Increase your equity not only balance

Default Increase your equity not only balance

In the beginning of Forex trading I was became happy when get some profit and my balance was increased. In this time I have trade without stop loss and found that my balance is increasing but not the equity. Very soon I realized what is happening. It was nothing than with my balance the floating loss is also increased so equity is not increasing. i have to consider a big loss to rectify this mistake.

Without increasing equity, only balance increasing is the sign of bad trade though it is closed in profit.
So I want to warn every newbie and also those who are as like me that

Increase your equity not only balance.

g hai tarding main ap ko apna blance increase karnay ki jaga apna knowlede increase karna chaya kuo kay agar humaray pass trading kay motalq jetana bi knowlege hoga humay os say otna hi fada or humara experance baray ga

This is a great post. Many traders who are proud of the increase in balance run into this trap. This is especially the case for signal providers. Basically we should only be looking at equity - thats the money we have - the balance is meaningless. Drawdown is effectively lost money, or the price we pay to the the market. It is not real money that we can get our hands on and use.

yes brother it is like that. if some one use stop loss then in a large movement of price his opposite trades are close automatically and only profit giving trade will ramain which ultimately increase the equity. hope you understand

apne kafi achi sharing ki hai or buhot he kam ki batay batae hai main bhi ap k bato say agree karta hun ........... humain sirf apne balance pe nahi balkay equity me bhi izafa chahye........

Equity is your account balance plus the floating profit/loss of your open positions:
Equity = Balance + Floating Profit/Loss,When you have no open position, and so no floating profit/loss, then your account equity and balance are the same.so increase your equity.

In my thinking that we are not focus onnthe leverage or equity. But we are focus onnthe market and under standing. So that we are good work.

Brother forex trading new trad ko chaya k wo soch samj k trading krain real m trading saay best ky koi market nahe ha m forex ko bhot like krta hn g. M trading ko like krta hn bhot

hum jab trade karty hain to humani demo ko use kar kay achy say ana ho ga is main boht say log kam kar kay achi earning hasi karty hain is main balnace ko dykhty oye or equtity ko dykhty hoye market main los kam karty hain