Want to Use Trading Guerrilla? Here are the Terms and Examples
You just heard the term trading guerilla? Or familiar? Yes, trading guerlilla is faster than scalper. The timeframe used is very small and the profit target is only a few pips. Do you want to use trading guerilla? Listen to the end of this article.
A successful guerrilla trader has the following characteristics:
The forex market is very volatile and successful traders have the ability to make quick trading decisions so as to maximize profits and minimize losses.
Successful traders should be able to control emotions well when they get a profit or when they experience defeat.
Successful traders have enough capital and know exactly how much risk will be received.
Have sufficient trading experience or less for several years.
Example of Guerrilla Trading
Consider a guerrilla trader with an initial capital of $ 50,000 to use as a margin in a forex trading account with a large forex broker. The broker requires a margin of 1%, which means that it offers leverage up to 100 times. And also offers spreads up to 2 pips for EUR / USD and commission fees starting at $ 10 per lot of transactions.
The trader has 10 orders on EUR / USD pair with size 100K contract where 6 of them get average profit 12 pips and 4 others have loss or loss of 6 pips average. On that day, the EUR / USD currency price is around 1.3000.
Each pip is worth $ 10. So the calculation of profit and loss trader (P / L) is as follows:
Profit earned = 6 x 12 pips per transaction x $ 10 = $ 720
Losses earned = 4 x 6 pips per transaction x $ 10 = $ 240
Gross Profit & Loss = $ 720 – $ 240 = $ 480
Trading commissions: 10 transactions x $ 10 per transaction = $ 100
Net Profit / Loss = $ 480 – $ 100 = $ 380
This is definitely a very simple example of trading with guerrilla trading techniques. However, as in the example, the success of a trading strategy relies heavily on a trader’s ability to close a loss or loss position quickly, and to let the profit position float to produce a profit that can offset any losses.
A few tips if you want to use the guerilla trading techniques that must use stop loss or small cut loss, while short-term trading trend, trying to become a professional trader by limiting losses.
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