Risk management is the lifeline of every retail trader’s journey. You must be healthy if your trading capital is your 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.
Trading is a risky business. No matter how skilled they are, all traders will have losses. This is why you need a protection system in your trading method. Some traders take on a lot to win a lot, while others choose to risk large amounts of money to get a big win. All these strategies will only work if there are too many trades that you place relative to your system.
So, here are some tips to help you curb your overtrading, mostly for day traders.
1) Trade only 3-4 hours per day
Retail trading can be described as a game of chance. However, some traders may need to have a 70 %….