bets off of a small amount of capital. The reality of forex trading is that it is unlikely to make millions in a short timeframe from trading a small account.

While profits can accumulate and compound over time, traders with small accounts often feel pressured to use large amounts of leverage or take on excessive risk in order to build up their accounts quickly. When factoring fees, commissions and/or spreads into return expectations, a trader must exhibit skill just to break even.

Simply being profitable is an admirable outcome when fees are taken into account. However, if an edge can be found, those fees can be covered and a profit will be realized. A trader that averages one tick per trade erases fees, covers slippage and produces a profit that would beat most benchmarks.

Are you undercapitalized for making a living in forex trading?

The high failure rate of making one tick on average shows that trading is quite difficult. Otherwise, a trader could simply increase their bets to five lots per trade and make 15% per month on a $50,000 account. Unfortunately, a small account is significantly impacted by the commissions and potential costs mentioned in the section above. I

N contrast, a larger account is not as significantly affected and has the advantage of taking larger positions to magnify the benefits of day trading. A small account by definition cannot make such big trades, and even taking on a larger position than the account can withstand is a risky proposition due to margin calls.

If the goal of day traders is to make a living off their activities, trading one contract 10 times per day while averaging a one-tick profit may provide an income, but is not a livable wage when factoring other expenses.

There are no set rules on forex trading—each trader must look at their average profit per contract or trade to understand how many are needed to meet a given income expectation, and take a proportional amount of risk to curb significant losses.

Bitrobot review: 21% a month USD/crypto ponzi scheme

Bitrobot provides no information about who owns or runs the company on its website.

Bitrobot’s website domain (“bit-robot.Io”) was privately registered on march 11th, 2020.

In an attempt to appear legitimate, bit robot provides a UK incorporation number on its website.

The number corresponds with robots solutions limited, incorporated on july 27th.

UK incorporation is dirt cheap and effectively unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.

At the time of publication alexa ranks bitrobot’s top three sources of website traffic as bangladesh (15%), russia (10%) and iran (7%).

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

Bitrobot’s products

Bitrobot has no retailable products or services, with affiliates only able to market bitrobot affiliate membership itself.

Bitrobot’s compensation plan

Bitrobot affiliates invest USD and/or cryptocurrency on the promise of advertised returns:

Basic – invest 0.02 to 0.19999999 BTC ($250 to $2499.99) and receive “around 14%” monthly

Performer – invest 0.2 to 1.99999999 BTC ($2500 to $24,999.99) and receive “around 17%” monthly

Supreme – invest 2 BTC ($25,000) or more and receive “around 21%” monthly

Bitrobot caps returns at 200%.

Note that while only bitcoin and USD amounts are provided above, bitrobot solicits investment in bitcoin cash, dash, ethereum, litecoin, pivx, ripple and monero.

Bitrobot affiliate ranks

There are nine ranks within bitrobot’s compensation plan.

Along with their respective qualification criteria, they are as follows:

Rookie – invest $250

Leader – invest $500 and generate $1000 in downline investment

Manager – invest $750 and generate $3000 in downline investment

Vice director – invest $1500 and generate $10,000 in downline investment

Director – invest $2500 and generate $30,000 in downline investment

Vice president – invest $5000 and generate $100,000 in downline investment

Chairman – invest $7500 and generate $300,000 in downline investment

Platinum chairman – invest $15,000 and generate $1,000,000 in downline investment

Diamond chairman – invest $25,000 and generate $3,000,000 in downline investment

Note that bitrobot only counts downline investment through nine levels of recruitment (unilevel):

100% of investment on level (personally recruited affiliates) is counted

50% of investment on level 2 is counted

30% of investment on level 3 is counted

15% of investment on level 4 is counted

10% of investment on level 5 is counted

5% of investment on level 6 is counted

2% of investment on level 7 is counted

1% of investment on levels 8 and 9 is counted

For more details on the unilevel team structure see “referral commissions” below.

