Protect Your Investment From Market Volatility

Discussion in 'General Trading Discussion' started by Joseph Brown, Aug 28, 2017.

  1. Joseph Brown

    Joseph Brown New Member

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    Do you know how the Forex market will work when you are going to place your trades? You can take a wild guess but when the trade goes in the opposite direction, you will lose your money. You may also lose some money from your account. But there are also chance that you will blow up your account in Forex volatility. This is why there is a section in every Forex websites and also in the education of Forex masters, protecting your money. If you do not know how to protect the most precious things of your trading career, it is fruitless to enlighten you about the financial market. Money is the most important part of your trading. Even before you think you are going to trade Forex, you will always look at your account to see if you have that much amount of money in your account

    In our article, we are telling you some tips and giving some honest advice on how to keep your money safe from the market volatility. Do not get blinded by the marvelous lives of the successful Forex traders. You have only seen their front lives but you do not know their history how hard they have been tried and still trying in this financial and investment world to make a profit. The professional Swiss traders are always more concern about their investment rather than making a profit. They know very well, if they can protect their trading capital from the wild swings of price movement then they can easily make money.

    Always trade with small amount: You may be the son of Bill Gates but that does not mean you can trade the market with thousands of dollars. Before you can make money, you need to understand how to make money. Starting with the small account is the first step. When you have successfully made your profit consistently, you can move on to the next stage and invest more money to grow your account. You might have an extreme level of success in demo trading but this doesn’t mean that you will have the repetition in your real account.IN real life trading you have to deal with your emotion in CFD trading. Many traders have lost their whole investment due to excessive risk. Being a currency trader, you need to find a stable trading system where you can take management loss. Losing trades should be embraced by the traders in a systematic way. Always make sure that you are not risking too much in a single trade and keep your risk exposure level less than 2 % in each trade.

    Use organic profit to invest in Forex: After traders have been making profit successfully, they most often invest more money in their account. It is a mistake in Forex. You should not take risks for more of your money. You may never get it back. You always need to protect your money and the best way to do is by growing your account with organic profit. Use the profits that you have earned from your trading to investing in this investment world. If you still make lots and empty your account, it will be only your profit and not your money. Learn the art of compounding your profit to increase your trading deposit. Simply aim for high-risk reward trade and use a logical stop loss. Instead of taking readings from the indicators learn the proper art of price action trading system and trade the keys levels with reliable candlestick pattern. But don’t get fooled by seeing the reliability of this trading system. Always stay disciplined and trade with low risk.
     
  2. kirtimeliwal

    kirtimeliwal Senior Investor

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    The market is volatile and we can not say anything accurately about the market. In this case, an investor has to protect himself by following latest trends, daily updates as well as expert recommendations. It will help him to stay updated with market news and he can take the right decision at positive and negative situations.
     
  3. gowiththeflow

    gowiththeflow Senior Investor

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    I tend to think that you dont really "learn" about the markets until you have serious money invested and your bum starts to twitch at the slightest movement in stock prices/exchange rates. It is easy to gamble $100 but would you gamble $10,000?
     
  4. Mike Hills

    Mike Hills New Member

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    Among the list of what to do to protect us from market volatility, trading in a small amount is very effective for me. It's not hard to let go once you lose the trade. Although your goal in trading is to be successful but loosing is part of the game. It is also helpful to be with investing slack group that would guide you especially from getting the latest update of stock market trends.
     
  5. rakhi

    rakhi Active Member

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    Maintain the Right Portfolio Mix. The single most important thing you can do to mitigate risk is to diversify your portfolio. Have Some Cash on Hand. Those who are already retired have to maintain a delicate balancing act. Be Disciplined About Withdrawals.
     

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