How To Minimum Record In Forex Trading
Many early traders have questions about how to do it so that it's not easy to follow or minimize the risk in the trading forex. Ini mеmаng mеruраkаn tоріk уаng sangat mеnаrіk untuk dіреrbіnсаngkаn, karena trader раѕtі іngіn mеngurаngі роtеnѕі rugі hingga ѕеkесіl mungkin, tetapi jugа іngіn mеndараtkаn kеuntungаn ѕеbеѕаr-bеѕаrnуа dаlаm ѕеtіар trаnѕаkѕі. In fact, there is an expression "high risk, high risk (big return, then big profit)" in forex and investment trading activities.
Beginner traders usually look for answers to these questions in the wrong place. They may be looking for time frame graphs which are not easy to see, or which technical indicators are most accurate. In fact, how to minimize risk in forex trading has nothing to do with time frame changes or technical indicators used by traders. In order to be able to minimize risk and not be easy, traders usually get deep into risk management (risk management).
Generally, at first it takes quite a while to learn the topic, because they don't realize the various wrong decisions that were taken when just starting the trading forex. Beginners usually just understand the importance of understanding risk management, after realizing that rоfіt can't be done on a regular basis. However, don't worry, because this article will review 5 (five) ways to minimize the risks in the powerful and easy to handle forex trading.
Prepare Capital That Can Be Sacrificed
There was one fatal mistake made by almost all of the original traders. That mistake is using capital that cannot be sacrificed. It is possible to become an employee using half a month's income as capital, or a housewife using the last month's money as cash on hand, or as a cash advance. They do it because it will make a profit in no time. In fact, reality is not that easy.
After starting forex trading, they will feel tremendous pressure to profit so that the money doesn't go away, so they take bigger risks. Some of them will feel afraid of loss to the point of failing to take advantage of the fitness opportunities that arise. Some people are quite the opposite, feeling greedy to the point that too many make wrong trading decisions.
Financial advisors will usually advise you to use "cold money" only as forex trading capital. “Cold money” means funds that are not needed in the near future and can be sacrificed. For example, impromptu bonus money, THR, holiday allowances, raffle prizes, travel budget, funds that are available for cash tickets and the like, and the like.
What if the “cold money” is a small amount? Not ара-ара. Beginner traders are actually advised not to start Forex with too big a capital. Start with a small capital first (maximum USD1000). If you have succeeded in growing with small capital, then you will succeed in managing bigger capital. However, if small capital is losing money, then you may not be able to win more capital.
Know How Much Your Risk Tolerance Is
Before starting forex trading, you must know in advance how much risk you are willing to bear. How do you find out? Try answering the five questions below:
How old are you? The younger you are, the greater your risk tolerance is usually. Older people will have lower risk tolerance, due to limitations in learning and monitoring information.
How is your knowledge about forex trading? The smaller your knowledge, the smaller your risk tolerance.
How is your experience in the world of financial investment? People who have been in other financial investments (such as stocks or mutual funds ETFs) usually have a high tolerance. However, if you are never familiar with financial investments at all, then risk tolerance is usually low.
How much money did you sacrifice? In learning forex trading, you will also experience losses first. All professional traders are like that. So, you must first determine the amount of money that is ready to be sacrificed, then determine the capital.
Is your goal playing forex trading? If your goal is short term, then your tolerance is lower. Meanwhile, if your target is long-term for several years in the future, then you can tolerate a larger risk.
The five accompaniments will help you determine the various components that are important in risk management during trading. For example, regarding the amount of capital that is ready to be used, what is the cash/reward ratio that will be made, as well as a large number of trading positions.