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The best way to manage your trading capital

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  • The best way to manage your trading capital

    Opening a trading account is one of the easiest tasks in the world. With some basic documents and a bank statement, you can easily start to trade the market using a high leverage trading account. But this doesn’t mean the majority of the retail traders are making huge amounts of money from this market. In fact, more than 90% of the traders are struggling to save their investment. You need to have a decent knowledge of risk management policy or else it is just a matter of time before you blow up your trading account. Let’s learn the amazing method by which the professionals are making a profit without wiping out their trading account.

    Learn to trade in a demo account

    The first thing you need to do is to learn to trade by using a demo account. Stop starting to trade the real market without even knowing the risk factors in trading. You have to understand how complex this market is. Unless you have complete knowledge of the three major factors of the market, you are most likely to lose your entire investment. Why wasting your real money when you have the opportunity to learn to trade with a demo account. Take advantage of modern technology and try to create a balanced trading strategy. Work hard and learn from your trading mistakes so that you don’t have to lose real money.

    Learn about the fundamental factors

    The majority of the traders start to trade the market after learning the technical details. But technical sectors are just a part of this profession. You have to understand the fundamental factors of this market and execute a trade with the best introducing broker Forex. The pro traders prefer brokers like Juno Markets since they always share valuable insights about the global economy. So, stop trading the market based on technical parameters only. You have to find the perfect balance between technical and fundamental details to make consistent profit from this market.

    Trading with your savings

    The professional traders always suggest not trading with money that you can’t afford to lose. No matter how well you understand this business, there is no assurance you will be able to make a consistent profit. Even after creating the best trading system in the world, you might have to lose a few trades in a row. Losing or winning is completely random and no one has control over it. But if you trade the market with managed risk, there is a good chance you will make a decent living out of trading. Being a fulltime trader, make sure you are not trading the market with your last savings. Always have a backup plan since massive chaos in the global economy can result in heavy loss.

    Learning to trade with the trend

    There are thousands of ways you can trade the market. But the smart traders always prefer to trade with the market trend. Trading along with the market trend is one of the easiest ways to protect your trading capital. Most of the time the market tends to move in favor of the long term trend. So, try to analyze the daily time frame and use simple trend line tools to find the long term trend. Stop trading the lower time frame data as it never gives the overall picture of this market.

    Trading is an art. You have to be cautious with your trade executions or else it won’t take much time to blow up the account. Learn more about money management technique and try to follow the conservative trading strategy. Stop looking for quick profit since it always results in a catastrophic disaster. Consider trading as your business and look for long term profit. Forget about the low-quality trade setups in the lower time frame. Ignore them and wait for the best trades in the higher time frame.

  • #2
    Here are 7 money management tips for day trading.
    Tip 1: Have a Max Dollar Stop-Loss. This takes discipline to administer. ...
    Tip 2: Find Trades with Solid Risk/Reward Ratio. ...
    Tip 3: Don't Average Down. ...
    Tip 4: Take Breaks. ...
    Tip 5: Avoid Higher Risk Trades. ...
    Tip 6: Stick to Your Niche. ...
    Tip 7: Avoid Vengeance Trading.


    • #3
      Protect your capital investment with a solid risk management plan. Risk managing is the key to successful trading. - I decided to start fx trading because of the positive reviews from experienced traders. And COVID-19 gives you a great chance to start earning online.