As some of you already knew, you can actually do risk free trading.
At the onset of putting in a trade, you will definitely put a stop loss and risk certain percentage of your account on that trade. With a good entry and price quickly moves in your favor, you can adjust your stop loss to breakeven and trade using money given by Mr Market. As for when to adjust your stop loss to breakeven, i will usually do so when i have gained 1 unit of risk, which is 1% for my case. Alternatively, when price has moved in your favor, crossed and closed beyond a significant support or resistance, you can also consider moving stop loss to breakeven. Even if it hits your stop loss subsequently, it does not really bother you since you risk nothing.
Start managing your trade well and trade risk free from now on.
This is one of the toughest questions which you may encounter in you trading career.
If there are just 3 things you must do, please do the following:
Many people want to be in a business but many businesses actually fail. The cost of failing a business is huge since the startup cost is usually significant. In forex trading, you have a taste of running your own business with low startup cost and minimal risk involved. In fact, forex trading is akin to a real business.
In the long run, there is no way you can win 100% of the time in forex trading. Yes, you could probably win 5 out of 5 total trades. But if you trade a total of more than 1000 trades so far, it is impossible to achieve 100% success rate.
If you are overtrading, we advise you that you should cut back your positions or you will not see your account equity for long. Sometimes, you are doing everything right but you are still losing money. That is because of overtrading. When you overtrade by trading 10 positions at any time and you risk 2% per trade, you are effectively risking 20% of your equity. With this method of trading, you will see that your account equity fluctuates drastically. At times, you will see huge returns but you must also withstand sharp draw down.
You have been trading well, getting overly excited that you are starting to master forex trading, you start to trade more. Few days later, you start to give back all of your forex profits. Does that sound familiar?
This phenomenon seems to affect everyone from time to time. You never seem to be trading better but your equity just hovers around the same level, winning some and losing some. It can get very frustrating to the point of giving up forex trading. We understand that since we went through that as well.