Forex Trading Techniques With Martingale, Benefits Or Loss? Have you ever heard of Martingale’s strategy? Or even try it? Martingale is indeed synonymous with gambling, many people use it to practice gambling. However, this method is often imitated by traders to achieve large profits. Hmm, is it true that martingale forex trading techniques are profitable or just a hoax? Now on this occasion, I will invite you to know more about Martingale.
WHAT’S GOING ABOUT?
Material that will be discussed this time are:
- History of Martingale
- How to use martingale
- Advantages and disadvantages of martingale
- Tips and suggestions for using Martingale
HISTORY OF MARTINGALE
Martingale was first discovered around the 18th century on the European Continent precisely in the French Country. Gamblers use this technique to win bets. Over time, martingale became popular among forex traders and many managed to make a profit through this method. Even so, martingale is not a strategy to win gambling, but rather how someone manages their capital properly when trading (money management).
In general, martingale forex trading techniques are strategies with multiple benefits. Besides being able to reap huge profits at Martingale, it can also cover total losses from previous trades through multiplying capital, so even though the amount of profit can be large, the risk of loss is the same, considering that each subsequent transaction increases the number of lots.
HOW TO USE
How to use this strategy is quite easy, but we don’t need to be good at analyzing charts. Suppose you trade 5 lots and then lose, now in the next transaction the number of lots is added 2-fold. When your transaction turns out to be profitable, the profit can include all your previously lost trade transactions.
- The method is more or less like this:
- One trade, enter 1 lot and then lose the
- second trade, place 2 lots and then lose another
- trade 3, place 4 lots but unfortunately lose another
- trade 4, place 8 lots and finally profit
THE PROFIT CAN BE SEEN IN THE DESCRIPTION BELOW.
Buy 1 lot = – $ 10
Buy 2 lots = – $ 20
Buy 3 lots = – $ 40
Buy 4 lots = + $ 80
So, luckily it can be more or less $ 10.
This method is definitely a profit as long as you have special funds to use this strategy. But the question is when?
AMD EXCESS STRENGTH
Similar to other forex trading techniques, Martingale also has advantages and disadvantages. Can be useful but also can be detrimental. Martingale can close all our previously lost transactions. Traders will be very relieved if the profits can cover all their trading losses in the past, so that traders do not have to suffer huge losses. These advantages made Martingale attracted by traders. Far behind profits, there must be weaknesses when a trader does not have the resilience of funds that are eligible to use this trading strategy other than that he suffers continuous losses after several transactions. Big losses can be experienced by traders. This large loss is the result of accumulated transactions carried out previously.
Martingale’s strategy is loved but hated by traders. It can even provide close all losing trade transactions but can also backfire when prices are not corrected. Even so, but there are valuable lessons that I can hmm maybe among them is also how we manage capital well. The concept of money management must be really understood and that is valuable learning.
Oh yes, some call this strategy 99: 1. This means that 99% of market conditions can make traders profitable, and the potential loss of 1% is greater.
TIPS & SUGGESTIONS
If you are interested in trying to trade using a Martingale strategy, there are a few tips you should follow.
TRY STRATEGY IN THE FIRST ACCOUNT DEMO
I personally feel that a demo account not only functions as a testing strategy but also functions for learning traders’ money management. Make sure we are “smart” managing trading funds and implementing money management, because Forex Martingale trading techniques depend on our caution in implementing money management trades.
Because trading on a demo account is free, you can determine how much money you want to trade, do a martingale strategy test for some time, yes 2 weeks to 1 month to determine whether martingale really works for you or not. However, Martingale Forex trading techniques are not suitable for all market conditions. Quiet market conditions are right for this strategy, trading approximately in the morning until noon.
PREPARE MORE FUNDS
This does not mean that those of you who have almost insufficient funds cannot use this strategy, so you can, given that the Martingale strategy is certainly profitable, but the question is when is it profitable? As long as you don’t make a profit, you must double the number of lots. Yes, in general, a trader can make a profit on the third or fourth transaction, but it is not impossible for a new trader to profit after dozens of transactions. If you want to prepare more funds safely, hmm for the amount of detail depending on your initial capital when trading. Or if you are still unsure, ask an experienced trader or analyst team at the broker of your choice.
USE THIS STRATEGY ONLY IN CERTAIN SITUATIONS
Martingale does not comply with various market conditions. I have discussed above the right time to trade with Martingale strategies. Sideways market conditions can be the right trading time choice for you, generally in the Asian session (yes if in Indo in the morning until noon). Another exact time is when the New York trading session (in Indonesia around 12 noon). Don’t look for risks by trading when the market is trending. This is because the potential for correction is very rare, even though it happened for a long time.
Besides martingale, there are also anti-martingale forex trading techniques. How it works, traders multiply their capital when they profit. That way, the benefits will be even greater. However, the potential losses are the same. Profits from anti-martingale strategies such as snowballs. The longer the ball’s rolling distance, the greater the benefits achieved. But still you have to limit the number of transactions. The reason is that if your transaction incurs a loss, the loss to be borne is not the amount played.
EXAMPLE OF ILLUSTRATION IMAGES
I am personally very happy when using this forex trading technique because this is done when we are in a profit position. However, anti-martingale techniques can only be used when the market is trending. It is not recommended to trade with anti-martingale when the market is sideways. Anti Martingale itself has 2 parts.
- Sequential Anti Martingale, which is a new transaction with a larger amount of capital when the previous transaction is profitable.
- Anti Martingale is disrupted, which means opening a new position with a larger amount of capital by closing the transaction when it is profitable.
Although able to achieve large profits, but this forex trading technique also has a weakness that is when the last transaction was affected by losses, the total amount of your previous profits will be lost. To minimize losses, it is not recommended to make the last transaction around the reversal area.
Well, hopefully this article is useful for you. Oh yes so that you can determine trading transactions more easily, try subscribing to the daily analysis from FOREXimf.com. The accuracy reaches 70%, not only is this service free or free. You only need to register, after that the analysis will be sent directly to your email every day. Click the image below to register, okay.