This article looks at the ways that you can avoid losses on the foreign exchange Singapore.
Trading on the foreign exchange Singapore market comes with a number of risks that you need to know about. When you consider all of these risks you will see that there are a lot of ways that you can lose money on foreign exchange Singapore trades. However, there are also a number of ways that you can avoid losing money on foreign exchange Singapore that you need to know about.
Always Treat Trading as a Business
One of the ways that you can avoid losing money on the foreign exchange Singapore is by treating your trading as a business. When you treat trading as a business you will not be as worried about the short-term implications of wins and losses on the market. You will be focused on the long-term impact of the wins and losses. This will be the same as the long-term progress that a business makes.
When you treat trading as a business you are also less likely to divert from your strategy and your goals. This is due to the mindset that we all work with when we deal with a business venture. There are very few people who will open a business for the fun of it without caring about the end results.
Keep Records of your Foreign Exchange Singapore Trading
Another way that you can avoid losses on the forex market is to keep track of the trades that you complete. Having a record of all the trades you have done and how they were completed is the best option. You should use a trading journal to so this. When you have a trading journal you are going to keep a record of the trades, the analysis that you completed and all the mental steps that you took to create the trade.
When you have this record you will be able to limit the losses that you face in the long run. The record allows you to see where you are going wrong with your trading. When you know this you can look at rectifying the problems so that you do not have the same losses in the future.
Use Reasonable Risks
The risks that you take on the market are directly linked to the losses that you make. The greater the risks you are taking the more you are going to lose on the market. You have to keep this in mind when you open trades and use leverage.
Leverage is the one risk factor that you have complete control over and you need to consider what you are doing. To use reasonable risks you have to use reasonable leverage. Expert traders state that leverage of 20:1 is more than enough for any trade. There are some traders who use extreme amounts of leverage and you have to be careful when you do this. If you use too much leverage then you could easily face a margin call on your account.
You also need to be reasonable about the amount your risk with each trade. The commonly used amount for risk per trade is 2% of your trading account. Of course, you can use a different percentage, but you have to be very careful when you do this.
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