Choosing a smart Risk:Reward ratio is key

Without a doubt, the goal of Trading is to increase the value of your Trading Account. That implies that the overall result of your trades is positive. For that to happen, the first thing a trader has to do is to preserve his/her capital. One must never forget that it is far better to miss one entry than to rush in and let emotion hurry us into a trade without knowing and measuring the exit scenario. That can only result in a (very) near and dark future.

Therefore, beyond an attentive market analysis and the implementation of the right Risk Management, a very important issue is an adequate choice of your Risk:Reward ratio. This means, it simply doesn’t matter if your entry is perfect when your potential reward isn’t worth it.

Since Trading is a matter of probability and the Professional Trader is supposed to make the most out of every factor that will increase the Trader’s Edge, all the parameters below must coexist:

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What the h… is the Forex Market?

CurrencyTrading

The Forex (Foreign Currency Exchange) Market is the world´s biggest financial market as it is composed by all the currencies available (the ‘old’ printed ones, not the new digital ones). In the FX Market, you can see the currencies as pairs – Euro against US Dollar, Euro against Sterling, US Dollar against Canadian Dollar, … – and they are always increasing or decreasing their value one against the other, which is why we can listen to expressions like “the US Dollar is decreasing against the Euro” on the media. This is the Forex Market.

So, how can we make money within this context? Simple: by investing in the relative value of one currency against the other and keeping in mind that money can be made on both the increase or decrease of the value of a currency against the other.

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Sometimes, not trading is the best way to trade

PlanYourTrades

There are some periods that, due to the volatility and irregularity of the Market, the required conditions to place trades aren’t there. However, every trader, experienced or not, has already opened a position while in this context, probably obtaining a series of losing trades that reduced his/her capital. Under these circumstances, we have to stay disciplined and away from the Market.

We’ve seen the following scenario happening over and over again and we can assure you that it is often the difference between having a positive or negative balance at the end of the month (or year):
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Education: the 3 Training Pillars

3PillarsTradingEducation

When it comes to trading the Financial Markets, many people have experienced a sudden rise followed by an even faster fall that led to a quick abandon of this activity. In general, it happens because they weren’t ready to manage this unexpected success or didn’t really know how it happened.

NBStraders’ main purpose is to provide you with the necessary knowledge so your path as a Trader is done by taking small but safe steps, therefore reaching consistently positive results in an activity that is not easy and requires huge commitment and effort from you in order to achieve the 10% of theoretical knowledge and 90% Discipline that add up to the 100% success.

This is why all our educational contents rely on the 3 Training Pillars as described below:
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The 3 differences between a Professional Trader and a Gambler

On this 1st article, we wanted to emphasize the main differences between the activity of a Professional Trader and a Gambler. After all (you’ll get used to this), it is all about discipline. Enjoy!

Here are some of the main differences between the mindset of a Trader and a gambler:

The Professional Trader knows his plan will work out if he sticks to the rules;

The Gambler just has no clue that a proper risk management and an adequate methodology could embrace the results he aims for;

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