Achieving Great Profit at Small Risk (1)
Investing, usually the profit potential will be directly proportional to the level of risk. So if we want to get a big profit then it should be noted also our trading risk level will also increase. Then how to achieve a large profit a small risk? An ideal ideals is not it?
The real solution lies in our shrewdness in managing funds. It all started from the important pillar of trading, which is 3M: Mind, Method, Money. This important pillar if expanded will discuss about money management (risk management), risk management (risk management), trading plan and trading psychology.
Based on the experience in the world of trading, there are some tricks that we can do to achieve a large profit small risk.
The Concept of Capital Strength
Determine at the beginning how much your capital strength, then map by preparing a trading plan or trading plan. Target profit should be realistic. For example, the average trader typically earns a 10-20% profit per month from the initial fund.
In the world of forex trading is possible to earn profits up to 100% of funds per month, but such incidents can be said rare or not sustainable. Measure our ability to set profit targets.
Well, if we want a profit of $ 1,000 or $ 2,000 per month, then reasonable if we prepare capital of $ 10,000. But it becomes unrealistic if we only provide $ 500 capital for the target $ 1,000.
Most traders are only fixated on one trading instrument only. If he is trading forex, usually only fixated on one currency pair only. If he is a stock index trader, may only see the Nikkei only. Or there is also just gold trading.
It is not wrong if we do things like that, but that means we simply ignore opportunities in other currencies, or other stock indexes. In fact, there are so many trade subjects that we can transaksikan. 17 (seventeen) currency pairs, 3 (three) commodities, 8 (eight) stock indices and 183 (one hundred and eighty three) preferred shares that can be transacted on a CFD basis.
It does not have to monitor all the products mentioned above, but at least try to expand your view as profit opportunities can appear in other products.