How to reduce risks when using the Martingale strategy? Tips for beginners

Have you decided to use the Martingale strategy? Then adhere to the following tips - they will help you to reduce the potential risks:

1. Do not use the Martingale during a flat. It makes sense to build up a position when you caught the beginning of a trend. Or, you entered the market too late in the trend, lost money because of its reversal, and now are 100% sure of a change in its direction. In this case, it is possible to double your bet.

2. Use Martingale as an additional tool. The trading system should be built on logic, supported by technical and fundamental analysis, levels, and patterns. And only as a tool to increase profits - Martingale.

3. Start trading with a minimum lot. With the gradual increase of the position, you will have more possible series.

4. Strictly adhere to risk management. This refers to the risk per trade and the total number of trades. Remember: as you increase the volume of trades in lots, you increase the point value, which can cause a stop-out. Trading without a stop-loss order is categorically forbidden. Take Profit is desirable, but the manual transfer is allowed.

5. Exclude short timeframes. The price movement on intervals M1-M5 is practically unpredictable. That is why it is not worth taking the risk of increasing the trading volumes.

6. Control emotions. In gaming practice, there is a notion of gambling - the desire to win back at any cost. The person is not psychologically ready to accept the loss, so he replenishes the deposit and tries to win back, doubling the bet. This is the way to direct the loss of the deposit.

Before launching a Martingale strategy on a real account, run it through a tester. You should know the average and maximum series of losing trades.

Also, if you want to use all available trading tools to increase your capital 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.