Portfolio management
It is a way to choose and keep track of investments that match long-term financial goals while maximizing profits and minimizing risks. To go this way, you need to have a good understanding of the market and different investment options and be able to make smart decisions based on analyzing financial data. |
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📌 You can achieve good portfolio management by understanding three main aspects:
Money Management
Risk Management
Self Management
Money Management
When the supply and demand in the stock market are equal, it can be challenging to make the right price trend decisions due to the indecisive atmosphere.
It's normal to make some losing trades, as it's impossible to profit from every single trade.
Therefore, the main objective in trading is to minimize losses. To achieve this goal, traders can use several simple and trustworthy risk management rules.
The Martingale System
If a trade is unsuccessful, you can increase the amount of the next trade to cover your losses. After a successful trade, you should go back to the original trade amount and start over. Normally, the Martingale method involves four to seven steps. If you reach the seventh step and it turns out to be a losing trade, it is recommended that you stop trading for the day.
The Parlay System
If you have a profitable trade, increase the amount of your next trade. But if you experience a loss, go back to your original trade amount and start again. When using the Parlay system, it is important to set a limit for yourself and determine the maximum number of times you can double your trade amount. This limit should depend on your trading strategy.
The Fixed Sum Method
When trading, it's important to manage your risk by determining what percentage of your deposit you're willing to use for each trade. Typically, this amount is between 0.5% and 6%. It's recommended that you don't exceed 5-6% for any of your open positions.
Risk Management
The risk management system is an automated system on the platform that works without any manual intervention. It works on detecting trades that incur high risks or low liquidity assets and sets restrictions to secure the trader's capital.
📐 Trading Limits
A trading limit is a restriction on trading that can be daily, weekly, or hourly for trades to secure the traders' capital if the system identifies high-risk trades on your account.
📝 The daily limits are updated at 21:00 UTC.
Market conditions
When markets are volatile, it may be challenging for our liquidity providers to maintain the situation. Thus, the system helps us limit the amount of investment that traders can use to open a position.
Risky Trading Styles
More than 10% of the total funds are in your account. Like trading with more than $10 if your total balance is $100.
Set a trade duration for less than 10 minutes.
Types of limits
Volume: limits to restrict the total amount you can invest in a particular asset or group of assets.
Number of open trades: Limits on the number of open trades you can have at the same time.
Open position limit: It is a limit that changes according to the volume of your currently open trades and doesn't expire.
Dealing with limits
Our risk management system automatically adjusts the limits based on your trading style.
However, when you have limits and wish to remove or decrease them sooner, we suggest opening trades for no more than 10% of your total balance per trade and trading for at least 10 minutes to reduce risk.
🔧 Trading Tools
🎯 Stop Loss/Take Profit
Using our automated "take profit" and "stop-loss" features gives you the power to gain greater control over your Forex trades.
These features protect your invested money and ensure that you secure your trading plans.
⛔ Stop out
It is a feature to automatically close a losing trade, thus your balance from negative value.
The Stop Out level shows the amount of investment that should not be within the loss from the trade to remain active and not be automatically closed.
🛡 Flat Market Protection
With our 'Flat Market Protection' feature, you can receive a refund of your invested amount if the opening and closing quotes of an FTT or Flex deal differ only by one tick. Because simply, the trade result gets canceled if the difference is one tick.
Self Management & Trading Psychology
| Traders' mindsets are reflected in their behavior. Success depends on emotions toward the market. Anxiety, fear, and greed are emotions experienced by traders. Some are helpful, and others need control.
Good trading psychology means less influenced by emotions. A positive attitude increases success. Greed makes traders stay in a trade too long. Fear makes them cut losses or avoid risky positions. |
Tips for better trading psychology
Mastering trading psychology can be achieved by following these tips:
Practice identifying market trends regularly.
Create a trading plan with clear entry and exit points, profit targets, and trading timings.
Minimize risk by using a Take Profit and Stop Loss.
Be patient to results and avoid trading with borrowed or non-disposable income.