July 30, 2018 at 11:27 am #421
People open their account in Forex with only a small amount of money. This amount is not more than 100 dollars as they know their investment is at risks. If you look at Forex hedge funds, you will see that they are trading with millions of dollars. They follow some certain tips that help them to manage this huge amount of money. This article will explain these tips to you and also how you can use them in your money management. Now you are a small trader with a small deposit but you will grow old and invest more. At that time, you can use these tips to help you manage your money professionally like hedge funds. If you start practicing managing your money now, you will become skilled when you become a professional trader.
Do you know the majority of the institutional traders in Singaporean are extremely versed at currency trading profession? They never trade this market like the novice trader rather they focus on the key factors of the market. If you belie trading is the right profession for you, start working hard. Unless you know the three major sections of the market analysis, you will never become a profitable trader. Things are really complex when you start dealing with real money. Emotions have no place when it comes to retail trading business.
At first, you need to focus on the educational sections of this industry. Instead of using your real money start trading the market with the demo trading account. It will help you to learn the different trading styles without risking any real money. Just follow the key rules of investment and you will be fine in this profession.
They only risk the money they can afford
One of the secrets in their strategy is they never put the money at stake they cannot afford to lose. If we consider a hedge fund has 100 million dollars, they only would trade with one million dollars. It is the amount they can afford to lose. Though this is a big amount, they have different professionals to reduce their risks. The trade may not go as planned and they still have the risk to lose their money and this is why it is only the amount that is put at risks that be afforded. What novice traders do is they place a trade with all their capital. When the trade goes wrong, they have no investment left in their account.
They manage their balance without emotions
Emotion has no place in hedge fund management. You have to keep in mind that the amount is in millions of dollars and even a small mistake can be very costly. They view their account size as only some digits rather than hard earned money. This sacrificing of emotions it helps them to plan their game plans perfectly. Professional traders also follow the same as they know emotion is contradictory to your success and profit.
They rely on analysis than on prediction
One of the key quality of hedge fund is they do not use predictions. When guessing can play an important in your trading, the planning of hedge fund depends on the analysis of the trends and patterns. They gather all the patterns and try to find the relation between the past and presents.
They take help from the global news industry
Most traders only depend on analysis and the past trends, they do not take the news and information to help plan their strategy in advance. Hedge funds keep an eye on the global market and whenever there is a change, they try to adapt their trades with the change to make their profit bigger. News can change the trend and with the right plan, you can increase your profit. This is how they cope with a million dollar loss in their trades and manage their funds in Forex.
You must be logged in to reply to this topic.