You are here:

Five golden rules to protect your trading capital

Five golden rules to protect your trading capital

Developing yourself as a professional trader is a very challenging task. In fact, the majority of rookie traders are losing money in Forex since they don’t know the proper way to manage their risk factors. You might have a huge amount of money but this doesn’t mean you will be able to execute high-quality trades on a regular basis. Unless you learn the three major forms of market analysis, you are most likely to lose money.

You need to learn the proper part of trade management skills to save your investment. Losing trades are inevitable. So, let’s learn some amazing techniques which will help up to protect our trading capital.

Stop overtrading the market

Overtrading is one of the major reasons why the retail traders are losing money. The novice traders often think by executing more trades, they will be able to make more money from this market. But this is not all true. Just have a look at the experienced traders at Juno Markets. All of them are executing high-quality trades based on simple logic. They never place random trades since they know the associated risk factors in the trading business.

Stop trading the market with emotions

Emotions are one of the key reasons why the rookie traders blow up their trading account. Being a new trader, it’s normal to face some losing trades. Even after learning all the details of the market, you are bound to lose trades. This is where the rookie traders become emotional and start to take a huge risk. At times such aggressive steps might help them to recover the loss but considering the long term consequences, they are just ruining their trading career.

Trade with a high-end broker

The role of a brokerage firm is enormous when it comes to Forex trading profession. The pro traders always prefer to trade the market with the best introducing broker like Juno Markets. Trading the market with the high-end broker allows performing high-quality market analysis. Never think you can make a consistent profit based on gut feelings. You must learn the use of premium trading platforms to find the very trades. Before you fund your trading account, make sure you have access to a premium broker who has proven a track record in the financial industry. Though the high-end brokers might have higher deposit requirement it's nothing compared to their offered service.

Trading the high impact news

News trading is often considered the most profitable trading strategy in the world. But sadly, most of the rookie traders lose their entire investment due to using a news trading strategy. Being a new trader, it’s better to avoid trading the high impact news since it will significantly increase the risk factors. Never think you can earn huge amount of money just by placing trades prior to high impact news. No one really knows what will happen to the price of a certain asset. Being a new trader it’s better to avoid trading the major news since it will significantly reduce your risk exposure.

Stop using EAs and bots

EAs and bots are extremely popular among rookie traders. But do you really think such bots can make you millionaire? If this were true, no one would have lost money in the trading business. Try to learn the manual art of trading since it’s the best way to make money in the long run. Stop thinking about the indicators, EAs, and bots. If necessary, learn price action trading strategy since it will help you to make the better decision even at the complex market condition. Try to think like a professional businessman. You need to have a proper goal or else you can’t survive in the trading industry. The moment you start relying on EAs and bots, you are forgetting about long term vision in the trading profession.

The message from the founder

Click Here

Review our featured articles

Click Here

The Latest Articles
  • Trading with Inside Information More ..
  • Coping With Mixed Market Signals More ..
  • Growing Attention On The Slowing Global Economy More ..
  • ECB extends its Easy Money policy Until Mid-2020. U.S. Jobs data Weak. More ..
  • “Transitory” Replaces “Patience” The New Fed Keyword More ..