Why you should save your trading investment

Discussion in 'Forex Trading' started by annysteven, Jan 11, 2018.

  1. annysteven

    annysteven UF Member

    Likes Received:
    When you are trading in Forex, you will have some time when you want to be a lot of money but your capital will not allow you to take that tare. Forex leverage can solve this and you can take a big trade in the market. If you think you will only go after money and you will not hear what the market is talking to you, you will never know what this market is all about. Profit is important in Forex but what is more important is your money. Money is like the elixir of your account. If you are a good trader and you have made a lot of money, the market will not understand and allow you to place your trades when you have no money in your account. When most of the people are looking to make money, you also have to know how to preserve your capital in Forex. This article will tell you how you can make your money in Forex. When most of the people are trying to make their profit, keeping your capital in your account is also another big work. This article will tell you how you can preserve your capital in the market. You need to give it more important than any other work in Forex as it is the only thing that is allowing you to place your trades in Forex.

    The professional trader's concept
    All the successful traders are more concern about their trading investment. Before they even place their trade they do extensive analysis to find the true risk factor for that certain trade setup. Unlike the expert traders, the novice traders are always looking to calculate their potential gain from the market. But you need to understand the fact that only 5% of the traders are making money on regular basis. So if you want to become one of them then you need to think like the professional trader. You need to think outside the box to become a profitable trader in the Forex market. Be more concern about your trading investment rather than profit factor.

    The professional traders are very knowledgeable. They are always placing trades in their Forex trading account with an extreme level of discipline. But even after doing all the hard work they are always ready to embrace their losing trades. You need to develop strong mental setup so that you can easily accept the losing trades and wait for the next trade setup. Never try to recover your trading loss with big lot size trading since it will increase your risk exposure. Always trade within your comfort zone to save your investment.

    Take leverage when you know you can make it
    Leverage is a double-edged sword. If you do not know how to use it for your profit, you can cut yourself. Most of the people like to know how they can make their profit in Forex and they think leverage is their answer as they have the small account. If you use leverage wrong, you will find it very hard to preserve your capital in Forex. Most of the people like to take leverage and blow their account.

    Always take fewer risks
    Do not be brave and take risks that you cannot take. If you take a lot of risks in Forex, do not take bigger risks. You are trading in this market for the long-term and taking bigger risks can close your account when you have lost all of your money. This market is very hard to predict and even the professionals cannot solve it. If you do not know how to make your profit, do not place your trades and take risks. Wait for a chance when you know you can have your profit. There will be always the risks of losing money and your risks to reward ratios can save you from losing all of your money.

Users Viewing Thread (Users: 0, Guests: 0)