How to manage your risk profile at reading
Managing the risk profile in trading is a very hard task. Thousands of investors trying to earn a huge amount of money but they are failing to do so because they don’t know how to trade the market with proper precaution. Since most of the brokers provide high leverage trading accounts to the retail traders, people are taking a big risk to earn a huge amount of money. But trading is not about taking a high risk rather it is how you will manage the risk factor. In this article, we will teach you the perfect way to manage your orders so that you don’t lose too much money like the majority of traders.
Lower down the leverage
The first thing you should do is to lower the leverage of trading accounts. If you trade with the high leverage trading account then you will be opening big volume orders which are very hard to manage. Though it can exponentially boost your profit factor in the industry, it also has the power to ruin your career. At the initial stage, you might not know how this industry works but you do have the chance to read more about this market. Open a demo trading account with a professional broker like Saxo so that you don’t lose too much money in the learning stage.
Trade with a good broker
You must trade with a good broker to boost your performance. People who are trying to earn money with the help of a low-end broker don’t have any skills. Get more info about the elite Saxo Bank and you will never set foot in the traps set by the low-end broker. You have to find a professional trading environment from the start since it will give the ultimate opportunity to manage trades like an elite trader. Never become greedy just by seeing a low-end brokers offer. You have to find a reliable broker who truly cares about your performance. So, study the features of the broker before you invest the money to trade in the real market.
Only 1% of the capital
You should be risking only 1% of the capital because no one knows which trade will hit the potential take-profit zone. People who are taking high risk are always under heavy stress and they don’t know how to manage the losing orders. On the other hand, people who are trying to earn a huge amount of money by taking managed risks, know the perfect way to ride a trend. They are not risking more than 1% of their capital but they can earn the money because they know how this industry works.
Don’t read the news
As a new trader, you should never be trading the news. The volatility of the market increases to a great extent when the financial news is being released. If you are not careful about the trade setup, you are bound to lose money. For the safety of the capital, you should be following a strategic way so that you don’t have to place any trade on the high impact news. However, you can learn to trade the major news by using the demo account. It will take some time but you can learn it from scratch.
Stop over trading the market
You should not be properly trading the market because if you are overtrading you will never focus on the quality of the trade setup. Many traders in the United Kingdom is making a huge amount of money just by placing quality. You have to think like the professional traders at Saxo since they know the perfect way to manage the risk profile. If you lose any trade, never try to recover the loss with an aggressive method. Stick to the rules so that you don’t lose too much money in the learning stage.