The primary element while initiating a trade is Capital, experienced or a novice is all secondary. Hence the priority concern of a trader should be to understand how to secure the account balance to remain alive in the market. Along with learning the do's and don’ts of trading, it is equally important to realise that whatever skills you acquire is meaningless unless you get the opportunity to apply it in the real world of trading that can yield you profit. Therefore implement your wittiness in probing the real cause expending your account balance.
IMPORTANCE OF MAINTAINING ACCOUNT BALANCE
Concentrating on learning, how to trade is one of the primary aspects a trader must follow and besides that, the importance of maintaining & securing ones account balance is equally essential for a trader to understand. It will enable you to manage your trades when you grow as a trader. As a beginner in the field of trading, you hardly realise the importance of maintaining the account balance. Securing your account balance will provide you with immense opportunity to trade in future which may not be possible if your account balance is not sufficient. So make sure to protect your account balance for the future trades.
Without funds, one cannot trade in a market and hence the safeguarding the account balance is justified. Then how to secure your capital?
VITAL PROCEDURES FOR A CAPITALIZED ACCOUNT
Allocate sufficient time to analyse the price action on the charts that will guide you to view the market as a professional trader. A lot of hard work and homework is required to become a professional trader. "No gain without Pain" is correct in trading as well. A trader who is willing to trade for higher profits should have some goals and plans to achieve in trading. Typically it is not safe for a beginner to use his/her real money without becoming an expert in demo account.
The overall trading statement is what a trader must persevere in trading at any costs, even if it is profit or loss. Losing 5-10 trades will not count because you still have an amount of capital in your account to trade more. A trader must always have a plan to safeguard the funds from the initial stage itself, i.e. from the point when he/she has entered the trade with real money. When you try to preserve your capital by investing your complete efforts on trading by following all norms, you learn and grow as a trader.
Trading and War could be similar that can last for decades, so prepare yourself for a long term war/trade, following your strategies, ethics and knacks you have learnt. Sometimes you might have to think logically because every time you may not get a chance to win. So better be in a safe zone by placing limited size trades with broader stop-loss. There is no definite rule or fact that shows opting broader stop-loss are risky as sometimes tighter stop-loss even has the same amount of risk. The Choice of selecting the type of Stop-loss depends totally on the trader's temperament and market conditions on how he/she can handle the outcome. It is advisable for the beginners to start with smaller positions and gradually increase the amount of capital as and when feels confident or gain experience in the market.
Trading with clarity and Wittiness is more necessary in this field. Consistent practice will empower you to choose the best price action charts and grow as an expert. Avoid being lethargic considering the strength you got to accomplish your plans. Utilise this positivity to become a successful professional trader. Always be mindful about your risks rather than rewards.
Risk-reward is called the Holy grail of trading. In the Forex market, you can make money even if trades are lost rather than winning. Select the trades that will give you the best risk-rewards. Learning the setups in terms of risk-reward will help a trader to make money periodically.
The ideas discussed above when followed by every trader can lead to a successful trading career. Try to opt for long term trade and safeguard your account balance by practising the points discussed above. Gradually grow your account balance by following the trading plans and succeed as a trader.