Hello hivers, Its been a while since I have posted, though alot has been happening lately but it's all good. Today's blog is about risk management in Forex part2.
In my last blog, I gave the meaning of risk management and I also dropped few tips on how you could manage risk in forex and today I will also outline more tips. Like I said previously, risk management is the risk of loss or profit that may occur while trading. Other tips on how to manage these risk includes;
Have a forex trading plan:
I could also recall writing on "what are the common mistakes traders make in forex" and this was one of my points. Most traders do not have a trading plan and as a result of that , they tend to loose their money to bad trades. I will always say, have a goal for each day you trade. Your goal/profit to be achieved for a day could be 5% of your capital or more, but for each day you trade you must follow a plan. By doing this, you have reduced the high chances of risk involved.Manage forex risk by managing your emotions;
Controlling your emotions is one essential thing a trader must posses. Trading the financial market for me involves 30% skills and hardwork and 70% of emotions. Learn to always control your emotions, there might be wins as well as losses also.Always prepare for the worst;
Like I said there might be big wins, there might be looses. You might not always be lucky to go into profit all the time. When this happens I will suggest you leave the market for a while or maybe for that day to avoid you revenging the market and then making more mistakes. I'm speaking with experience 😹.
And lastly,
- Avoid opening to many positions in one currency pair especially on very volatile pairs and when you have a small account.
Well, that would be all for now.
Thanks for reading.,😊