Concentrate on capital saving at any cost
Thousands of people are investing money every day whilst others are quitting. This may seem confusing at first but if you look at this industry from a different perspective, it can be understood that losing the fund is much easier than developing a profitable career based on currency trading. The investors are blinded by the potential of the business when they begin to realize the vast opportunities that the sector can offer. As there is no supervisor to monitor their activities, this soon begins to lose track and within a few months, their initial deposit is lost. There is a dilemma in the community. This is namely, whether people should focus on making a profit or just making money consistently. The answer is that you should do neither. Without protecting your deposit it is not possible to execute any trade orders on the path to success.
This article is going to share some harsh words about the practical scenario of currency trading that many choose to deliberately ignore. When people don’t listen to the indicators, follow techniques, and forecast movements derived from the analysis, mistakes begin to occur. We hope our readers will understand the importance of preserving the capital rather than simply focusing on increasing profits by undertaking perilous decisions.
Guidelines for the stock traders
Some of you might be trading the stock with great hope that you will earn a huge amount of money. But you need to buy stocks with the best broker so that you don’t face any technical problems. If you chose to trade with the low-end broker, you will always lose money and it will make things complex. Being a currency trader, you focus on the safety of the capital. As most of the stock players are big players, we highly recommend trading the market with the best possible broker like Saxo. By doing so, you can protect your capital.
Without money in the account, there is no trading
This is the ultimate truth in considering. Do not believe what the brokers are saying even if they promised to reward you with 10 times your initial deposit. Simply trade in demo account and as soon as the balance is over for the losers the deposit amount, there will be no way to execute any further trades. Thus path automatically undermines any authority of the investor. There is a common practice among the professionals to withdraw money every, if not months to make sure that they are not running out of cash flow. If the same technique is followed by all the traders, even if the balance turns out to be empty, previously withdrawn profit can be used to redeposit money.
As the market is unpredictable, there are always chances of losing capital. Try to make a small change in the existing formula and focus on saving your capital at all costs. Never mind the pop it because it is the logical consequence that only comes after or opening a good order in Forex.
Profit accumulation is required for developing a successful career
If there are 10 shares every month and only six of them can generate substantial revenue the profit needs to add up without losing the primary balance. The infamous 90-90-90 ratio implies that 90% of investors lose 90% of their initial deposit within their first 90 days in Forex. We do not want that to happen to any of the investors that is why we are emphasizing or preserving the plant at all costs. Even if you are having a successful streak, if the main account is drying out there is no way to survive in this competitive sector in the long term. Keep a diary and maintain a strict routine that is not validated by any means.