Let's discuss one of the strategies that we use that will never fail you.
The main strategy involves with your psyche. Everything in the market doesn't immediately provide the results that you look for, you have to patiently wait for it.
In this scenario, most of the time, your patience gets tested.
You open a trade with 50x leverage, 10% from your total capital, no analysis, no stop loss and target profits. Upon opening the trade, you immediately see that your trade went the other way, unlike, your usual expected positive percentage trade. After seeing 50% loss from the margin that you've used, you immediately close the trade. Now, you've suffered a 50% loss but in your mind, you still want to trade. So you open again another trade with the same setup and you haven't prepared yourself for another possible loss and there you go again, after executing the trade, you now see 120% negative. This trade was closed again and the same cycle was repeated until the 4th time were you see your capital is now less than 40% than before.
Upon this realization, you continue your day with a really bad mood and you're no longer the same person who was excited to trade as before. You went out for a walk and saw an advertisement where it said, "You're not you when you're hungry." At first, you didn't notice it as it's just sometimes a thing that comes into your peripheral vision but after looking at the delicious treat, you ponder to yourself, "What have I been using my money after my trades? Why is it all just about my trades? I think I have been thinking about it in reverse the whole time. It was supposed to be trading for me to earn money, to relax and to have something for my future plans. Why is it so different now?" Right after these series of questions, you came into conclusion that you've deposited more funds instead of withdrawing more funds.
As you've become more aware of what you've been doing your entire trading journey. You have now set yourself to committing into gaining more withdrawals and less deposits. Now, you've these set of plans that will further assist you in getting your goals.
Here's the checklist that you have for your trades:
- Withdraw more, deposit less.
- Use only 0.25%-1% margin from your total capital for your trades.
- Using of 1x-8x leverage to mitigate the risk.
- Using of 9x-125x+ leverage, however, divide the 0.25%-1% margin into smaller margin sizes in order to mitigate the risk.
- Setting stop loss at invalidation areas with minimum of 3% and maximum of 7% possible loss.
- Highlight take profit areas to ensure cash will not turn into stone.
- Study what went wrong and what are the good points in recent trades.
- Being open to analysis mistakes and improvising them.
- Not rushing the process, trades doesn't immediately go to the desired profit areas, it will take time.
- Ensure survivability of the capital deposited instead of thinking, "Nah, I can just keep on adding more capital."
- Build connection with traders whom you can trust and not listening to traders who are just there for the hype.
- And other checklists that you can add to ensure you will be reminded of your trading strategies for trading success.
"Why do you always make these kinds of content? What will you gain from this?"
I've been there, the times when no one else taught me how to manage my trades, times when I kept on thinking that the people posting in social media about trading hype are reliable and so on. As a fellow trader who have navigated the market ever since by just self studying, creating and implementing his own tactics. I also want to share what could save your trading capital and be the trading guide that I once needed.
Stay wise, trade cautiously.
