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 馃樄.
And lastly,
Well, that would be all for now.
Thanks for reading.,馃槉