Referral commissions

Bitrobot pays referral commissions via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Bitrobot caps referral commissions at nine, based on rank:

Rookies earn 7% on level 1 (personally recruited affiliates) and 4% on level 2

Leaders earn 7% on level 1, 4% on level 2 and 3% on level 3

Managers earn 7% on level 1, 4% on level 2, 3% on level 3 and 2% on level 4

Vice directors earn 7% on level 1, 4% on level 2, 3% on level 3 and 2% on levels 4 and 5

Directors earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5 and 1% on level 6

Vice presidents earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6 and 0.5% on level 7

Chairmans earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6 and 0.5% on levels 7 and 8

Platinum and diamond chairmans earn 7% on level 1, 4% on level 2, 3% on level 3, 2% on levels 4 and 5, 1% on level 6, 0.5% on levels 7 and 8 and 2.5% on level 9

Rank achievement bonus

Bitrobot rewards affiliates for qualifying at leader and higher with the following one-time cash bonuses:

Qualify at rookie and receive $75

Qualify at manager and receive $250

Qualify at vice director and receive $750

Qualify at director and receive $2000

Qualify at vice president and receive $10,000

Qualify at chairman and receive $20,000

Qualify at platinum chairman and receive $50,000

Qualify at diamond chairman and receive $150,000

Joining bitrobot

Bitrobot affiliate membership is free.

Full participation in the attached income opportunity however requires investment in USD or cryptocurrency (as detailed in the compensation section above).

Conclusion

Bitrobot claims to generate ROI revenue through “automated trading”.

No evidence of trading activity taking place is provided, nor is there any evidence of external revenue being used to pay returns.

Furthermore, bitrobot’s business model fails the ponzi logic test.

Despite not existing until a few months ago, bitrobot states on their website that

Over the last 4 years, we have averaged 28.7% on a monthly basis.

Four years is forty-eight months, which compounded at 28.7% each month turns any capital amount into a fortune.

So why do bitrobot’s owners need your money for?

As it stands the only verifiable source of revenue entering bitrobot is new investment.

Using new investment to pay existing affiliates advertised returns makes bitrobot a ponzi scheme.

As with all MLM ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve bitrobot of ROI revenue, eventually prompting a collapse.

The math behind ponzi schemes guarantees that when they collapse, the majority of participants lose money.

Update 11th january 2021 – as of late december 2020, bitrobot has collapsed.

Forex – the world’s largest capital market

The forex market makes up the largest single capital market in the world. With a daily turnover often seen of over $3 trillion, the forex market has no equal in the world of international finance.

For example, the size of the forex market in terms of turnover is considered to be ten times the size of the bond market and fifty times the size of the equity market.

Nevertheless, the popularity of the forex market with smaller traders has had to wait until the relatively recent advent of online retail forex trading accounts.

As the popularity of trading in the forex market increases, more and more traders are finding out that the forex market is not only the largest financial market in the world, but also the deepest and most liquid.

Forex market participants

The majority of trading on the foreign exchange market consists of currency transactions made between:

Banks

Major international corporations

Governments

Central banks

Hedgers

Speculators

High net worth individuals

While commercial hedging and speculative trading transactions make up a large part of the size of the forex market, central banks often intervene in the markets in large size to prevent excessive currency swings.

The most liquid and widely traded currency in the largest market in the world is the U.S. Dollar. This currency has held that position for quite some time, probably largely due to it being the currency most popularly held in reserve by central banks around the world.

The U.S. Dollar and international debt

Despite enormous budget deficits, a widening trade deficit, a real estate crisis, and the U.S. Federal reserve’s apparent willingness to print as many dollars as it can within its capacity as the united states’ central bank, the U.S. Dollar seems to have a resiliency not seen in other currencies. Why?

The answer to this lies in the fact that the U.S. Dollar was at one time the currency which represented the international standard of value all over the world.

After world war II, most countries had been forced off of the gold standard by the conflict. This made the U.S. Dollar, which was then still convertible into gold, a benchmark currency to which other currencies could be pegged. The dollar itself was taken off the gold standard in the early 1970s by then-president richard nixon.

