Erroneous views on minimum depositsJohannes Röll 04 / February / 20 Visitors: 10
Erroneous views on minimum deposits
Learn to control what you have
The fact is, lack of capital is not the main problem of a loser. His main enemy is his limited thinking, thanks to which he can lose large sums as quickly and easily as small ones. He takes too much risk, and in this case, even the most effective trading strategy does not help. You should not invest more and more money, but fundamentally revise your money management system.
Forex money management
Capital management is a complex science that can be studied throughout life. Naturally, it does not require too deep immersion into the topic to start trading on the stock exchange, the knowledge of a number of basic principles is quite enough. This article is devoted to the problem that interests many novice traders - whether it is realistic to achieve serious success without having a large initial capital.
Beginners often wonder how much money they will need not just to start trading, but to have enough money to spare in case they fail to start. That is, they are sure in advance that they will definitely lose money at first. Is it realistic to achieve success with such an astonishing approach? If you want to earn in this profession, you need to competently manage any balance. Risks in each individual transaction should always correspond to financial possibilities.
Naturally, any beginner makes mistakes. As you gain experience, their number will decrease, and your confidence in yourself and in the chosen trading strategy will grow. Such learning takes a lot of time, but there is no need to fill these "bumps" by senselessly investing significant amounts.
This can be especially felt when trading binary options or in Forex, where brokers set not high minimum amounts to open an account. For example, you deposited $100 in your account and open a $10 trade. In this case, it is not the small capital that is to blame, but your attitude towards it, because it is not so sad to lose $10 out of $100, especially since there will still be chances to make a profit.
You will be more afraid to lose this amount and you will unwittingly approach the deal with more responsibility and deeper analysis of the asset. This point is described in more detail in the article about the amount of deals in trading.
Tips from .
Finally, a few practical tips for beginners.
Put only half of your profits into circulation. With the help of the received profit you can significantly increase your initial capital.
Raise the amount of transactions is allowed only if it does not contradict the trading strategy. It is not allowed to adjust the plan during the session. This should be done in your spare time.
Do not risk in one particular trade an amount exceeding 5% of the deposit (including brokerage fees). Experienced traders are usually limited to 1-2%. If you want to participate in big with money, we recommend you to hedge your trades by opening several positions simultaneously.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer