Today we will know about Day trading with Michael Malcolm Walker. So let’s start, The foreign exchange market (the forex) can be a treacherous market to trade especially if you are not properly equipped for the job. You will want to give consideration to the following: the things and type of internet connection you have; the overall outlay of capital you can put at risk on this project, as well as the amount of capital you are prepared to risk on any one trade;your broker and the reliability of the trading platform; charts and technical analysis; good entry and exit signals; being aware of news releases affecting this market; the need to use a stop loss on each trade to protect your position; the cutting of losses if a trade works against you; and the compounding of profits.
You will ideally need a Pentium 4 desktop computer running Windows XP with a processor speed of 2.5GHZ and 512MB of RAM. The proctor wants to be at least 17″, but 19″ or bigger is better. You could get apart with a 56K dial-up link but broadband is usually far better in terms of stability. Some people like Michael Malcolm Walker have been known to trade this market successfully from a laptop which gives them mobility.
Michael Malcolm Walker says YOu will need a minimum of $20,000 risk capital to trade this market. “Risk capital” implies that it doesn’t involve money you require for living from month to month, and therefore you can employ it in the market for speculative purposes. The reason for the entry figure being so high is that it is unwise to risk more than 3% of your total risk capital on any one trade. On this basis, the most you should be putting at risk on any one trade is $600 ( that is $20,000 X 3%) using full lots. You could start with a lesser amount of risk capital by using mini lots and still maintain the maximum 3% loss of any one trade.
You will require to choose an agent wisely for two reasons: his financial stability; and the stability of the platform he provides. It is best to want a broker with a proven record in the forex market operating from a well-regulated country such as the USA, UK or Switzerland. This market was only opened up to experimenters in 1997, so forex agents haven’t got as long a history as stockbrokers. It is, therefore, best to choose on the basis of size -you are looking for a broker with at least 10,000 clients operating from one of the aforementioned countries. The functionality of the platform the broker provides is important for the execution and tracking of live trades. What you don’t want is a platform that always keeps going down at crucial moments in your trading day. In my experience, the platforms belonging to the major brokers are now very reliable although there might be a problem with the continuity of data displayed from time to time.
Before you begin your trading day, it is important that the day trader knows when economic news affecting the currency pairs being traded is scheduled to be released. There are various websites that do this. If you go to their Home Page, and click on the Calendar tab at the top, a page will open with the words “Weekly Economic Calendar for …..” on the top left hand side on which you click to take you to the page where all the scheduled news for the world’s major currency pairs are listed on a daily basis. The times of the news releases are given in both GMT and EST so you may have to compensate depending on which time zone you happen to be in the world. Knowing when the news is going to be released is crucial, because depending on its strength is may be sensible if you are in a trade that is making a profit. to take values before the news hits the wire, or at least bind up your stop.