Passion and control over the emotion is the key for trader during the trading time.90% trader don’t have control over their emotion and so did the losses.80% of the trader remain in buyer side hence if price increase booked the profit within the range but in the case if price comes down waiting for the price to increase and make huge losses. So stop loss is the key for every trader to earn profit. Every money saved during trade is actually erned.Markets have lots of opportunities. Every trader must have to come out of that tendency.
Profit and losses is the part of every business but the trading is skill which can be developed by using lots of market tools, analysis and considering fundamentals in mind and most important control over emotion.
Trading is the art and it can be developed by adopting trade with thumb rules of the market and daily practice. More we learn more we can take control over own emotion.
Tendency to earn money in short term will always cost loss of money as well as mental peace this leads to lost invested amount in short period if stop loss hasn’t been maintain. Disappointment leads to mental stress as well as people thinking to start that trading is not a ideal platform to earn the money.
HOW NEW INVESTOR CAN START TREADING KEEPING RISK FACTOR IN MIND?
Let’s understand investment strategy keeping risk factor in mind with simple example,
Mr X having $100 to invest for trading, he is new investor and has no knowledge about the risk factor of the trading. He wants to buy GBP against USD. Will he has to invest all $100 at one slot? Absolutely not it is advisable to invest 20% of the total money he has which is $20.
In case GBP start to depreciate what will happen if he invested $100 lump sum, let’s assume GBP depreciate 10% in week means he suffer loss of $10 in other case its loss limited to $2 and have chance to invest more amount at the lower level of the GBP.
This is the best way to minimizing the risk and protecting the capital by investing like this.
With this strategy we can protect our investment and can find good returns over the time.
For us every money saved is actually earned.
It’s our aim to providing you all support , make you self reliance and control over human behaviour during trading.