How to minimize your losses?
Consider some main factors to minimize your risks while trading:
- do not to overtrade because the main aim is to obtain absolute profit by placing high possibility deals but not to make as much as possible ones;
- do not use high leverage because sometimes it is hard to predict market movement. That`s why if market changes its direction huge leverage can lead to great losses;
- develop own trading strategy based on skills and experience;
- control your risks;
- develop money management rules;
- put Stop loss order to minimize possible losses.
"High leverage = More and fast profit" What do you think about it?
It will be nice if we are developing right kind of strategy with highly experience brokers, we can take guidance from the most desirable plans that will work for us.
I am using breakeven trading to minimize the lose, with this promotion I get insurance to my account if I get margin call.
Yes, I do use S/L orders.
For me it's the best way to limit my risks in the environment of heightened volatility.
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How to minimize your losses
During trading activity , after we open any order to the market , we will faced with the risk ,because actually price moving very dynamic , and among trader have plan how to minimize their losses , there are few way to minimize or losses that i know
1.Using stop loss , its most trader using stop loss to limit risk
2.Using trailing stop , its like as automatic stop loss if price move according the order , there area advantage and disadvantage using trailing stop
3.Using hedging strategy , its open opposite order since first order get floating negative , the main point to able minimize loses using hedging.
4.using smallest lot size , will be different risk if trader using big lot size with smallest lot size , and trader can combine it with stop loss or trailing stop also
Which one that you prefer , please share your opinion .
Thank you