How to minimize your losses?
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 .
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.
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