Tuesday, 2 September 2008

ForexGen | Risk Reward Ratio

Risk reward ratio is simply the amount you risk as compared to the
amount you expect to make.
If you have a stop in place which limits your risk to $1000 but when
your
trade is successful you expect to make $3000 then your risk to reward ratio is 3:1 From the table above you can see that if you only selected trades where you thought you had a 3:1 risk reward ratio, then even if you were right only 50% of the time you would still make a profit.

ForexGen Regulation

Preferably you want a company that is regulated in the country that it operates, insured or bonded and has some kind of track record.
I cannot advise you on which
broker you should use as there are just too many variables.
But as a rule of thumb, nearly all countries have some kind of regulatory authority who will be able to advise you.

Most of the regulatory authorities will give you a list of brokers that fall within their jurisdiction.
Although they won’t advise you who to use, you will be able to use the recommended
broker with some confidence.