Professional traders have extensive trade management skills. They never get biased with their running trades as they know the emotional approach leads to big losses. If you want to keep your funds safe in the trading profession, we strongly recommend that you learn to manage your trades in a standard way. Never become extremely excited with the big profitable trades as it can be the prime cause for blowing up your trading account.
To be on the safe side of trading, you may follow some classic rules to manage your trades more effectively. Make sure you go through this article very carefully as we are going to give you some amazing tips which will help you to manage your trades in a much better way.
2 % rule of money management
You should not be trading the market with more than 2% risk in each trade. If you take trades with more than 2% risk, chances are high that you will be losing money from most of your trades. Being a smart trader, try to think about the conservative trading method. Once you learn to take the trades with 2% risk exposure, you will become much more relaxed. Moreover, managing your running trades will become easier as you can embrace the losing trades. If you become extremely skilled with your trade execution process, you may alter the basic rules of 2% risk management. Based on your personal risk threshold levels, you should be determining the risk factors for each trade.
Maximum number of trades
Professional traders never open too many trades at the same time. You need to set rules of the maximum number of trades that you may keep open in your trading account. View website of Saxo and learn more about the leverage trading account and the margin requirement to keep the trades open. Based on that, you should determine the number of trades that you may have running at a certain trade. To be on the safe side of trading, you should not have more than 3 trades running. Make sure the cumulative risk factors for that 3 trades is not exceeding 2% of your account balance.
News hours
The rookie traders often execute their trades during the news. They forget the simple fact, the market is extremely volatile right after the release of high-impact news. To keep your capital safe, you should not be trading the market in such market conditions. Try to find stable hours by knowing more about the different trading sessions. Keep yourself tuned with the latest economic calendar so that you can scale your trade prior to the high-impact news release. Once you make this part of your trade execution process, you will no longer trade the market with great confusion.
Using a premium trading strategy
Managing the running trades becomes really hard when you rely on an indicator-based trading system. To keep the overall trading process easier, we strongly recommend that you learn to trade the market with the price action confirmation signals. As you become good at analyzing the candlestick pattern, you should gain confidence to take your trades at the major support and resistance level. Never become biased with your actions while using the complex trading method. Try to take your trades based on the price action confirmation signals and you will definitely feel relaxed with your actions.
Trade with long term goals
Professional traders find the overall trade management process extremely easier, as they trade with long-term goals. They never rely on a short-term trading approach as they know it never helps. Follow the professional traders and learn to take your trades in a higher time frame. Once you become good at analyzing the higher time frame data, you will definitely become more confident with your actions and thus you can take more trades in a very professional way.