Due to the nature of the forex market, it’s easy to make or break your trading account depending on how you trade, and the nature of the trade. And because human beings are sensitive and emotional it’s quite easy at times to practically hand all your money over to the market by overtrading. Here are some ways that you - as a trader- can ensure that you don’t end up breaking your trading account all for one trade.
Know What you’re Looking for in a Market
To make sure that a trade doesn’t end up breaking your account, you need to know the functions of the market well enough to understand and predict its changes. You have to understand yourself enough to know how you want to use the market to your advantage while trading.
Refrain From Trading Emotionally
Once a trader wins a trade and gains profit, his demeanor tends to change, he starts to think that he’s an undefeatable big shot and nothing can ever drag him down well this over confidence is exactly what brings most traders down. Instead of letting feelings of greed and cockiness get the better of you, you need to remain immaculate in your behavior no matter how many losses or profits you might have made previously.
Do not Take too Many Risks
The euphoria of winning a trade often blinds traders and makes them take on opportunities they wouldn’t normally take because of all the risks involved. The more risks you take, the more potential there is for a loss, if you’re uncomfortable with the amount or volume of risks you’re taking its most likely that you’re setting yourself up for a loss.
- See more at: https://www.hiwayfx.com/forex-articles/how-prevent-trade-breaking-your-trading-account
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