Tired of blowing up your trading accounts? Here are 5 essential tips to safeguard your account and never blow it up again.
1/ Embrace Risk Management.
- Risk only a small % of your account per trade
- Use stop losses to limit losses
- Understand and manage leverage
2/ Use Position Sizing.
Control the size, control the risk.
- Adjust your trade/lot size based on your account balance
- Don’t increase your trade size out of greed in order to make more money
- Proper position sizing is the key to survival in trading
3/ Follow a Trading Plan.
Trade by design, not chance.
- Develop a well-structured trading strategy
- Stick to your plan, avoid impulsive trades
- Regularly review and adjust your plan
4/ Diversify Your Trades.
Don’t put all eggs in one basket.
- Spread risk across different instruments
- Avoid overexposure to a single asset
- Diversification reduces overall risk
5/ Trade Within Your Means.
Only risk what you can afford.
- Avoid overcommitting your financial resources
- Trade with a comfortable amount of capital
- Financial stress undermines trading decisions
To learn more about How you can Start Trading for a living, sign up below for my Free Training on the “7-Steps to Financial Freedom through Trading”.