Did you know that 90% of forex traders lose money due to a lack of preparation, knowledge, discipline, and poor money management?
Think again if you believe you have discovered a trading elixir that can keep your earnings youthful and muscular. This is because practically all traders blow their accounts at some time.
So, is there a way to do risk-free trading?
Yeah, it is, and it’s called risk management.
Let’s take a deep dive into risk management and how you can apply it.
What is forex risk management?
Risk management entails detecting, assessing, accepting, and/or limiting the unpredictability of trading decisions. Because forex trading contains significant financial risks, risk management is critical to successful currency trading.
Many traders who lose money trading forex do so because they do not apply effective risk management strategies. At the same time, inexperience and a lack of market understanding can also add to their losses if they are new to trading.
Risk management is often regarded as one of the most critical components of a successful trader’s trading strategy.
At Orfinex School, you can learn everything about fore risk management in detail.
Tips for risk-free trading
Now that you know what risk-management is, let’s take a look at some of the tips for risk-free trading:
Trade only with what you have
It may appear simple, but the first rule of Forex trading, or any other type of trading for that matter, is to only risk money that you can afford to lose. Many traders, particularly novices, disregard this guideline because they believe it “won’t happen to them.”
If you can’t afford to lose the money you’re dealing with, trading isn’t for you.
While many brokers offer a $100 or $200 minimum deposit to open an account, Orfinex allows you to open an account for free. No strings attached!
Take care of your risk per trade
Consider your risk for each trade as a proportion of your trading capital and set it at a cautious level; this is especially crucial if you are new to trading.
You should only risk a small amount of your trading money per trade; a decent beginning point would be no more than 1% of your available capital per trade.
The importance of stop-losses
Stop losses are also essential for a trader. Remember to include them when you place a trade order. They safeguard you from losses and allow you to earn. There are several strategies for establishing stop orders; you may pick the one that works best for you and use it in your trading.
With Orfinex’s MT4 platform, you can set stop-loss and take-profits in the blink of an eye.
If you are new to trading, you will need to learn as much as possible. In reality, no matter how knowledgeable you are about the Forex market, there is always something new to learn!
Continue to read and educate yourself on anything forex-related.
The good thing is with Orfinex educational section; you can learn all the market terms, which can help you master the forex.
Risk-free trading is only possible if you understand risk and money management. If you are starting in forex, you gotta keep your risk per trade to a minimum.
Orfinex provides traders with risk-free trading, so they can only focus on the trading aspect and not sweat about anything else.