Learning the art of trade management is a very complex process. The majority of the new traders in Hong Kong don’t know the proper way to manage their trade. They trade the market with huge risk and try to make a decent profit at the end of the month. At times they might get lucky and make a decent profit from this market but considering the long term consequences, they are most likely to blow the trading account. Being a new trader in the Forex market, you need to understand the fact that trading is all about risk management. Unless you understand the process of trade management skills, you will never make a profit from this market. Let’s learn the proper way to manage trades in four easy steps.
Step 1, deal with one trade
The new traders are always busy finding more trades. In fact, they have more than 1 trade running at a time. Being a new trader in Hong Kong you need to understand the organized approach in the trading business. Regardless of the quality of the trade setup, you should never have more than one trade running at once. It helps to manage your running trades in an efficient manner. Try to learn the use of trailing stop loss so that you can easily maximize your profit and make a decent change in your life. Trading is all about finding the perfect trade with proper risk factors.
Step 2, ride the market trend
You must learn to ride the long term market trend or else it will be really hard to make a profit in the long run. To do so, you must have access to a professional trading account. Feel free to visit https://www.home.saxo/en-hk since they always offer a premium trading environment to their retail clients. Learning to trade the market is an art. Once you know the proper way to find great trades, it’s your duty to focus on simple logic which will eventually help you to ride the market trend. Make sure you learn the use of Fibonacci retracement tool since it is one of the easiest ways to make a profit from this market. If possible, incorporate a price action trading strategy since it will make you a better trader.
Step 3, manage your risk factors
You might have extensive experience with the trading profession but this doesn’t mean you will take a huge risk in the trade. Trading is all about finding high-quality trades at the key levels. If you trade the market with excessive risk, it won’t take much time to blow up the trading account. Trading is nothing but finding the perfect balance between risk and reward. Try to find a high-risk reward trade setups since it will help you to make a profit in the long run. Before you execute any trade, make sure you are not risking more than 2% of your account balance.
Step 4, control your emotions
Many traders are still losing money even after following all the basic rules of investment business. Do you know the reason for such failure? The answer lies within their emotions. You can’t afford to trade the market with emotions since it will make things worse. You might win four consecutive trades but this doesn’t mean you will win the next trade. This is where the rookie traders become emotion and increase the risk factors. Leading your dream life based on the trading profession is really easy. But you must gain complete control over your emotions.
Learning to trade the market with managed risk is a very complex task. If you follow the above steps it won’t take much time to develop your trading skills as a currency trader. Always remember, you are here to make money in the long run. So, stop thinking about short term gains as it ruins your trading career. Think twice before you execute any trade.