1. USE STOP LOSS COMMAND
The only way to help you avoid major risks in trading is to use stop-loss command. Your stop loss will ensure you only lose at a certain limit, which was determined by you before entering the command.
When you trade without using a stop loss the consequences are hard to imagine. Financial markets are unpredictable, so it's best to use your stop loss to take care of your account before thinking about making a profit.
2. PAY ATTENTION TO SITUATIONS SUCH AS GAPS, SPREADS, ETC.
These are the things that often come up in trading. Whether gap jumping or spread can bring you significant trading risks.
Gap jumps and spreads can happen for a variety of reasons, be it important news, or unexpected news. You should review past price history how these situations occurred and how price action was. And arguably the best way to prevent this from happening is to put your stop loss on.
3. UNDERSTAND THE MARKET IN WHICH YOU TRADE
This is also very important in managing your capital. If you understand the market in which you trade, there will be times when you are proactive in your capital management plan.
The things you need to know can be:
- The way the price moves
- Price volatility
- Influence with news like?
- What are the spreads and spreads on news?
- ….
Understanding the market you participate in will help you partially develop a more suitable capital management plan, be proactive in trading, and grasp price fluctuations will help you place stop losses more effectively.
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