Since that time, and coupled with the establishment of the international monetary fund, the international debt of most countries which actively trade on a global basis is now largely denominated in U.S. Dollars.

In fact, all debt held by the international monetary fund is denominated in U.S. Dollars. This means that if a loan is made by the IMF to a third world nation, that nation will receive the funds in dollars and will have to pay back the loan in dollars.

Consequently, any attempt to repay the loan or stabilize their national currency would necessitate the trading of dollars on the forex market.

Key reserve currencies

Reserve currencies are those which countries and governments hold “in reserve” for their own foreign exchange dealings. They are also sometimes used to price and purchase key strategic commodities.

In terms of the percentage of global currency reserves, the U.S. Dollar clearly leads all other currencies with 61.5% of world reserves – a key element in many traders’ fundamental analysis for this currency. The euro follows with 28.1%, the U.K.’s pound sterling with 4.2%, and the japanese yen with 3.0%.

How did the U.S. Dollar get to become the world’s premier reserve currency?

The answer to this question lies in the fact that the dollar has been used for many years in the valuation and commercial trading of crude oil, as well as with other key commodities like gold. Read more about how the dollar became the world’s premier reserve currency.

Risk statement: trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

Fxdailyreport.Com

Starting to trade in forex and in general trading in any other financial market, is today easier than ever. And it is that access to brokers where to trade with all kinds of financial instruments requires little more than an internet connection. But often new traders forget that the available trading capital will affect their trading capacity. You often want to start with a small account and live from trading in a matter of a few months.

From a strict point of view, to operate in forex you need a computer, internet connection and amounts as low as 1 USD. Yes, you read that right, there are brokers that allow you to open trading accounts with just one dollar. But what can you do with a one dollar account?

The minimum recommended amount

In a very general way and without taking into account many factors, some amounts where the vast majority could fit would be 25 thousand dollars to trade in the stock market, for futures between one thousand and five thousand and to start in forex it would be enough with $500.

For me the numbers given in the previous paragraph do not make sense if they are not accompanied by more information and some calculations. Before continuing, always be very clear about these premises:

Invest only the money you do not need for anything else, that money that if you lose it does not mean a sharp change in your lifestyle.

If you have just started, do not start risking all your capital, so you can recover if you lose a lot in your trading account and start over.

Only start trading with real money after you have trained and practiced at least few months.

To calculate the money you will need to start trading, you must first meet the minimum to open an account in the best forex broker you have chosen, that is, meet your initial margin requirement. To this amount you will have to add the amount that contribute factors such as your profit objectives, your trading style and trading conditions of the broker, commissions, margin required before a margin call, etc.

What I propose is to make a business plan, trade in forex is that after all, isn’t it? You have to have a plan in which your goals are set, how are you going to accomplish your goals and what are you going to do in case of possible setbacks (which will surely arise). Having a plan does not guarantee success at all but it is much better to have it than not to have it, this point should be very clear.

Practical example

It is assumed that, before switching to real money trading, you have been training and practicing for at least one year with your trading system, so you must have data on it, such as maximum expected drawdown. Suppose the maximum drawdown you expect is 30%. Would a $ 500 account be enough if my broker only allows me to trade with at least 1 lot? If we review the lesson about the pip and the lot we will see that a standard lot is 100 thousand dollars.

When trading with 1 lot in pairs such as EUR/USD, the profit is $ 10 for each profit pip, and the loss is $ 10 for each lost pip. Thus, without counting the commission pips that the broker takes, with a movement against only 30 pips, $ 300 would have been lost, which has doubled the maximum drawdown (30% of 500 is 150), it would have lost more than half of the money in the account and would be at the limit of a margin call. Obviously for this case 500 USD would not be the amount of money needed to start as it would be too risky for the trading conditions of the broker and the trading style of the trader.

