Forex Trading Tips: Secrets of Secure Capital Increase
Anyone who has decided to start forex trading certainly wants his capital to develop. The question then is how to develop your capital without being exposed to risks that are too large?
Here are some tips that you can apply.
- Be patient
This is the most important key: patience. Remember that forex tradingis a business that requires perseverance, patience and discipline. This is not a business full of miracles. There are no blue fairies that come at night and give a profit doubling just because you have become a good child today.
Trading also requires adequate knowledge. Therefore you also have to be patient in learning every science, trading tricks and tips. Don’t be in a hurry, both in learning and making transactions. Just relax so you don’t get stressed.
- Do not be greedy
Greed is one of the great enemies of the trader and unfortunately it is related to the impatience of a trader in trading. In this case, there is a lack of patience in collecting profits for profit.
For example, you have already benefited according to the estimated target based on the analysis carried out. When the price reaches the target, what do you do? If you are the type of trader who applies the trading plan with super discipline, you will close the transaction.
But most traders will hope to get even greater profits. Is it wrong? No, as long as you have a strong reason for that.
You might expect greater profits as long as the desire rests on the right argument. For example: your target has been reached but at the same time you see that the key resistance (or support) on that day has been validated and significant. If that’s the reason, please move your profit target even further. In anticipation, activate trailing stop , so that if it turns out the price reverses you will not lose. By doing this, it does not mean that you are violating the trading pan , but rather adjusting the trading plan (being flexible, not rigid).
But if you hope for greater profits without valid reasons like the example above, then be careful because greed may have taken control of you.You cannot enlarge your profit target just because you are principled, “Anyway, I have to make a big profit today.”
- Fold it over comfortably
Please try to double the profits by increasing the number of lots by adjusting the trading plan.
For example, you have a capital of $ 10,000.
At the beginning, you have set a risk limit per transaction is 10% of equity. At the beginning, your equity is only $ 10,000, which means that every time you make a loss transaction, you will not be more than $ 1,000. If you see that Stop Loss should be placed at a distance of 1000 pips (5 decimal places) from the entry level , then you can open a position of 1 lot.
If you find that you make a profit, for example for $ 2,000, then your equity will increase to $ 12,000. Say then you see there is an opportunity to open a position with a Stop Loss limit of 1000 pips too, then at that time you can open a position of 1.2 lots. So on.
Thus, the risk you face for each open transaction will not be more than 10% of your equity. Risks are maintained, but the multiplier can be even greater so that your profit opportunities become even greater.
That is the way to enlarge your capital without the need to be haunted by risks that are also getting bigger. Are you interested in trying?