The principle of Forex is simple: buy - sell. And get income. For it to take place, the trader needs to learn how to buy and sell correctly. We will not talk about the need to learn this matter and heed the advice of experienced traders. Let's move a little further - to the stage of choosing a strategy for playing the exchange. Better than a break-even Forex strategy, nothing came up for beginners. If you follow it exactly, you can insure yourself against the drain of the deposit and not be disappointed in the currency exchange. You can call for help and an adviser, clearly tailored to the strategy.
What is a breakeven strategy?
Is it really possible to trade without fear of losing all capital? Break-even Forex strategy is a method of trading in the money market with a minimum of risk, leading to profitable transactions.
The essence of the strategy: the damage must be lower than the profit, and the result of the trade will be considered your "catch", equal to the difference between loss and profit.
Forex strategies for breakeven trading on the exchange differ from strategies for earning a greater likelihood of danger. Professional traders manage to minimize risks, so that they also resist the possibility of loss with varying success. But if you are new to trading, it is best to start with a win-win strategy.
Is the Forex break-even strategy a myth?
Grail of Forex - the so-called break-even strategies. In this definition there is a considerable share of cunning. And in general, it reminds many of the advertising move. Speaking seriously, in a businesslike and honest way, clinging to the essence of win-win strategies, it is immediately clear: there can be no break even on Forex.
The security of money on the currency exchange, like in a wallet, is always something threatening. But you can reduce the danger. Break-even strategies also help in this.
Why is risk profit?
Sometimes Forex is compared to roulette. On an exchange, risk and profit are tied. But if in the casino the ball is ruled by continuous metaphysics and Mrs. Luck, at Forex the scheme-strategy is still important. And the more financial danger arises, the more profit you can get. However, there are few chances for her.
Break-even Forex strategies only reduce risks.
Break-even strategy example
A risk-free Forex strategy can be presented in several ways. We give an extremely schematic trading method, but the principle of application will be clear.
Strategy outline:
- In MetaTrader 4, set the Fibonacci channel, set the indicator: levels -0.6666 and -0.333.
- We take into account the same number of points between orders. Levels: buy and sell, as well as the “Break-even” line.
- We take into account the price action and the general course of events.
In the last step, you already need to observe the market movement:
- The price moves up - we build a buy order by ten points, the same goes in sell. If a buy order with a minimum volume triggers, a purchase has opened. Up the price - we earn, falls - the oversel works, an order of 0.02 opens. If the price goes down, we get breakeven: -10 points with a volume of 0.01 and +10 points with a volume of 0.02. Anything below the breakeven level is profit.
- Suppose that the price did not go lower, but went to zero. A 0.04 purchase order is triggered. If the price goes up, it turns out -10 points 0.02 volumes of 0.04. These volumes cancel each other out at the breakeven level. A buy order generates +10 points profit of 0.01.
- The price fluctuated and went down - a sell order is triggered, more than the previous one - 0.08 lots. The total volume of 0.10 lots that compensate for the purchase. The range should be 15 points.The buy volume brings a loss, sell - fully compensates for its volume, because sell is twice as much. And at this level, breakeven.
How does the market work?
Forex does not insure investors with loans - everyone trades the money they invest. At least one lot. The dollar / euro pair determines the value of the lot.
Forex exchange is available for highly profitable transactions. Everything that is commonly called a "game on the exchange", as such, Forex is not. From Forex to investors - the field of activity of intermediaries.
Structure:
- Forex exchange;
- Pliquidity retainers;
- dealing companies;
- investors.
Individuals interact with dealing centers. They differ in capitalization, mostly do not contact Forex, compete among themselves, wanting to become the most attractive center for investors. More investors - more money will come to the dealing company.
The next intermediary link is counterparties or liquidity providers. They work with Forex, withdrawing money to it.
The dealing center, having collected money from investors, entrusts their management to the counterparty. The funds are transferred under a commission - this is the fee of the intermediary of the dealing company for the opportunity to turn a large amount on Forex. Moreover, counterparties work with several centers.
Upon completion of the transaction, most of the funds remain with the counterparty, the rest he transfers to the dealing center. Through an order to withdraw, the investor can receive money on a payment card.
Forex Strategy: a win-win and break-even trading
It is not enough to simply install an adviser or clearly follow a strategy to make money without risks. In order for the break-even trading strategy on Forex to take place, the investor will have to test a number of strategies that suit his style and method of trading.
Forex has repeatedly proved: it is not enough to be able to masterfully apply high-yield strategies - using financial policies that entail small dangers, you can count on providing long-term benefits without loss.
An excellent Forex trading strategy includes traditional hedging strategies in this direction. This enables the investor to organize the diversification of their own funds and to distribute the risks of transactions, which means that it provides conditions for insurance against losses and the likelihood of earning.
Forex: Internal Strategy
The hedging method is not limited to the break-even Forex strategy. Investors who want to increase their chances of income usually allocate their own investments in long-term strategies. You can get up to two hundred pips in an auction. True, such trades can be expected for weeks.
Related to this is the desire of investors to engage in intraday Forex strategies. For one auction, you can gain up to 20 pips, if you count per day, then up to 160 pips can be achieved.
The break-even Forex strategy as part of the intraday strategy has superiority in the ability to receive income in several trades on the same day: currency pairs are constantly fluctuating on the exchange.
Using Advisor
Break-even game on the exchange can be achieved using automated programs. The software is provided by robots and advisers. For a break-even Forex strategy, an adviser is one of the best options. He will enter into transactions himself when you do not have the opportunity to be on the exchange.
Advisers should respond to Forex signals, provide conditions for the preservation and increase of the user's deposit.
The algorithm of actions is prescribed by the creators of the software, and it is possible to provide combined schemes, multicurrency, etc.
The adviser can work independently, but sometimes traders use it as an assistant in monitoring the increase or decrease in positions and changes in the exchange market.
How to choose an adviser?
An adviser must be tested within the framework of your chosen strategy, and then “adjust” the settings.
When choosing it, it is advised to see reviews. And if you are a beginner, rely on a robot that can work in full automatic mode. All that is required is to provide the adviser with a trading platform. However, you should not rely only on a robot and wait for an increase in deposit. The program will easily merge not only a good income, but all investments if the settings are incorrect. In general, it is not a guaranteed, but also an option of impeccable Forex trading.
On the Internet you can find the rating of advisers with a description of the history, errors and results of transactions, as well as settings and tests.
Newbie Tips
Break-even Forex strategy is a reality, if you approach the matter with due seriousness. Without emotions and illusions, this is completely unacceptable in such a serious income. Whatever break-even trading strategy you choose, transactions must be completed strictly according to the algorithm, without excitement, even with a significant increase in the deposit. And do not put on the market an obviously unfortunate position simply because “it seems to work.”
Set goals - specific and price. Once the value has grown to what you expect, be sure to close the deal, not expecting a further rise. The danger is very great, and this Forex has repeatedly proved that the attractiveness of the stock trend can wash away the wave. Why wait by the sea for bad weather? In no case do not be greedy and take profits before it is too late.