Habits that reduce your Forex risks

There are plenty of blogs out there. Some good, some not. And there are thousands of publications talking about risk management. While many of those can be interesting to read, a very limited number of them offer practical suggestions for you to apply.

At FortFS, we encourage all our customers to be responsible from their very first steps in the financial world. For such reason, we believe it’s fair to share basic knowledge on how to protect yourselves from risk, volatility and bad practices.

So here are some super easy to implement advices:

Keep a trading plan

Before jumping into the world of brave traders making money, you need to have a goal. And more importantly, you need to know exactly how you gonna get there. A trading plan not only will serve you as a constant reminder of your objectives, but it will also help you keep efforts centered in a line directed to reach them. Moreover, registering your trades allows you to keep track of your own performance, which is a great opportunity to learn from your mistakes.

Double check your orders

Of course. Trading from home is super easy. You just log in and boom! You are on. But the fact that you are trading in pyjamas should not rest seriousness to the activity itself. Before placing an order, you should always recheck. It’s necessary to avoid stupid mistakes that could cost you lots of money. It’s just 5 extra minutes you have to spend. Do it. No matter if you believe you are robocop, you are human and you make human mistakes.

Take profits

When your position is going well, it’s a good idea to reserve some of that result before it’s too late. And trust us, it will be too late. The idea behind this advice is pretty straight forward: trend is your friend, but the relation soon or later will break down. So cover yourself before that happens. Take part of your profit and let the rest run until the end. Keep take profit and stop loss orders to prevent unexpected price movements.

Take money

If you are lucky enough to make profits, then you should reward yourself. No, not just so you can buy a present for your girlfriend or boyfriend, but also to start recovering your initial capital. Keep in mind that withdrawing money from your account would reduce your account balance. That shouldn’t be the case Withdraw small portions that will not hurt your position sizes or stretch you due to margin requirements.

Take a break

Believe it or not, having rest is an essential part of risk management. A tired brain is not sharp, which increases the chances of doing mistakes. If you are feeling exhausted, then it’s time to take a breather and enjoy a bit of your gains. No harm in it. Your account will thank you.

Source   Presented by Fort Financial Services
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