In the last article, we focused on the potential risks that a person might face if he decided to devote himself fully or partially to Forex or binary options. For convenience, they are divided into main groups. At first glance, they seem obvious, but precisely because of their obviousness, traders do not think about them and make mistakes. 90% of traders lose money not because a broker is to blame or trading is a divorce, but because of the banal desire to learn and create a risk management system. How to minimize the risks in options and forex, read on.
Learn to minimize the risks in options and forex
- avoid trading volatile currency pairs and do not trade when fundamental news is released;
- test your strategy and stop it when there are deviations from statistical indicators;
- Develop your own security system: stop level, number of simultaneously open trades, etc. The risk for one position is no more than 2%. Do not use martingale, pyramiding;
- do not understand the principles of the broker, market maker, do not know what ECN is, etc., do not even try to get involved in trading signals and social trading;
- Pass verification with a broker before making a deposit, withdraw the first profit. Technical:
- price noise is eliminated by setting a larger timeframe. Let it not always fit into the framework of strategies, but beginners should minimize risks in options using risk-free tactics, and these are hour timeframes and entering the market 1-2 times a day;
- Delays and predictions are eliminated by changing the platform, broker, Internet provider. Therefore, test on a demo account several brokers at once, choose the best one;
- Work with 2-3 indicators, combining candlestick, graphical, technical and fundamental analysis. Psychological:
- Practice developing your point of view. Check out specialized forums and discuss ideas often. “How many people – so many opinions.” Try to find arguments in favor of your opinion and do not criticize what others say;
- count only on your own strength and money. Before you use the stock broker, ask yourself why he needs it? What does he get in return? Behavioral:
- Self-discipline will help minimize risks in options. Line up your trading position and analyze mistakes. No emotion Loss – understand its causes, profit – remember what has been done correctly and repeat;
- if the strategy loss exceeds the statistical one, change the asset, time, instrument, or stop trading for a short period at all.
Conclusion. Trading on stock and over-the-counter markets is a difficult job that will bring in money if you want to make money. As in any field, here, too, you need to learn and gradually, step by step, climb the career ladder (that is, earn more and more). The first serious profit may appear after 6 months, or even after a year, but not after a week. Stay with the FxCash blog and we will help you become a professional trader!