Assume now the same previous conditions but with a minimum volume per operation of 0.1 lots. To reach the same dire point, 300 pips of loss would now be necessary. And with 150 pips of loss we would have reached the maximum drawdown of our trading system. This situation is already much more benevolent. And 500 dollars can be worth as a starting capital or maybe not, it depends on the objectives and other characteristics of the trader’s trading style. If I put my specific case, they would not be enough at all since 150 pips is my stop loss in each order so losing a single operation would be at my maximum drawdown and losing too much money with respect to the total of the account, and with 2 or 3 three consecutive losing operations would be out.

Now suppose that for a trader in question 500 dollars are, as we saw before, a sufficient amount of money to start. And so as not to get too caught up, he decides that instead of 500 USD he will open his account with 1000 USD and will operate with 0.1 lot. In this situation you will be more relaxed about the drawdown, the margin call and this whole topic. But now he stops to think about his goals. It turns out that trading on paper during your training comes to forecast average earnings of 6% per month. But he wants to earn at least $ 1,000 a year. 6% of 1000 are 60, which multiplied by 12 would be 720 dollars. With these initial 1000 dollar numbers they would fall short to meet their objectives, adapt to the trading system and the conditions of the broker. To accomplish all this you would need at least $ 1,500 initial.

I hope it was clear what i was trying to expose. You may need as much money to start trading as the joint needs of your trading style, your goals, the broker’s conditions and your own resources require. With these factors in mind, you can now look closely at the minimum amount to start forex trading. Hopefully these tips have been useful and help you to take appropriate considerations.

Forex – the world’s largest capital market

The forex market makes up the largest single capital market in the world. With a daily turnover often seen of over $3 trillion, the forex market has no equal in the world of international finance.

For example, the size of the forex market in terms of turnover is considered to be ten times the size of the bond market and fifty times the size of the equity market.

Nevertheless, the popularity of the forex market with smaller traders has had to wait until the relatively recent advent of online retail forex trading accounts.

Forex market participants

The majority of trading on the foreign exchange market consists of currency transactions made between:

Banks

Major international corporations

Governments

Central banks

Hedgers

Speculators

High net worth individuals

The U.S. Dollar and international debt

The answer to this lies in the fact that the U.S. Dollar was at one time the currency which represented the international standard of value all over the world.

Consequently, any attempt to repay the loan or stabilize their national currency would necessitate the trading of dollars on the forex market.

Key reserve currencies

How did the U.S. Dollar get to become the world’s premier reserve currency?

How much money can I make forex day trading?

Julie bang @ the balance 2021

Many people like trading foreign currencies on the foreign exchange (forex) market because it requires the least amount of capital to start day trading. Forex trades 24 hours a day during the week and offers a lot of profit potential due to the leverage provided by forex brokers. forex trading can be extremely volatile and an inexperienced trader can lose substantial sums.

The following scenario shows the potential, using a risk-controlled forex day trading strategy.

Forex day trading risk management

Every successful forex day trader manages their risk; it is one of, if not the most, crucial elements of ongoing profitability.

To start, you must keep your risk on each trade very small, and 1% or less is typical. this means if you have a $3,000 account, you shouldn't lose more than $30 on a single trade. That may seem small, but losses do add up, and even a good day-trading strategy will see strings of losses. Risk is managed using a stop-loss order, which will be discussed in the scenario sections below.

Forex day trading strategy

While a strategy can potentially have many components and can be analyzed for profitability in various ways, a strategy is often ranked based on its win-rate and risk/reward ratio.

Win rate

Your win rate represents the number of trades you win out a given total number of trades. Say you win 55 out of 100 trades, your win rate is 55 percent. While it isn't required, having a win rate above 50 percent is ideal for most day traders, and 55 percent is acceptable and attainable.

Risk/reward

Risk/reward signifies how much capital is being risked to attain a certain profit. If a trader loses 10 pips on losing trades but makes 15 on winning trades, she is making more on the winners than she's losing on losers. This means that even if the trader only wins 50% of her trades, she will be profitable. Therefore, making more on winning trades is also a strategic component for which many forex day traders strive.

A higher win rate for trades means more flexibility with your risk/reward, and a high risk/reward means your win rate can be lower and you'd still be profitable.

