December 20, 2018 at 2:02 pm #1549
Investment is very important in Forex. If you cannot invest money, you cannot start trading and become traders. Many people dream of trading in Forex but they cannot invest the money that is needed elsewhere. The amount is very small and it starts at $10. Traders think they cannot get the chance of making a profit if they deposit a small amount of money and they invest big amounts. They start trading in the live account but they do not make plans to manage their investment. They lose money and their trading is closed. This article will tell you how to manage your investment without losing it. You will lose money in trades but that is a part of your learning. Your focus should be on saving your capital and if you can do this, you can become a consistent and successful trader.
Understanding the nature of the market
Understanding the nature of the investment business is the first and biggest challenge for new traders. No professional traders in the investment industry can say, they have the perfect trade setups. Making money in the retail trading industry is a very complicated task. You have train yourself to accept the losing trades and wait for the next potential trade setups. In order to become a pro- Singaporean trader, you must work really hard. Buy some books or go for the paid trading course. Without having an organized plan, you are not going to survive in this profession.
Some people often refer money management as the Holy Grail in the investment business. Many new traders in the options trading industry are making a huge profit just by following the advanced technique of risk management. If you know the proper way to assess the high-risk reward trade setups, you can easily lose trade and still make money at the end of the month. You have learned the language of the market to find great trades. Learn more about chart pattern trading and focus on the daily time frame. Try to keep things simple so that you can easily do the market analysis.
Do not risk big
The first rule of managing your investment is to keep the risks low. You may think you will place a trade with all your money at stake but do not do it. If the trade is lost, you will lose all the money and your account will be closed. It is an online platform where your account will be closed if you lose the investment. Take small risks and it will keep your capital safe. The traders do not understand and they try to make a big amount of profit. They place trades with high profit but the risks also get increased. When the trades do not go with the trend, they lose the money. Invest a small amount of money and place your trades. If you find a good trend and you think it will go in your favor for a long time, do not place the trades. If the trend changes, you will lose your investment.
Focus on money, not on profit
The secret of making a profit is not focusing on the profit. If you are always thinking of the profit, you can never make it. The capital that you have invested in your account is the energy. It will decide how long you can trade. If the investment is lost, you cannot place trades. Try to practice in demo account on how to manage the money in volatility and trade in live accounts.
Take risks in money, not on a percentage
Many traders set their risks in the percentage of their account. It is not a good idea. If you take risks in percentage, it will only take a few trades to run out of money. Take risks on money depending on the volatility. If you think this volatility is good, increase your money. If the volatility is not good, do not increase the money.
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