Risk Management

Stop-loss orders

• This is one of the most effective tools for managing risks. It automatically closes your position when a certain price is reached, preventing further losses. Stop-loss can be set at a certain level from the entry point or as a percentage of your initial capital

Using conservative leverage ratio:

• If you are new to leverage trading or uncertain about market conditions, use a conservative leverage ratio. This will limit your potential losses while allowing you to gain experience.

Risk per Trade

• It’s important to determine the maximum risk per trade that you are willing to take. A common practice is to risk no more than 1-2% of the total capital on one trade.

Monitor your positions

• You need to ensure you regularly monitor your open positions and be aware of any movements in the market that may impact your investments. This allows you to better manage your risk exposure.

Manage your emotions

• Emotional decision-making can lead to poor choices and heightened risks. As such, you must develop a disciplined trading plan, apply your risk management strategies, and avoid making impulsive decisions based on fear or greed.

Educate yourself

• This is a must if you want to succeed long-term. Without the right knowledge and experience to apply your analysis and manage your risk, it can feel like you are riding a rollercoaster. That's educating yourself will ensure you have a much higher success rate with your trades.

Adjust your position sizes

• If the market is volatile, it's important to adjust your position size so you don't take on any unnecessary risks.

Have a clear exit strategy

• Develop a clear exit strategy for your trades, including profit targets and stop-loss levels. Knowing when to exit a position can help to lock in profits and minimise losses.

By following these tips, you can better manage your risk and increase your chances of success.