3 Buffers in Trading
Many people enter the world of trading because trading has a very tempting profit for traders. However, besides that trading also has a very high risk. Not infrequently many traders who are less successful in trading, but also many traders who are successful. The success achieved by traders has a very long process and has readiness before deciding to enter the world of trading. Here are 3 buffers in trading that can be applied by both novice and professional traders:
Trading Psychology
Trading psychology is a broad term that encompasses all the emotions and feelings a typical trader will encounter while in the market. Some of these emotions are actually useful and may be for a trader to embrace, but others such as fear, greed, nervousness and anxiety should be avoided. Trading psychology is complex and takes time to fully master.
In fact, many traders experience the negative effects of trading psychology more than the positive aspects. This statement can be seen in the premature closing of a losing trade, for example, due to the emergence of a fear of too big a loss, or simply doubling a losing position when the fear of realizing a loss turns into greed.
One of the most dangerous emotions that commonly occurs is the fear of missing out, also known as FOMO. The parabolic rise entices traders to buy once the movement has peaked, which causes enormous emotional stress when the market reverses and moves in the opposite direction.
Traders who manage to benefit from the positive aspects of psychology, while managing the bad ones, are better placed to handle financial market volatility and become better traders.
Money Management
Given the high risk that traders will face in the market, it is important for traders to have a proper fund management strategy. Money management is one of the important factors in forex trading related to risk control. There are many ways that traders can do in managing money, but the key is risk limitation.
Money management trading is the management of funds or models in a trading account. To be able to make profitable trades, traders must have a healthy margin account. Before making trading transactions, it is highly recommended to calculate in advance how much volume or lots the trader will use for transactions. It is recommended that traders use lots of no more than 10% of the capital. This will make margin traders healthier and safer to trade.
Be careful with group and parties on behalf of Wijaya Trading, we never accept investments or entrust funds to be managed from investors for any reason. Official contacts number of Wijaya Trading only use the 2 numbers above.
Comments
Post a Comment