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  1. #1
    kausad is offline Junior Member
    Join Date
    Aug 2017

    Default How can you secure your trading money?

    For the rookie traders, it is a matter of concern to save the trading money. Unfortunately, they do not have the idea of proper management. They must be informed about the safety of the trading money. If you can do proper planning for your business, it is possible to execute the trades securely. After a while, you can also manage a decent profit potential from the trades. This article will provide some idea to trade with a secured plan. We will touch on everything related to the security of the trading business. If you can trade properly with an effective trading plan, the control over any trading position will be possible. Thus a confused Singaporean trader can easily maintain quality with trading. At the same time, the trading edge will improve. So, you are getting benefited with security and improvements in the trading performance.

    So, read this article to get some idea on the proper management of the trading business. Accept the losses and try reducing the amount of money lost from the account. When you will be caring for the money lost, it will motivate you to improve a proper trade setup.

    Secure your risk exposures properly

    The first necessary thing of proper trade setup is risk management. For the risk exposures of the trades, a trader needs to know about using the least investment into the trades. Using a proper strategy like a 1% risk per trade policy, you can reduce the investment in your trades. To influence yourself to invest low capital into the trades, start with a small trading account. A $1,000 trading account will be decent enough for the novices. It will concern the traders to use less money into the trades. As there is not enough money in the trading account, you would think to trade as much as possible with a limited amount of capital.

    On the other hand, you would also need to work on the leverage for the trades. To reduce the tension while trading CFDs, the traders need to lower the leverage. You need a plan which can reduce the investment as well as the effect of the losing trades. If you think of too big of leverage like 1:100, it will impact too much with the losing trades. Agree with a 1:10 leverage to the investment on the trades and then you will be secured with the trading approaches.

    Trade with a proper position sizing

    To reduce the pressure of the losing trades, you also need to be secured with the approaches. It is not necessary to trade for every market conditions. Unless you can define a proper entry and exit point for the trades, do not execute. Spend time with fundamental and technical analysis so that you understand the market condition. Using both, try to ensure a proper position sizing which is suitable for ensuring pip gain. Unless your profit target (which needs to be a decent margin), do not trade with your money.

    Try to practice a proper market analysis and position sizing with the demo accounts. It would help to improve the skills of market analysis. At the same time, the trade setup will be improved with a motto of ensuring a decent profit potential from the trades.

    Do not trade without a confirmation

    As we mentioned, you cannot trade without ensuring the proper positions for the trades. If you can define the entry and exit points for the trades properly, a trade can be executed. Unless you find a suitable market condition, it is not wise to trade with your money. Even you must demo trade to improve a proper trade setup for secured trading approach. Beliving the profit potential of an uncertain market condition is foolish of the traders. You will not win profits with that kind of mentality.

    Instead of being skeptical, trade with proper confirmation so that, you can control the trades. Also, improve your market analysis skills to know the market conditions.

  2. #2
    FTS is offline Junior Member
    Join Date
    Nov 2018


    Sizing is one of the most complicated elements of trading process. Many traders fail just because they utilize wrong approach to sizing that leads to increase in losses.
    The issue of sizing could be divided into two parts:
    - defining the position size,
    - sizing up or covering the position partially (also known as "working with position).

    There are numerous ways to define proper position size. Newbie traders mostly use one position size in all their trades, but this approach quite often leads to underperformance. To my mind, it is better to calculate the position size each time to make sure it fits the best the particular situation. For example, it would be better to reduce position size during the high volatility periods. Position size calculation is closely connected with stop level - actually, position size depends on both risk per trade and stop level. If the particular situation requires to place a wider stop, trader should reduce the position size to keep the same risk per trade otherwise it could impact risk-reward ratio. If one doesn`t know risk-reward and win rate ratios of his strategy, it is possible to find them out through backtesting using historical data. There are various tools for backtesting like Forex Tester, for example. Some traders also backtest their ideas using special algorithms but this approach would be suitable only for those familiar with coding. The results of backtesting would be helpful to improve the performance of the strategy including the choosing of position size.

    Each trader is interested in increasing his position size to get large profit. If the price moves in favorable direction, trader could add to the position to increase potential profit. At the same time, this tactic is always associated with substantial risk, so only experienced professional traders should attempt to use it. The main rule states that each additional position should be treated as a separate position. In other words, each additional part should have its own stop loss to eliminate its impact on the entire position. In no event trader should size up his position in losing trades since it could lead to huge losses. Averaging down seems to be efficient only in theoretical calculations, but in real trading process it almost always leads to unfavorable outcomes.

  3. #3
    Angel candy is offline Senior Member
    Join Date
    Mar 2016


    For secure trading you have understand the market rules and follow it. There are many management rules which every trader should understand, risk and money both are having their own importance so you should manage it.

  4. #4
    Ajes is offline Junior Member
    Join Date
    Dec 2018


    Personally I think risk management is the holy grail. Many traders that are blowing away their account do not use this rule. If properly applied with a good Forex Strategy, you will succeed.

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