Many advice that we should always follow the trading plan such as: for each transaction, just place a 1% percentage on total balance, BUT the prolems for traders, especially new trader is that they can NOT control the emotion during the trading period. He would stop the trade for a little profit and let the loss run until the account is “burned”, so what I always try to do are:
Wait , wait and continue to wait for a potential trading signal from my own trading system
Count some simple numbers to know the trading volume for each trade, example: my balance is $1.000 and I would like to face a $1 risk, so it’s $10, so when looking at the chart to find some singnal, if a signal brings in a total potential loss more than $10, stay away it and continue to wait
When the opportunity comes, act quickly and always to put a stoploss order and take profit automatically.
Having good strategy in my view is the best safety point and to be able to create that we need knowledge, so basically the cycle starts from knowledge.
Undoubtedly knowledge is critical for ones success and this is even more crucial in the forex trading business thus we all should gather as much good information as possible which helps us in getting along the right direction of the market movement to make good number of pips.
For me understanding that losses in trading are inevitable was the defining moment in also understanding risk. Do try to limit it, but accept that a certain percentage of trades will be losing ones. It’s the ration between winners and losers that will make the difference.
Of course bro, so the traders could pay attention to this. However, I think trading no one is safe, no risk. Therefore the traders to pay attention to money management properly, so the risk is minimal.
Trading in the financial markets is surrounded by a certain amount of mystique, because there is no single formula for trading successfully. Think of the markets as being like the ocean and the trader as a surfer. Surfing requires talent, balance, patience, proper equipment and being mindful of your surroundings. The first step is to align your personal goals and temperament with the instruments and markets that you can comfortably relate to. Trading off a five-minute chart suggests that you are more comfortable being in a position without the exposure to overnight risk.
I just discovered a new terminal, while I was traveling in China called TradeQQ. This is a news provider terminal 100% free. You guys should check it out, I heard they have 2 million global users.
When making a payment to an individual, never transfer the money directly into their bank account. Use a secure payment site such as PayPal, where money is transferred between two electronic accounts, or pay by credit card.Whatever method of payment you are using, understand what purchase protection is in place should something go wrong. This is especially important when the value of the goods is very high as many online payments are not protected once you exceed a certain amount.The increase in fraud on online trading, auction and listing sites, combined with growing value of the goods we buy - cars, houses and jewellery worth hundreds of thousands of dollars - it is so important that we establish trust and traceability to stay protected.
Use a Paper Account Until You Have Made Several Successful Trades
Trading safely means understanding the market and the trading process. Anyone who is new at trading should use a paper or dummy account first, so there is no risk to investment capital while getting used to the market. These accounts do not make cash trades but rather paper trades that do not affect your investment capital. When you are ready, then switch to an actual trading account and risk your investment capital.
Learning is a continuous process, so you have to keep learning if you want to succeed in this field…
I explore various sources to keep myself updated on market trends. Newbie can also check that for reference…
there is a way to trade safely, in fact said method is so safe that in theory you should never make a loss and so simple it can be implemented into any system.
it is a holy grail, THE holy grail of forex
it is called BUY low SELL high!!
the idea is simple, in any time period the price fluctuates
even while a trend is progressing the price fluctuates
so when you see a signal, you move down 2 time period charts (ie 4hr->30min) and look out for when the price stops fluctuating against your order direction and starts moving with it (hint-your system will still apply here) and that’s where you place your order
effectively this ensures that the trade will at the very least cover your spread, and hopefully push through to make you money (or worst case break even)
hence you BUY at the lowest point and SELL at the highest point, never the other way around
Trading safely is trade with strict risk management and accurate analysis, but because as trader not always able making winning trades or get accurate analysis, hence here also need money management, which all profesional trader also they always trade with proper money management in trading.
Being an investor in SGX stock market, you need to have right guidance & long term trading recommendations to trade successfully. Investors with correct guidance have probability to make better earnings otherwise it might become a risky game to make you lose your capital in the market. Following are the points which will help you to develop a successful trading plan. MMF Solutions Singapore helps you with the right guidance given through experts.
