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  1. #1
    kausad is offline Banned
    Join Date
    Aug 2017

    Default No trader should trade with desperations

    Desperations can come from only one thing which is the trading money. It is hard to lose a trade when you are investing your hard cash into the trading account. You will get more frustrated when the losses are too much to handle. A novice Singaporean trader can easily lose multiple trades due to improper trading skills and strategies. It is the reality for every single trader. Based on the survey, more than 95% of the traders lose their money in Forex. If the capital is borrowed from someone else, traders get more emotional and desperate with the losses. For those traders, it is very easy to fall for overtrading or micromanagement. If you experience the same, your trading account will not last very long. It will turn into a lost project within a month.

    We are here with this article to prevent desperation from getting into the nerve of the traders. There will be a few segments which are based on proper management of the trading capital. If you want to survive and ensure a proper trading career, read this article properly. When you invest initially in the trading account, try to be decent with it.

    Invest a small amount of money initially

    A trader needs to influence the trading mind to use the lowest trading capital possible. For each trades, the risk exposures must be like 1% of the trading capital. Moreover, the traders also need to use proper leverage to the lots. You may be enticed by the fact of leverage but the concept is different for efficient trading. You need to define a proper leverage ratio to ensure the safety of the trading account. According to the experts, it is safe to trade with 1:10 leverage to the trades. When you execute the strategy, the losses will impact less on the account balance.

    A proper risk management plan will help you a lot while trading CFDs. For example, the stop-loss and take-profit will get a proper reference from the risk management. The risk management plan will also influence the profit target. Therefore, the traders will get a proper reference for the position sizing for the trades. You can set the entry and exit points of the trades even before doing the market analysis.

    Never borrow money from obligations

    You may think of borrowing money from others to start a trading business. When someone sees the profit potential from Forex trading, he or she will start trading. In this case, it is not appropriate to invest from other sources of money. Not only other people but also the other obligations are needed to be avoided. You should not use your kid’s tuition fee or money from a mortgage. It increases the desperation of the novice trading mind.

    Instead of looking for other money sources, you should start with your own money. It should be the amount which you can afford to lose. As there cannot be any emotions playing with your trading plans, it is necessary to sort out the investment. It will increase the survival potential.

    Follow an efficient risk management plan

    When you can sort out the initial investment, it will decrease the urge of making a profit. The traders still need to use a proper money management plan for the risk exposures. It is necessary to sort out the investment into the trades. We have already mentioned the 1% money management policy for the trades. Following the strategy and also using proper leverage like 1:10, you need to define the best trades possible. Without any hesitation or stress, you can trade in the markets. The best trading approach is possible with risk management when traders can accept safe trading.

  2. #2
    FTS is offline Banned
    Join Date
    Nov 2018


    Thank you for such interesting rules, they are very important for newbie traders.
    Trader starting with small inital capital could reduce his risk, but his profit potential would be reduced to since it is quite difficult to get sufficient profit while trading with small initial investments. At the same time, trader could either use strategies with great risk-reward ratio or to use leverage provided by the broker to increase his buying power. It is also necessay to keep in mind that higher leverage is always associated with higher risk, so each trader would have to find a balance between risk and opportunities.

    It is great that you mentioned that trader should not borrow money to start trading. Many newbie traders are looking for any possibility to get initial investment capital and consider borrowing as one of possible ways to get it. To my mind, its not a good idea since it creates additional psychological pressure that could lead to losses and underperformance. Thus, according to the well-known rule, each trader should risk only with money he could afford to lose - it should be money he owns. Traders quite often forget about such issue as cost of captial: if you borrow money for the bank or other financial institution, you will have to pay interest. In this case your results should be substantial enough.

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


    That 100% right, you should never trade with feelings. Always focus on the market and with positive feelings so that you can have a good analysis which can result a good profit.

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


    The third point is a serious warning. Never Borrow money to trade Forex. The risk is too great to risk another persons money. Only trade with money you have and can afford to live without. So many persons have hurt themselves because they take too much risk with money they really needed.

  5. #5
    Burgy is offline Junior Member
    Join Date
    Feb 2019


    One thing that desperation leads you to is making irrational decision. When it comes to money, everyone is desperate to make more, but one needs to apply patience when it comes to Forex.

  6. #6
    Angel candy is offline Senior Member
    Join Date
    Mar 2016


    Every trader is having its own thinking and according to that he take decision in market. Many traders follow their desperation and many follow rules.

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