In this educational article, I will share with you 5 simple tips that will help you not to blow your trading.
1️⃣Always Use Stop Loss.
Let's start with the obvious - with the stop loss order.
Never ever trade without that. Before you open your trade, plan in advance its placement, stick to it once the position becomes active and never remove it.
2️⃣ Manage Your Position Sizes
I know that most of you are trading with a fixed lot. That is a bad habit. You should measure the lot size for each trading position you take. You should define in advance the risk percentage you are willing to lose per trade and calculate the lot sizes for your trades accordingly, then.
3️⃣Avoid Taking Too Many Positions
Remember that in trading, quantity does not imply quality. The more trades you take, the harder it is to manage each position individually. I would suggest opening maximum 5 trades per day and holding no more than 8 trades simultaneously.
4️⃣ Avoid Trading Too Many Markets
The wider is your watch list, the harder it is to focus on each individual element inside. Do not try to control as many markets as possible, instead, narrow your watch list and concentrate your attention on your favorite trading instruments.
5️⃣Remember About Volatility
The more volatile is the market that you trade, the harder it is to trade it and the bigger stop losses you need to keep your positions safe. Remember, that the volatility is the double-edged sword. It can bring substantial profits, but it can also blow your entire account in a blink of an eye.
Following these 5 simple rules, you will make your trading much safer. Study them and add them in your trading plan.