Forex is a high-risk industry in which millions of people are investing money. While the sector may seem risky, there are certain tricks that can lower the risks of losing capital. This article will tell how to make money with low risks plan. It is more suitable for investors who want to start a career with a low deposit. The only thing to keep in mind is never to become greedy. If greed overtakes, it becomes an inevitable destiny for traders. It is the reason many wonderful investors quitting trading early.
Overlapping sessions are profitable
This is the time when different markets of the finance overlap. In this period, a large number of people gather and that increases the reward size. According to the professionals, this is one of the timeframes when windows to rewards are bigger. The next time you are planning a trade, look out for overlapping periods.
Keep the position size lowest
The trick is to keep the investment low profile. One way to do that is by lowering the position size. Thanks to a trading platform that sets the position size to the lowest by default. This option indicates, how much money is going to risk based on the deposit. An important reminder is to look out for the dangers. As the potential reward increases, the dangers do not stay the same. Most investors overlook the gravity of impacts that a big position size can have on the deposit. As long as you maintain a low profile, it is possible to avoid disasters.
Use Simple moving average
Finding the perfect trend in the Forex market is a very challenging task. But the pro traders in Hong Kong use a simple technique to find the market trend. If the price of a certain asset stays above 100 SMA consider it as an uptrend. On the contrary, if it goes below the 100 days SMA, execute short trade in your Saxo trading account. But make sure you are not taking excessive risks while trading the market. Use the simple 2% rule of risk management to protect your trading capital in the long run.
Test the plan in the demo account for flaws
Demo accounts are given for an important purpose, to allow people to get a taste of the live trading environment. All the patterns and volatilities that appear on the chart are as same as on live account. The only difference is the money. It does not matter as the hardest thing to do is learning the tricks of currency trading. The more time and practice is spent on the demo platform, it reduces the risks by a great extent. Do not mind the continuous failures. Every legendary professional has come a long way to achieve the dream, but the path was not smooth. Through odds and favors, it was possible to make the dream come true.
Learning from mistakes
The ultimate way to become the god of investment is by learning from experiences. It is like riding a bicycle that will never be understood until you try it. Take notes what went wrong in the last trades. It is advisable not to depend on the mind to remember the errors. The volatility can change and confuse the mind. Writing down the flaws that have been identified gives you a better chance of rewards. Even if it is a silly mistake, it should be noted in the description. It can teach more than anything in the world about how to perfect the strategy.
Never use highly promising methods
If anything sounds too good to be true, it probably isn’t. Traders fail to understand and become easy preys to scams. Every deposit is risky in Forex, even the brokers cannot assure safety. Even if a professional tries to convince you, do not be fooled. Losing control over the capital will end you career before it even begins.