Investment Size and Technical Analysis

Investment size
A margin is a small amount of money required as a deposit to
ensure against trading losses. The smallest margin required for
Forex trading is $50. By having a $50 margin, you are able to trade
$10,000 worth of currency by buying or selling a currency pair.
This is how leverage comes into play. You only need to put up $50
to invest in $10,000 worth of currency, if the currency goes up 14
percent; you make $50 or 100% profit (or loss if it goes down).
This can only be done in a mini account. We suggest all traders
trade a mini account for an extended period of time. If you open a
full size account you must put up $1,000 margin to trade $100,000
worth of currency. In the event that funds in the account fall below
margin requirements, the Dealing Desk will close all open
positions. This prevents clients accounts from falling below the
available equity even in a highly volatile, fast moving market. This
is to your benefit because you cannot lose more money than is in
your account. In the futures and commodities markets you can lose
everything you own.
When placing a trade you are effectively borrowing $10,000. You
may have an open trade for up to 2 days interest free. You must
then pay interest on the $10,000 at a rate determined by your
trading account. With the 4xtrend system the interest is negligible
because when trades are profitable they dominate over the interest
payments. This is the reason we ignore interest. We also provide
the most examples for 15 min increments because these trades
almost never last 2 days (I have never seen it).

Technical Analysis
There are two classical theories to any types of investing.
Fundamental analysis looks at economic facts along with news
reports, public opinion and government policies. To effectively do
fundamental analysis you must have a college degree in
economics. This course does not teach Fundamental analysis.
Institutional investors are the typical proponents of Fundamental
analysis because they employ economists, bankers, and consultants
that deal with fundamental data.
The 4xtrend methods of trading are based on Technical analysis.
Technical Analysis assumes that everything you need to know is
already recorded in the price charts. Technical Analysis looks at
patterns that repeat themselves and pinpoints when to trade based
on recurring chart formations. The Rapid Forex trading techniques
show you many different entry signals. The most common
indicators are the Exponential Moving Average (EMA) and the
MACD.
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