How to Minimize Trading Risk
Everyone must have their own strategy for transacting in the forex business, with the progress of the times and the amount of information obtained about forex business education at this time, there are many ways that are used for trading that are proven to be profitable in the forex market. However, for beginners or those who do not have enough experience, in the application of trading strategy knowledge, they can also experience potential losses if not done properly. Beginner traders often make mistakes that plunge into the abyss of loss and even margin calls.
A common mistake that is often made by novice traders is to risk a trading position with too big a risk, trading with a big risk does not mean you will get a big profit. This is done because traders tend to want to trade with large lot sizes to obtain adequate daily profits. Traders are recommended to set a maximum risk of no more than 2 percent of the total account balance, in this context it is included in the science of money management on trading accounts. Here's how to minimize trading risk:
Capital Resilience
Capital resilience means the ability of a trader's funds to hold all open positions that experience a loss (floating loss) before the trader is hit by a margin call. The trader's goal in knowing the resilience of capital is to determine the amount of risk according to the capital.
Capital resilience really depends on the amount of leverage that the trader chooses. The higher the leverage, the greater the ability of the trader's funds to hold open positions that experience losses because the margin that traders need is getting smaller.
This is our short article, hopefully it will be useful for all traders. Watch the video below for more complete and detailed information!
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