Risk Management For Day Trading
In connection with the risks that must be faced if a trader wants to start investing in forex, special tips are needed to minimize, or even reverse the trader's position, which was negative to be positive again and make a profit.
Risk management is the most important thing in forex trading. Risks that need to be managed are risks that traders can prevent because they come from themselves, such as excessive expectations and a tendency to be greedy. In fact, to generate profits, traders must carry out risk management. This is important for all traders, from beginners to advanced traders. . Here are some tips and risk management that can be taken:
Cut Loss
Cut loss is the action of closing a trader's position against the movement of market prices. Cut loss is used to limit the losses experienced so that they do not cause even greater losses.
Switch
This action is similar to a cut loss, but the difference is that after closing a losing trader's position, the trader opens a new position in the same direction as the market price movement.
averaging
In this way the trader does not close the trader's position that has been opened. Then even traders add to it by opening new positions in the same direction, namely open buy again.
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