Forex saving money is like making money | byqaforex

Forex saving  money is like making money Trading losses are inevitable. Therefore, it's absolutely normal to hesitate. The good news is that you can learn to minimise risk so that most of your trades make a profit! According to statistics, 90% of traders' first trade is not successful. Most of them don't know how to deal with loss and leave the market disappointed. This is known as a shark bite. The rest take a deep breath and put in their efforts to reduce risk better. Risk management is the ability to reduce risks in the planning and conclusion of trades. Those who gain more experience tend to gain more profit.

These are the two basic rules that will guide you: Make an order using no more than 2% of your trading capital Before you enter the market, check your balance, examine the buy price, and set a Stop Loss level. Consider, for a moment, your balance is 500 USD, and your leverage is 1:500. This means you can trade in an amount up to 250,000 USD. One lot is 100,000 USD, which means one pip is 2.5 USD. Two per cent of your capital is 10 USD, which means you can afford to go down up to four pips. If you open an order for a smaller volume, the price of the pip changes.

Additionally, it's essential to consider the spread.

Set your allowable loss per month to 6% of your capital

The first rule simply protects a single large loss, while this rule protects you against a series of failures.

By following the 2%, you can get away with three unsuccessful trades per month. If you prefer to be even more cautious, you can further reduce risk to 1% and conduct six unsuccessful trades.

If you ever find yourself in this situation, it's best to take a break and re-analyse the situation.