Why you should focus on securing pips in Forex
If a trader cares mainly about the profit margin, his or her trading quality will not be good. Too much interest in the profits will only make you focus on the gains but not the safety of the investment. So, many important aspects of the trading process will be neglected by you. This is a bad trading strategy and you will lose money from the account balance with it. You need to care more about the safety of the trading capital. And from a decent money management plan to the positions of the trades, everything must be used efficiently. Thus you will be stable and can survive in the hard world of Forex. It will also provide you the chance of making decent profits. Because of the relaxation in the trading mind, it is possible. So, concentrate on the trading performance and care more about gaining pips from the trades.
When you will aim at pips, it will force you to work efficiently with effective trading processes. But it is not easy for a rookie trader to join the currency trading business and start executing quality trades immediately after it. You must practice the processes to improve consistency. Then you will have the potential to gain a decent amount of pips from the trades.
photo/ Gerd Altmann
Do not try to execute big trades
Every rookie trader needs to secure the trading business with an efficient mindset. And for it, you cannot think about big profit margins. Because this desire will always make you execute big sized trades. On the other hand, your novice mindset will fail to find any suitable market conditions for the trades. Therefore, you will have a high potential of losing money. Along with it, big lots will increase the potential losses higher. Therefore, you will ruin the chance of survival in the Forex trading industry. To ensure the safety, you can use the Forex demo account offered by Rakuten and develop your skills.
So, you need to secure your trading ideology from any big gains. It will not provide any suitable conditions in the trading business. Even your trading mind will plan inefficiently for the trades. So, you must secure the trading business with more interest in the safety of the investment.
Reduce the risk exposures
The safety of the investment is good for a decent performance. But you will need an effective trading plan for it. The risk exposure should be simple for every execution. It is important to keep you consistent in the business. But the main concept of decent risk exposure is to reduce the risk factors of the trades. Moreover, it can also increase the potential of your market analysis and positioning system. Therefore, decent risk exposure is necessary for your trades. You need to secure the investment with a 2% investment from the account balance. Thus, the plan can be consistently followed for every trades.
So, reduce the risk exposure to improve your trading quality. And develop a trading journal to follow strict plans for every procedure of placing a trade. Thus, you will be efficient and secure in the highest volatile marketplace in the world.
Market analysis is important
To secure the trades from any potential loss, you also need to find suitable market conditions. To be more specific, you need to find valid spots for opening and closing a trade. Therefore, an effective market analysis is important for this job. From a secured investment you can concentrate on other necessary aspects of the trading process like market analysis and scaling of the trades. But without appropriate knowledge, you can never find suitable positions for placing a trade. Therefore, you must dedicate some time to learning about fundamental and technical analysis.
Both of them will provide you the opportunity to predict the price patterns. Moreover, you can time the trades precisely for the highest possible pip gain. But in the real implementation of the market analysis strategy, you must spend some time. Otherwise, you cannot deliver quality effort for the trades and can ruin the positions.
Author: Sheikh Huzaifa
