MplusFX Learning
Knowledge Base
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Trader Mindset
The MindSet of all traders must be known. First of all, we need to look at the meaning of Mindset, which is the thought process that clearly separates professional traders from new traders. Most people like to think that trading methods, tools used, and indicators are the factors that make winning trades in the long term. But in fact, the most important thing is the trader's mindset.
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SWAP
What are swaps? The key factor in a swap is the difference that the broker calculates from the interest rate of the currency. That we have left open orders overnight (Overnight Interest), where the swap value of each broker will be set differently. Some brokers don't mind. Most investors will see it as a small matter. Because when holding the position overnight, the result of the swap calculation from profit or loss is very small. but don't be complacent. If trading targets are achieved and there is no plan, close the order in time. Most importantly, you should avoid holding sell orders on Wednesday night. Because of that, Saturday's swap has been lifted.
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Major Currency Pairs
What is the major currency pair? Trading Major Currency Pairs For investing in the Forex market, if you don't know how to trade currency pairs, it will be an obstacle. Much to investment because trading currency pairs will always help us gain profits from investments. There are two types of currency pairs: the main currency pair and the minor currency pair. Let's get to know trading major currency pairs, also known as trading major currency pairs, to help you. Learn more about the eight major slangs in Forex.
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Gap
Price chart "gaps" caused by price jumps or falls This can be caused by an imbalance of demand and supply in the Forex market. A gap is essentially a price fluctuation. which causes gaps. This is because the close of the old candlestick chart and the close of the new candlestick are very different. Especially during periods of extreme price volatility.
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Margin
Margin was deducted when opening an order (buying and selling) and will be returned when closing an order. In terms of margin, it is related to the leverage used. Margin calculation formula Margin = Price at the time of opening x Lot x Contract Size / Leverage In addition to the margin There are other values that you should know: The balance is the account balance. Equity is the current portfolio value. The free margin is the available balance. Margin Level Percentage of the Balance Relative to the leverage level, if it is less than 60%, a notification will be issued; if it is below 0%, the order will be forcibly closed. Or known as cleaning the port itself.
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What is 3M?
For 3 M, it is considered a fundamental principle in trading that it can be said that To be successful in trading, it must consist of 3M, which is M1: Method (trading method). M2: Money Management (Risk Management) M3: Mindset (Psychology) Let traders reach their goals. If one of the pillars is missing, Trading will not be perfect.
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Leverage
Leverage is a tool to increase investment leverage. • It makes it possible to purchase higher volumes of assets. Or buy more than the actual amount • which each broker opens the account. You will be able to choose how much leverage you want to use. For example, Leverage = 1:100. • It means that you can buy assets for 100 times your real capital. in the value of $10,000
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Investment Psychology
A good investment consists of: 1. the best trade system 2. Money Management 3. Investment Psychology (The Psychology of Investing) What is Investment Psychology? Investment Psychology (The Psychology of Investing) means the form, approach, and way of organizing the thought process for action. To promote profitability in your Forex market, in a simple summary, it is about practicing control of the two main emotions that make Forex trading highly error-prone: fear and greed.
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Golden Rule
of top investors all over the world. Interestingly. Therefore, I would like to share it with all my fellow traders. He said, "The best investors will never risk more than 2% of their capital on a single trade. And here is the formula for calculating the risk: Risk = Lot Size * Stop Loss * PiP Value / Capital The key is to calculate the Lot Size by controlling the risk to 2%, and when swapping the position of the formula to calculate the Lot Size, the formula will It came out as follows: Lot Size = Risk * Capital / Stop Loss * Pip Value Let's look at an example: Funding in the account = 5000 USD, the stop loss level is 35 pips, and the risk factor is 2%. Size of Lots is equal to size of lots = 0.02 * 5000 / 35 * 10 = 0.29 Lots This is the standard market entry formula. with the cut-loss level But when the current price is close to the stop-loss level, the number of pips must be reduced. Let's say that the distance between the price and the stop-loss level is 20 pips. Let's calculate how much the risk will be. Risk = 0.29 * 20 *10 / 5000 =.0116 or 1.16%
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