Hypothetical scenario

Assume a trader has $5,000 in capital funds, and they have a decent win rate of 55% on their trades. They risk only 1% of their capital or $50 per trade. This is accomplished by using a stop-loss order. For this scenario, a stop-loss order is placed 5 pips away from the trade entry price, and a target is placed 8 pips away.

This means that the potential reward for each trade is 1.6 times greater than the risk (8 pips divided by 5 pips). Remember, you want winners to be bigger than losers.

While trading a forex pair for two hours during an active time of day it's usually possible to make about five round turn trades (round turn includes entry and exit) using the above parameters. If there are 20 trading days in a month, the trader is making 100 trades, on average, in a month.

Trading leverage

In the U.S., forex brokers provide leverage up to 50:1 on major currency pairs. for this example, assume the trader is using 30:1 leverage, as usually that is more than enough leverage for forex day traders. Since the trader has $5,000, and leverage is 30:1, the trader is able to take positions worth up to $150,000. Risk is still based on the original $5,000; this keeps the risk limited to a small portion of the deposited capital.

Forex brokers often don't charge a commission, but rather increase the spread between the bid and ask, thus making it more difficult to day trade profitably. ECN brokers offer a very small spread, making it easier to trade profitably, but they typically charge about $2.50 for every $100,000 traded ($5 round turn).

Trading currency pairs

If you're day trading a currency pair like the USD/CAD, you can risk $50 on each trade, and each pip of movement is worth $10 with a standard lot (100,000 units worth of currency). therefore you can take a position of one standard lot with a 5-pip stop-loss order, which will keep the risk of loss to $50 on the trade. That also means a winning trade is worth $80 (8 pips x $10).

This estimate can show how much a forex day trader could make in a month by executing 100 trades:

Gross profit is $4,400 - $2,250 = $2,150 if no commissions (win rate would likely be lower though)

Net profit is $2,150 - $500 = $1, 650 if using a commission broker (win rate would be like be higher though)

Assuming a net profit of $1,650, the return on the account for the month is 33 percent ($1,650 divided by $5,000). This may seem very high, and it is a very good return. See refinements below to see how this return may be affected.

Slippage larger than expected loss

It won't always be possible to find five good day trades each day, especially when the market is moving very slowly for extended periods.

Slippage is an inevitable part of trading. It results in a larger loss than expected, even when using a stop-loss order. It's common in very fast-moving markets.

To account for slippage in the calculation of your potential profit, reduce the net profit by 10% (this is a high estimate for slippage, assuming you avoid holding through major economic data releases). This would reduce the net profit potential generated by your $5,000 trading capital to $1,485 per month.

You can adjust the scenario above based on your typical stop loss and target, capital, slippage, win rate, position size, and commission parameters.

The final word

This simple risk-controlled strategy indicates that with a 55% win rate, and making more on winners than you lose on losing trades, it's possible to attain returns north of 20% per month with forex day trading. Most traders shouldn't expect to make this much; while it sounds simple, in reality, it's more difficult.

Even so, with a decent win rate and risk/reward ratio, a dedicated forex day trader with a decent strategy can make between 5% and 15% a month thanks to leverage. Also remember, you don't need much capital to get started; $500 to $1,000 is usually enough.

The balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

How to spot a forex scam

The spot forex market traded over $6.6 trillion a day as of april 2019, including currency options and futures contracts. with this enormous amount of money floating around in an unregulated spot market that trades instantly, over the counter, with no accountability, forex scams offer unscrupulous operators the lure of earning fortunes in limited amounts of time. While many once-popular scams have ceased—thanks to serious enforcement actions by the commodity futures trading commission (CFTC) and the 1982 formation of the self-regulatory national futures association (NFA)—some old scams linger, and new ones keep popping up.

Back in the day: the point-spread scam

An old point-spread forex scam was based on computer manipulation of bid-ask spreads. The point spread between the bid and ask basically reflects the commission of a back-and-forth transaction processed through a broker. These spreads typically differ between currency pairs. The scam occurs when those point spreads differ widely among brokers.

Key takeaways

Many scams in the forex market are no longer as pervasive due to tighter regulations, but some problems still exist.

