Three simple rules to protect your trading capital
Everyone wants to make a consistent profit in the Forex market. Sadly, very few traders can make consistent profit in the retail trading industry. The majority of the rookie traders are losing money because they don’t know the proper way to manage their risk factors. They simply take unnecessary risks and blow up the trading account within the first six months. If you truly want to survive in this business, you must learn to trade like the professional traders in Hong Kong. Making consistent profit in the Forex market is not all hard. Just follow the basic guidelines and within a short period of time, you will be able to make a decent profit from this market.
Protecting your investment from the wild swings of the market is a very complex task. In fact, it takes a year to master the proper art of trade management skills. However, we will highlight some of the key rules of investment which you can follow to save your trading capital.
1% rule of money management
Leading your dream life based on currency trading profession is really hard. You have to push yourself to the edge to learn the details of this market. As a new trader, it’s very obvious you will take a huge risk to recover the loss but do you really think this will help? Following aggressive steps will force to overtrade the market. The moment you start overtrading the market is the very moment you start losing money. Regardless of the market condition and your experience level, you should never risk more than 1% of your account balance. Follow the conservative trading technique and stop taking more than a 1% risk in any trade. This simple habit will protect your trading capital in the long run.
Trade with a well-reputed broker
The role of your brokerage firms plays a great role when it comes to the investment business. If you visit https://www.home.saxo/en-hk you will understand why the pro traders prefer to trade with Saxo. The low-end broker will never give you premium access to the robust trading platform. In fact, you will always have to deal with technical issues which will make trading much worse. Before you fund your trading account, make sure your broker is well regulated and trusted by the professional traders. Analyze their past track record to know about the quality of their service. Never trust the low-end brokers even though they will offer you many lucrative trading opportunities.
Trade with a balanced strategy
Your trading strategy plays a great role in your trading success. You can’t make consistent profit in this market just by following your gut feelings. The pro traders use simple but effective trading strategy to make consistent profit from this market. Even after having enough experience, they never risk any amount they can’t afford to lose. Making consistent profit in the Forex market requires a perfect trading strategy.
So, how do you develop a perfect trading strategy? Though the question is very hard there is an easy solution. Open a demo account with Saxo and start trading the major currency pairs with a different technique. Losing or winning doesn’t really matter since you will be trading with a demo account. Try to create a simple trading strategy based on higher time frame analysis. The starting part of your development process might be very hard but within a few weeks, you will slowly begin to understand the nature of this market. Once you feel confident with your demo trading performance start trading the real money.
Leading your dream life based on currency trading business is really easy. But you must educate yourself properly and follow the above mention tips to protect your trading capital. Forget about the low-quality trade setups and try to find trades in favor of the market trend. Keep learning new things from your mistakes.