Calculate the percentage of risk per position before entering the market
Prior to any entry, the trader must know the percentage of risk taken for each trade position in order to control the risk for the trading account capital.
This is very important for risk control in your trading as well as forming a more organized trading system.
Avoid trading too aggressively
The situation for new traders will usually open a lot of positions at one time. This in turn adds more risk to your trading.
If only a series of losses can melt your trading account, that means the risk is too high and needs to be reviewed.
Be more realistic
A trader's mistake is to assume that trading more aggressively will give faster and double returns.
Instead it will put more pressure on you. But it will provide a valuable experience for your future teaching.
Dare to admit mistakes
If the price moves against your entry position it is likely due to sentiment or fundamental factors and so on, you should dare to cover your losses.
Don’t be egoistic if there are clearly factors that indicate your analysis is wrong. Get out of the market early before you incur more losses.
Know where to exit the market
Each trading position needs to be set in advance where it needs to exit either in loss or profit. Set the appropriate stop loss level to cover the loss in position if the price moves against the direction.
Do not intend to take revenge on the market
Usually traders will be emotional when they experience continuous losses and act for revenge in order to regain profits to cover previous losses.
On the other hand, it will make the trader lose control in trading and it is difficult to trade in the right way.
Be prepared for any worst situation
It should be noted that forex trading is risky and every trader needs to be fully prepared in terms of knowledge, emotions and strong psychology to face various unexpected situations throughout the trading journey.
We hope that all traders will succeed in this world of trading and always learn to keep moving forward.
