Forex trading/financial markets have a high degree of risk. The most severe risks are losing all the capital we’ve invested in forex trading. In accordance with the principle and the key to the success of the world’s successful trader Bill Lipschutz, he stressed the need for the technique and how to manage trading risk. Then the question is now, what techniques and how to reduce the losses in forex trading and maximize profits.
If there is a technique that makes us continue without loss of profit at all, it’s all nonsense. Professional traders can lose let alone a novice trader. Now if don’t maybe fortunately continues, things that we can do is probably the reduce risk of loss.
Techniques and how to reduce the losses in forex trading
A mistake that traders often do is think how to profit as much as to the abundance and not thinking how if loss.? Once loss could be destroyed by all of our money. Let us together – the same build a correct mindset when playing the trading where a need for techniques and how to reduce losses in the forex trading before we started taking the decision to invest in financial markets the forex trading.
In order to reduce the risk of loss, there are some things we have to do something like this:
1. Understand and colleagues specializing outs the forex world.
Befits us as one who recently started a business, we have to know the ins and outs of the world of business it is. If you already know the right business world wants us to do, then start taking on the way on the way to invest. So too with forex. Forex is a financial business that anyone can log on and run the business, we live alone, who are not to go in and start doing business.
2. When trading never against the trend of the market.
What is trend ..?.
A trend is the general direction of the forex market. The trend is happening due to market sentiment that URsignifikan.dan continuously. While market participants such as buyers are more likely to buy, and then followed by other buyers, the price tends to go up.
What should we fight trend.?
Against a big trend, it’s the same case with the trend against a market in General. If we fight a trend, it is likely that the loss is enormous. So it is advisable not to go against the trend.
3. always support and resistance trading.
What are a support and resistance?
Support and resistance are an upper limit lower limit price and price. When a currency is experiencing a phase of distribution, prices will only move between support and resistance. This situation can we take advantage to scalping in the upper limit and lower limit.
4. Always be alert when nearing high news release.
No open position before the high news is released or there is high when trading news. It can reduce the losses while trading. If you type news traders, it’s good you learned to read market conditions through fundamental analysis.
5. Always follow the Big Bull.
Big bull is a big player for the so-called (big players), market makers, and banks. For reduce losses, it is advisable to always keep up with the big players (big bull). But do not let the great players played. Could be you are so confused.
6. always prepare a backup strategy and strategy.
Trading strategies in the same way as the strategy in the war. In trading we must have at least two strategies. One as the main strategy and one as a backup.
7. Wear a strategy of open and close are the same.
Sometimes the strategy of open and close different. But it is advisable to use the same strategy. It is aimed at making us always consistent and sportsmanship in the forex market. Don’t change strategy at any time could make a trader so wavering and lost the original purpose of the strategy was.
8. using money management Trading correct.
Money management (manage financial) is very important. Professional traders always tell you that trading must wear a maximum of 3% margin each time we open positions.
That’s approximately techniques and how to reduce the losses in forex trading is a fairly potent. Always learn and know all market conditions, can reduce loss we experience and maximize the benefits that we get.