*Important Key Points for Leverage Trading*
1. *Risk Management*:
- Understand your risk tolerance
- Set limits and determine your risk level before entering a trade
- Best Risk Rewards Ratio: 1:3 (e.g., risk $100, reward $300)
2. *Emotional Decision*:
- Avoid trading based on emotions (fear, greed)
- Stay calm and stick to your trading plan
- Use stoploss to prevent impulsive decisions
3. *Taking Profit*:
- Set clear profit targets
- Stick to your targets, don't get greedy
- Use stoploss or trailing stoploss to secure profits
4. *Stoploss*:
- Pre-determine a price to exit a losing trade
- Set a logical stoploss level (not too tight or too loose)
- Aim for a -30% stoploss per trade
*Conclusion*:
Only a small percentage of people will take the time to learn and follow these key points, but it's essential for successful leverage trading. By understanding risk management, emotional decision-making, taking profit, and stoploss, you can protect your investments and avoid common mistakes.