The CFD trading industry is very intimidating. It gives traders a feeling sensation that allows them to increase the risk. But taking a high risk and trying to beat the market will bring down terror in your trading career. You have to slow and follow the traditional way of taking the trades. People in Singapore often try to take the trade with high risk and they intend to recover the losses. But such action is never going to work. To protect your trading capital, you must learn to deal with the trades in the most effective way. For that, you must know the key problem of trading. If you want to protect your capital and trade like a pro read the rest of the article with care.
Not being honest to yourself
The retail traders are not honest with themselves. They pretend they are doing well and always hide the fact that they are losing money. By pretending to be a good trader, you are limiting the chance of making consistent profit. You won’t be learning any new things since you will think you know everything. Eventually, the results from the trades are not going to be satisfactory and you will lose money most of the time. When you become honest you will be able to learn many new things. The professional traders will also give amazing tips that will allow you to make consistent profit from this market. Never get panicked when you are not doing things in the right way. Take a short break and try to sort things out. Follow the basic rules of trading so that you don’t blow up your account when you’re still in the learning state.
Assess your trading strategy
Many traders are losing money since they don’t have a valid trading system. If you trade with Saxo you will notice that you have a premium platform that allows you to assess your trading strategy. But you should not assess the trading strategy in the real account. Open a demo account and test the trading method and see how things work. If you feel confident with your trading approach in the demo account, you are good to go. But most of the traders will find a problem during back-testing their trading strategy. You need to overcome this problem or else you should take a break and ask a professional trader to help you out. Never trade the market without back-testing your trading method.
Are you overtrading?
One of the key problems of retail traders is overtrading. People execute trades too often and they lose a big portion of the capital. To be on the safe side of trading, you must learn to focus on the quality trade. No matter what, you can’t overtrade the market. If you start overtrading, it won’t take much time to blow up your trading account. Instead of taking the trade in the minute time frame time, try to find the trade setup in the hourly chart. It will allow you to improve your trading skills and it will gradually boost up the profit potential. Follow the safety protocols of trading and you will learn to take trades with discipline.
Are you following the money management rule?
You have to ask yourself whether you are following the risk management rule. If not, you should start following the risk management rule as it will protect the capital. People become greedy and increase the lot size to secure insane gains. But this is not the way of taking the trades. To be a better trader, you have to learn advanced money management techniques. It will help you to deal with losses in a professional manner. Most importantly, you will slowly develop the skills to deal with the complicated nature of the market and take trades with low risk.