SPREAD AND CALCULATION : SUGGESTION FOR CRAZY RISK TAKER

One of the most risky strategy in forex is quick hit and run. It's refer to daily trader who do the trade shortly : enter the market then quit as quick as possible only in minutes, profit or loss, no hold any position. Of course, I'm not recommend this strategy and no one experts suggest this crazy strategy. But I see some beginners eager to try this completely trial and error strategy. If this bad choice is your choice, then prefer to use broker which have the littlest spread, if possible zero spread :-) but still trusted, because it will help you to rise your profit taking and reduce your loss possibility. Also I suggest you to put your Take/Profit and Stop/Loss order, soon after you enter the market to avoid unexecutable price when market move in quick.
The idea of my posting here is : what spread's impact for your trading strategy. This idea not only applied for crazy trader above, but also your trading strategy, specifically in use of Pending Order. Often we forget that the price between Bid and Ask is different about 3 point. Moving price is refer to Bid price : When we order Buy price it mean the price we get is 3 points higher. This condition also applied if we use Pending Order to enter market (not instant execution). For example, we want to order the lowest price to buy on 1st levet support, let's say 1.4000. Some hours coming when the price really move to price 1.4000 then rebound quickly. If we put Buy order exactly in price 1.4000, it mean we don't get the price because we order Buy price at 1.4000 which mean Bid price is 3 point lower = 1.3997, meanwhile the price only move to 1.400 before rebound (price 1.4000 in Bid, it mean Buy price only move down to 1.4003, not reach 1.4000).
Note that moving price shown in screen is Bid price (SELL) and Ask price (BUY) will be different about 3 points at average (some broker have zero pip spread with special conditions but other brokers even appliead 20 pips spread).

Wish always for your successful trading.

CALCULATE THE RISK : Start From Micro Account

To be a smart & wise trader is a long time process. It's possible to be a lucky man in your first trading, but it's not the aim because in your second trading may be your loss bigger than your first profit.
Open demo account first is reasonable choice before open real account. I strongly recommended to use Metatrader platform (most forex companies use it). Important Note : although you open demo account in Company A, but you have no obligation to open real account in that Company. The must to do is : Specify how long you want to learn in demo version (better periodically) then review the result. Many people too dare or too fear after try demo version. Whatever your conclusion after try demo version : dare or fear, my suggestion is to open real account with type MICRO account (or sometime called NANO account or MINI account).

If you able to manage your MICRO account, it's possible to change your limited budget into hundreds even thousand dollars. But how much your made deposite, stay to use your most successfull trading strategy of your micro account, do not change it only because you have more money. Always learn firs befor you made a change in strategy. Here my suggestion in trading your micro account :

• Use my strategy in step 1, step 2 and step 3 in maximum effort.
• Make a deposit that you can afford to loss (this is a golden rule)
• Trade with consistent amount of lot. For example, if you deposit $10, you must enter market with 0.01 lot or the littlest unit available (it's mean about 1 cent per pips).
• Use expert advise in wise and criticize way

Next post, I will show you the most simplest but accurate of my technical strategy I was used for more than 1 year. Be wise and always up to date your information.