If you are not worried about your trading business, it will not last long because your mind will mostly focus on the profit potentials of the trades. At the same time, you will also have high expectations from the trades. Therefore, you have a high-risk factor aiming at big profit margins. Unfortunately, many rookie traders in Singapore do not have any solid idea about the secured trading business. Therefore, they focus mainly on the profits potentials but not on the trading plans. This way they ruin their trading quality with poor strategies and inefficient trading plans. You cannot survive with this kind of trading business. You should have the ability to secure your trading business with little to very low potential losses. This, you can easily gain a decent profit margin from the trades. Most importantly, you can also manage a solid trading performance with the best possible control.
So, be concerned about your trading business and try to save it from big potential losses. Do not waste too much money on the trades. Instead of making big profits from big lot sizes, try to improve your plan for a profitable trading business. It is possible to gain a decent profit potential from a small-sized trade. You just need to understand how to find a suitable trade setup for it.
You should not aim at big profits
When you are aiming at big profits, it will decrease your trading performance. This is the first mistakes of many rookie traders. For your business, you need to reduce interest in the big profit potential. Using a decent trading method, you must aim for 2R of profit potential from the trades. As many rookie traders scalp or day trade in Forex, this small profit target is suitable for the traders. This strategy helps traders to maintain low-risk factor in CFD trading because no one thinks of big lot sizes just to make a 2R of profit margin.
On the other hand, small lots also increase your confidence in the trading edge. Therefore, a trader has the most control over the emotions and excitement related to Forex trading. Thus, a solid performance can be delivered for the execution of the trades.
Execute trades with very small lots
When you have a low-profit target, the lot sizes will be small automatically. But there is some more factor behind the increase in the lot sizes. Aside from the profit target, a trader also thinks of long term trades. It may not be common among the rookie traders but many do like to relax and operate the trading business with less stress. Therefore, many choose to follow swing trading or position trading system for their business. In the case of those trading methods, many traders decrease the safety of the trading money with lot sizes that are too big.
As the profit potential of long trades is higher than in short trades, many traders automatically think of increasing the lot sizes. To gain a respectful profit, many traders make this mistake and increase the risk factor of the trades. For your business, you need to stay relaxed with a decent risk per trade and leverage. Even with a small investment, a trade can provide decent profit potential. On the plus side, you will have an edge over the potential loss and trading tensions.
Improve efficiency in market research
To ensure a decent profit margin from the trades, any execution must be done with a solid plan. Otherwise, you cannot secure your trades or trading money. There will be frequent losses, and all of the will be responsible for making you lose a significant amount of capital. So, you need to secure the trades with the least amount of potential loss. If you want to survive in the marketplace, improve your market analysis strategies. Then maintain a decent trading performance with proper control. Thus, you can secure your investment with very low potential losses. Most importantly, your trading mind will not become confused.