Top 5 rules of capital preservation in trading

There is not a single trader who has never lost money!

It's quite possible that at the first time of trading you may fall below your initial deposit. But that doesn't mean you have to keep losing money on a systematic basis :) In this article, we will just give you 5 basic recommendations that will help you not to make popular mistakes and get into the "plus" zone. This material is not a recommendation to trade, it was created for reference and information purposes. The information collected in this article has been tested and applied by the traders-teachers of our company for more than 10 years:

1. If you trade intensely every day, and you have three sessions in a row of negative, then on the fourth day it is better to refrain from trading.
2. If you are new to trading, then in the first half hour of the trading session it is advisable to make no more than two negative trades. You must calculate so as not to lose a third of your daily risk. That is to say, if you set a limit for the day, let's say sixty dollars, then after losing twenty dollars you should stop trading.
3. If after 10:15-10:30 NY you lose another third of your daily limit, then at least half an hour more do not enter the trade. Everyone is different, and everyone reacts differently to losses, too. There is a good chance that you will have a desire to win back, and you will only make things worse. Therefore it is better to stop, pause and think about how it will be better for you to act further. In this free time, you either watch the market or make a new selection and form a new list of potential stocks.
4. If you are in the market during the entire trading session, leave yourself the opportunity to make one or two trades between 2:00 p.m. and 4:00 p.m. NY. It is no secret that the most active movements come at the opening and closing of the session. During this period, there are often opportunities in the evening to take a trade and earn an amount that can take you into positive territory.
5. If you have a good plus, you don't have the right to put in three times the risk you put in. You can develop large positions, but the risk still cannot exceed one-third of the daily loss limit. That is, if the daily limit is sixty dollars, the risk per trade is still twenty. This applies to beginners. Over time you will have moments when you will risk some serious amount, but only when you have a certain feeling and understanding of the situation. But at the initial stage even if you have managed to earn forty dollars, then there is no need to raise such a volume where you can lose sixty. In the final, if you lose them, it will be minus twenty, and it may seem that this is not critical. But in fact, after such a good plus to immediately get such an unpleasant minus is a very serious blow to your psychology of a "winner.

We hope that these rules will help you to improve your results and to avoid big losses in your trading way.

Also, if you want to use all available trading tools to increase your profits as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.

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