After all, it costs a lot of money, so it's better to study it carefully.
I'll give you five suggestions:
One trick: make good use of the financial budget, and remember not to treat the funds necessary for life as capital. To be a successful foreign exchange trader, you must first have enough investment capital. If there is a loss, it will not affect your life. Remember not to use living funds as trading capital. Excessive financial pressure will mislead your investment strategy, increase trading risk and lead to greater mistakes.
Two measures: make good use of stop loss orders to reduce risks
When you trade, you should establish a tolerable loss range and make good use of stop-loss trading to avoid huge losses. According to the different funds in the account, it is best to set the loss range at 3- 10% of the total account. When the loss amount has reached your tolerance limit, don't make excuses to try to put all your eggs in one basket and close your position immediately.
Three strokes: learn to implement the trading strategy thoroughly, and don't make excuses to overturn the original decision.
The biggest achilles heel of trading is when you start to find an excuse not to accept the loss liquidation, thinking that the market may turn around at once. When you continue to think like this, you won't have the heart to end this position where losses continue to expand, but you will only lose your mind and wait for the market to turn around. Please remember a simple rule: don't let the risk exceed the initially set tolerable range. Once the loss reaches the initial limit, don't hesitate to close the position immediately.
Four strokes: record the factors that determine the transaction.
Record the factors that determine the transaction in detail every day to see if there are any news of events or other reasons at that time, so that you can make trading decisions, do post-transaction analysis and record profit and loss results. If it is a profitable transaction result, your analysis is correct. When similar or identical factors reappear, your trading records will help you make correct trading decisions quickly.
Five strokes: follow the trend, not go against the trend.
Remember the old general rule of the market: the loss position should be terminated as soon as possible; The profit part can be held as long as it can be held. Another important rule is not to let the loss happen in the original profit position. In the face of the sudden reversal of the market, don't close the position without profit, and don't let the originally profitable position turn into a loss.