One shady practice is when forex brokers offer wide bid-ask spreads on certain currency pairs, making it more difficult to earn profits on trades.

Be careful of any offshore, unregulated broker.

Individuals and companies that market systems—like signal sellers or robot trading—sometimes sell products that are not tested and do not yield profitable results.

If the forex broker is commingling funds or limiting customer withdrawals, it could be an indicator that something fishy is going on.

For instance, some brokers do not offer the normal two-point to three-point spread in the EUR/USD but spreads of seven pips or more. (A pip is the smallest price move that a given exchange rate makes based on market convention. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point.) factor in four or more additional pips on every trade, and any potential gains resulting from a good trade can be eaten away by commissions, depending on how the forex broker structures their fees for trading.

This scam has quieted down over the last 10 years, but be careful of any offshore retail brokers that are not regulated by the CFTC, NFA, or their nation of origin. These tendencies still exist, and it’s quite easy for firms to pack up and disappear with the money when confronted with actions. Many saw a jail cell for these computer manipulations. But the majority of violators have historically been united states-based companies, not the offshore ones.

The signal-seller scam

A popular modern-day scam is the signal seller. Signal sellers are retail firms, pooled asset managers, managed account companies, or individual traders that offer a system—for a daily, weekly, or monthly fee—that claims to identify favorable times to buy or sell a currency pair based on professional recommendations that will make anyone wealthy. They tout their long experience and trading abilities, plus testimonials from people who vouch for how great a trader and friend the person is, and the vast wealth that this person has earned for them. All the unsuspecting trader has to do is hand over X amount of dollars for the privilege of trade recommendations.

Many of signal-seller scammers simply collect money from a certain number of traders and disappear. Some will recommend a good trade now and then, to allow the signal money to perpetuate. This new scam is slowly becoming a wider problem. Although there are signal sellers who are honest and perform trade functions as intended, it pays to be skeptical.

"robot" scamming in today’s market

A persistent scam, old and new, presents itself in some types of forex-developed trading systems. These scammers tout their system’s ability to generate automatic trades that, even while you sleep, earn vast wealth. Today, the new terminology is “robot” because the process is fully automated with computers. Either way, many of these systems have never been submitted for formal review or tested by an independent source.

Examination of a forex robot must include the testing of a trading system’s parameters and optimization codes. If the parameters and optimization codes are invalid, the system will generate random buy and sell signals. This will cause unsuspecting traders to do nothing more than gamble. Although tested systems exist on the market, potential forex traders should do some research before putting money into one of these approaches.

Other factors to consider

Traditionally, many trading systems have been quite costly, up to $5,000 or more. This can be viewed as a scam in itself. No trader should pay more than a few hundred dollars for a proper system today. Be especially careful of system sellers who offer programs at exorbitant prices justified by a guarantee of phenomenal results. Instead, look for legitimate sellers whose systems have been properly tested to potentially earn income.

Another persistent problem is the commingling of funds. Without a record of segregated accounts, individuals cannot track the exact performance of their investments. This makes it easier for retail firms to use an investor’s money to pay exorbitant salaries; buy houses, cars, and planes or just disappear with the funds. Section 4D of the commodity futures modernization act of 2000 addressed the issue of fund segregation; what occurs in other nations is a separate issue.

An important factor to always consider when choosing a broker or a trading system is to be skeptical of promises or promotional material that guarantees a high level of performance.

Other scams and warning signs exist when brokers won’t allow the withdrawal of monies from investor accounts, or when problems exist within the trading platform. For example, can you enter or exit a trade during volatile market action after an economic announcement? If you can’t withdraw money, warning signs should flash. If the trading platform doesn’t operate to your liquidity expectations, warning signs should flash again.

The bottom line

Conduct due diligence on the forex broker you’re considering by going to the background affiliation status information center (BASIC), created by the NFA. Many changes have driven out the crooks and the old scams and legitimized the system for the many good firms. However, always be wary of new forex scams; the temptation and allure of huge profits will always bring new and more sophisticated scammers to this market.

