Most of the traders in Forex like to make money and their focus in all around the profit. If you are one of them you are doing a mistake in your trades. Money is more important than profit because it is what keeps you going in the industry. This article will tell you why you should focus on saving your money than making a profit. It will take some time to understand but if you go through this article, you will get the idea why the investment is more important than having the profit.
Do you know why the majority of the Singaporean traders are making consistent profit from this market? The pro traders are always trying their best to filter out the best trade setups. Even though the market nature is totally unpredictable yet the experienced traders managed to make a profit by following proper money management. Try to trade the market with high-risk reward ratio so that you can cover up your trading loss.
Learn to save your investment
This is a live industry where every trade you place is monitored in real time. This also says that if you make a mistake, you will not have the chance to keep your account open and place some trades. It will be closed automatically. It has happened to many traders because they did not know the money keeps the account open. If you lost your investment, you need to start again by investing money into your account. Focusing on profit is important because it is the reason that has dragged you onto this trading market but you also need to remember you have money at stake. If you do not want your account to get closed, always think how you can save money from the volatility and risks of trading with the currency pairs. One advice is never to trade with the commodities. They are volatile and their prices change without any news. Being an active trader in the exchange traded funds industry means you need to learn to save your investment. Stop following the herd as it never helps. Try to develop your skills in a demo trading environment and trade the market with proper discipline.
Without money, you cannot place trades
If you want to know if you can place trades in your account if you do not have enough money, the answer is you cannot place a trade. The broker always takes the commission before you place a trade in the name of the spread. They do not want to take risks because the professionals are also not safe in trading. If you have $100 in your account, always think of placing trades with only a few dollars and the rest will be safe. You need to develop some strategy to make the profit and also keep your investment safe. Thinking about how to make a profit all the time will not help you.
Money brings profit
When you make a profit, it does not get stored in a different account than your Forex. The money is the sum of your profit if you do not withdraw it from your account. Many people like to keep the money in the account and then place trades for bigger profit. Imagine you have lost the money, even if you use leverage to place a big trade, you will not get the same advantage like you used to get before because your risks will also increase by many times. It is the only money that can keep you safe.
Should I focus only on saving my investment than making a profit?
You need to do two things at once. First, you need to keep an eye to make sure that your account does not run dry and second you need to make sure you are not overemphasizing on your profit. Make sure the two balance and you can have a successful career in Forex.