One of the major differences between the forex and stock markets is the number of trading alternatives available,There are so many advantages to trading Forex than trading stocks,Is trading forex better than trading stocks?
Tuesday, June 9, 2015
3 Things to Remember When Trading Bigger Forex Positions
Let’s face it: We’re all in this for the big bucks. Whether we’re tinkering around with our forex demo accounts or playing with a few dollars in our live accounts, it has never been far from our minds that our accounts are going to make it big in the future.
1. Make sure you’re in the green
Don’t even think about increasing your risk if you’re not even consistently profitable with trading small. If you can’t successfully trade small forex positions, what makes you think you’re gonna have any luck trading bigger ones?
If you think and feel that you’re ready but your account is still in the red, concentrate on pulling it back in the green first. That’s what demo and small accounts are for anyway.
Keep trading small positions until your performance justifies trading bigger. After all, you don’t want to compound your losses with bigger position sizes.
2. Take it slow and steady
Just as you wouldn’t rush to fighting elite world champions after just learning how to box, you shouldn’t rush yourself into increasing your trading size. You don’t want to bite off more than you can chew, do you?
Taking a gradual approach towards increasing your forex position sizes is the key to becoming comfortable with taking a larger risk. If you’re not completely comfortable with the amount of risk you’re taking, chances are, it’ll show on your account balance.
3. Focus on percentages rather than dollar amounts
I’ll let you in on a little trading secret that’ll help you adjust to larger trading sizes: focus on percentages rather than dollar amounts.
Risking 1% on a $10,000 account is the same as risking $100. On the other hand, risking 1% on a $100,000 account is equivalent to risking $1,000. So you see, by risking the same percentage on a larger account, you’re basically trading large
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