Commitments of traders with delta adjusted options and futures combined

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1000 dollars a day forex capital management

Want to start day trading forex? Just because forex brokers only require a small initial deposit doesn't mean that is the recommended management, though. Based on your goals and trading style here's how much capital you management to start day trading forex think forex is confusing, here's what you need to know. Even great traders dollars strings of losses; by keeping the risk on each trade small, even a losing streak won't significantly draw down forex. Risk is determined by the difference between your entry price and the price of your stop 1000 ordermultiplied by the position size and the pip value discussed capital the scenarios below. Unlike the stock market, there day no legal minimum you need to start day trading forex. The forex market moves in pips. Forex pairs trade in10, andunits, called micro, mini and standard dollars. When starting out forex day trading it's recommended traders open a micro lot account. This provides more flexibility. As forex as risk is controlled on 1000 trade, leverage is a significant advantage in forex trading. Search the site GO. Day trading basics trading systems trading psychology trading strategies stock markets risk management forex technical indicators options glossary. Updated october 13, get daily money tips to your inbox email address sign up. There was an error. Please enter day valid email address. Personal finance money hacks your career small business investing about us advertise terms of use capital policy careers contact.

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FOREX-dollar extends bounce as stimulus hopes stall short bets

* rising U.S. Yields give short bettors pause for thought

* dollar rises to two-week high vs EUR and GBP

* AUD, NZD slip to one-week low

SINGAPORE, jan 11 (reuters) - the dollar extended a rebound on monday, as sharp gains in U.S. Yields and hopes for more stimulus to boost the world’s largest economy prompted some investors to temper bearish bets, pulling the currency further away from recent multi-year lows.

President-elect joe biden, who takes office on jan. 20 with democrats able to control both houses of congress, has promised “trillions” in extra pandemic-relief spending.

That has pushed the yield on the benchmark 10-year U.S. Debt up more than 20 basis points to 1.1187% this year, which helped the dollar to a one-month high of 104.095 yen monday as better rates gave pause to some dollar shorts.

The australian and new zealand dollars each fell more than 0.5% against the dollar to one-week lows, while the euro and sterling lost 0.3% to touch two-week lows.

The euro last traded at $1.2183 after climbing as high as $1.2349 last week.

“the underlying source of the revival has been the aftermath of the senate elections and markets anticipating that we might get substantially more fiscal support for the U.S. Economy,” said national australia bank’s head of FX strategy, ray attrill.

“everyone’s asking whether this changes the weaker dollar narrative - that’s why I think we’re getting a bit of a continuation of what we’re seeing on thursday and friday.”

Attrill said he was not buying a rebound yet, as shifts in relative yields tend to take a while to play out in currency markets, because extra stimulus is by no means certain and as other factors weighing on the dollar remain in place.

But with bets against the dollar such a crowded trade, the scale of selloff in the bond market since the democrats won control of the senate last week, has been enough to slow what has been a steep and steady decline since last march.

The dollar index lost more than 12% since a three-year peak in march, however, it has bounced 1.2% from an almost three-year low last week to steady at 90.291 on monday.

The australian dollar retreated further from last week’s more-than-two-year high of $0.7819 to trade 0.7% lower at $0.7712 on monday, unmoved by another solid month of local retail sales.

The kiwi slipped 0.6% to $0.7194 and dollar gains were broad, if smaller, elsewhere in asia.

The dollar rose 0.15% to 6.4746 yuan in offshore trade and it rose to a two-week high of 1.3288 singapore dollars. The baht, ringgit and rupiah all also slipped.

“the weaker dollar narrative and broad-based ebullience for emerging markets have been challenged earlier in the year than we forecast, which may lead to a rethink of consensus trades, at least in the week ahead,” barclays analysts said in a note.

“we stick to our non-consensus view that the dollar is likely to benefit from better growth and returns to capital over the remainder of the year.”

so, let's see, what we have: forex traders can see substantial benefits from capital gains in the form of a small pip profit over time, but with considerable leverage, a single pip can result in a hefty return. At b-dollars forex capital