Risk management is the lifeline of every retail trader’s journey. To preserve your trading capital, you must live a healthy life. Therefore, the first objective as a retail trader in the forex market shouldn’t be making a profit; it should be staying in the game long enough to experience consistent profitability.
No matter what level of trading skill, traders will experience losing streaks and losses. A protection mechanism should be built into your trading strategy to deal with this reality. Some traders take on a lot to win a lot, while others choose to risk large amounts of money to get a big win. These strategies won’t work if you trade too often relative to your system.
So, here are some tips to help you curb your overtrading, especially for day traders.
1) Only trade for 3-4 hours each day.
Retail trading can be described as a game of chance. However, some traders may need to have a 70 %….