Who doesn’t want to become a millionaire in the Forex market? You might have extensive knowledge of this market, still, you might lose all the trades. Making consistent profit in the Forex market is a very challenging task. Unless you prepare yourself to trade the real market, you are bound to lose money. According to a recent study, we can state more than 95% of the retail traders are losing money. Having easy access to the online trading industry doesn’t mean you will become a successful trader. You must learn to protect your trading capital or else it will be really hard to make a profit in this market. Have a look at the experienced traders in Hong Kong. If you analyze their trading history, you will understand they have a common technique to protect the investment. Let’s learn four amazing technique which will help us to protect our trading capital.
1% rule of money management
Everyone knows about the 2% rule of money management. They use this technique to protect their investment. But this strategy is only for experienced professionals. Being a new trader, you should risk only 1% of your account balance. But this doesn’t mean you will execute 10 trades with 1% risk in each. It’s better not to have more than one open position. Unless you have extensive experience with the trade management policy you should stick to the basic rules of investment. Though this will limit your profit factor to a great extent this is the only way to ensure the safety of your trading funds.
Trade with the high-class broker
You must use the Saxo Forex trading account to trade the real market. Never try to trade the market with the low-end broker since you will face many technical problems. The low-end brokers might freeze your trading funds without giving any valid reason. Before you open a trading account, make sure you do in-depth research on the brokerage firm. A highly regulated broker will always try to offer you the best possible trading environment. Though they might charge some fees to offer you the premium trading platform still it’s better to trade with the professionals. Never step foot into the traps set by the unregulated broker
Trade with discipline
Without having proper discipline, it’s really hard to make a profit in the Forex market. You might be a millionaire but this doesn’t mean you will follow an aggressive trading system. Try to stick to your trading rules regardless of the outcome of your trade. Losing or winning doesn’t matter as long as you learn from your mistakes. As a currency trader, you need to train yourself to control your greed. If you ever trade the market with emotions, it won’t take much time to blow up the trading account. Take your time and trade the market with strict rules.
Following the herds
We all know the majority of the retail traders are losing money. So, if you buy expensive signals from the pro traders, there are high chances you will lose money. It’s always better to learn the art of manual trading system. Though things will be hard at the initial stage if you focus on simple logic, you can easily develop your trading skills. As a currency trader, you have to understand the fact, trading is nothing but your business.
Let’s give a simple example to make things easier. Have you seen any young entrepreneurs trusting their business in the hands of successful people? If this was possible everyone in this world would have given the responsibility of their business to a famous businessman in this world. Things don’t work like this in the retail trading business. You have to work hard and develop your trading strategy from scratch. Never trade lose confidence in you and you will get better at trading.