When traders trade in their account, they do not realize the importance of saving the capital. They think of making a profit and all their focus is on making the money. If you do not save your capital, you are going to lose all your money. There are many successful traders who have lost their career but they had money and they can invest again. This article will give you some tips that will tell you how to preserve the capital. Remember the profit is important but you need to keep an eye on the money as well. If you have learned all the strategies but you have no money, you cannot place the trades. This market does not give you a second chance to make your profit and you need to be very alert when you are placing the trades.
Blowing up your trading account
Do you know why the majority of the new Singaporean traders blow up their trading account? They simply don’t follow the basic rules of investment. The majority of the reputed brokers like Saxo are now offering high leverage trading accounts to their retail clients. So executing trades with big lot size is not an issue for novice traders. They simply try to secure big winners by taking a huge risk. At times such aggressive trading system might work but eventually they blow up their trading account due to few losing trades.
So how do you save your investment? You need to follow money management plans regardless of the quality of trade setups. Forex trading is nothing but an investment business. You have to follow all the rules to keep your investment safe. At times it’s better to wait in the sideline and it’s just a part of your trading profession. Making consistent profit is not so easy. You have to learn all the details of trade management to protect your investment. Learn to trade with a conservative method to save your investment.
If you blow out the money, you will nothing to trade with
The first reality in this industry is there are thousands of people learning how to trade. They do not know what they are doing until they begin to make mistakes. They learn their trades through the mistakes but these mistakes do not come free. They are costly and every time you make a mistake, you lose money. At the end of the days, you may find yourself you have nothing to trade with when you have learned how to trade the currency pairs. This has happened to many people and this is why you need to save the investment. If you think the trading is not for you, you are not good for investing and making money with currencies, you can withdraw your money.
Money is needed for survival
Ironically it is true in all spheres of our life. We have made the money an essential part where we cannot live without it. If you think you are going to keep on trading, you will need money for that. One advice is to trade in demo accounts. They will give you the patterns and the trend will be as real as the live account but you will have no risks. This is one good way to learn to trade without losing your capital. You may reach success but you need to go with your investment. If you lose them in trades, you will have no money.
You do not want to be an expert but broker trader
If you are always losing money but learning something new, you will be broker by the time you actually learn trading. Think of the possibilities and focus on saving the investment. You can practice in demo accounts to keep your money safe. It is very easy to lose all your money in Forex but you will not have the chance to trade if you do not have money you are not afraid to use.