How Risking No More Than 1% Is Helping Forex Traders Profit

Forex trading is a domain where risks are ever-present, and you have to maneuver around them. Trading and risks go hand-in-hand; starting off, you'll find several traders trying to dodge risks by playing it too safe or find ways to trick the market - neither approach works out. The only way to make big profits in Forex trading is by taking big risks, and the only way to not lose money doing so is by following disciplined risk management strategies.
 

A risk management strategy isn't like the typical Forex trading strategies. The former is more intricate and takes into account various factors of your trade. Every now and then, chances have to be taken in order to climb up the ladder. As a Forex trader, you can either take the safe route and find contentment in small profits and breakevens or risk a good few times and walk home with hefty profits. This risk varies from trader to trader. 

If you're a novice with minimal capital, you should stick to making affordable risks. Traders with a lot of capital and experience are often seen making bold moves since they can afford big losses.
 

The 1% Risk Rule:
 

Know How Forex Trading Risk Management Helps in Making Profits

Risk management is as psychological as it is physical. Trading has a lot to do with the mind, and if you can instill some strict habits in your mind, you'll be able to see consistent profits. This is what the 1% rule aims to do; it keeps you from risking any more than necessary and sees to it that you lose no more than 1%. If you have $10,000 in your trading account, losing 1% of its - $100, would not be too huge a loss. What this rule aims to do, is change your mindset of trading into a more cautious one. 

With only 1% risked or lost, you will not lose your trading vigor and won't be affected too heavily by the lost money! And at the same time, your 1% risk still carries significant value in trades, has ample chances of bringing in profits and keeps your movements viable.
 

For long-term Forex trading in India, the percentage risk rule will work great. You will come across various sources stating 3% to be the ideal limit, this ultimately boils down to your risk threshold. Should you be able to afford a 3% risk and loss, you should go for it!
 

Planning on Forex trading in India? You've come to the right place! WesternFX will be your risk partner through thick and thin! Our seasoned experts have years of experience trading currencies and will provide you with the necessary risk management guidance. Call us today and get started on our stellar trading account! 

Things to Ask Yourself Before Starting Social Forex Trading in India

Social trading has become quite popular over the last few years. With many traders entering the Forex trading markets looking to make a quick buck, only a handful of the crowd has the time to devise their own approach. This is why several traders have started employing the social trading approach. This method lets traders follow trading moves professionals devise. And by employing a copy trading platform, they're able to mimic the trade an expert makes! 

For traders who don't have enough time, or for the ones who wish to deeply understand how professionals trade, social trading is an amazing technique.
 

Here are 4 important things to know before you begin social trading:
 

Things to Ask Before Going Social Trading

1) Copy Trading Won't Let You Be Original: Forex traders enter the domain of trading in order to be free. Free from their bosses, free from the corporate struggle from 9-5 and free to employ their means of choice to trade. But if you employ social trading, you'll be relying too much on other traders and their strategies. Ultimately losing your authentic touch to each trade. Make sure you're aware of this fact before you begin trading socially.
 

2) Social Trading Isn't Free: Copy Forex trading isn't free. Following professional traders will cost you a good sum. Of course, you have a better chance at profiting and the expense might be worth it, but many traders seem to have this misconception that social trading is cheaper.
 

3) Patience Is A Must-Have Trait: As a copy trader, you will be working with the strategies professionals follow. This means that patience will be of utmost importance. Some Forex exchange strategies will see results quickly, but most won't. To make the most out of your social trading career, you will have to stay patient and wait for the results to show. Many traders fail early because of their hastiness and want quick results. Get a Forex demo trading platform and try it out first!
 

4) What Works For One Trader Might Not For You: By copying the tactics of another trader, you can't establish that you will see the same results. Several underlying factors will come into play here. The currencies used, the Forex trading strategy employed and the timeframe picked, for starters. Depending on these factors, the strategy used by an expert might work for him/her, and the same, when employed by you, might not bring in the results you expect.
 

Forex exchange can get incredibly exciting, but staying in the domain just for profits isn't as fun. If you do lack the time to trade, copy trading is a good start. And down the line when you trade full-time, you will need the assistance of a stellar broker! Call WesternFX and avail our world-class Forex trading solutions.

Should You Avail a Demo Account in Forex Trading Or Go Live Trade?

Demo trading has always been under the scanner of many traders, and there is a tug-of-war between those who believe it is useful and those who think it is counter-productive. This factor can be broken down into simpler terms. Look at it this way - you need to practice in order to become adept at Forex trading, and demo trading accounts offer you with the grounds for learning currency exchange. That's how simple the deal really is!
 

Forex Demo Trading - Is It Good Or Bad For You?

However, certain underlying factors are found to be disadvantageous by many traders, leading them to avoid demos and go live trading directly. When you take a deeper look at demo trading, you will find that liking or disliking it is just a matter of perspective! For example, consider the virtual money factor. On a demo trading account, you are provided with as much virtual capital as you want to practice. 

Now the advantage of this is that you are not limited by any means, which is very good for beginners who want to measure the extents of things in Forex trading markets.
 

You can place million dollar trades and see how things play out - quite a benefit, from one perspective. The disadvantage here is that trading and playing around with such big numbers leaves you imbalanced for trading real-time. Even on live trades, you might end up having the same lenient mentality demoing gave you, and this lack of seriousness can lead to scary losses!
 

Another factor divided by perspective is emotion. Emotions are a very fragile element of life, and they are just as frail in trades. If you get too worked up, you might lose control of a trade that you would have otherwise won! While demo trading in India, the environment itself is such that there is nothing to create any mental pressure! You can practice relaxed, and learn the necessary skills with no tension.
 

However, mental pressure and tension are things you will need (in minimal amounts) when Forex trading in India! They give you the necessary fear to keep you from overtrading and draw the line between good trades and bad one. So when you move from months of demo trading, the mindset you have will be a stress-free one. This might work against you and leave you mentally unequipped to trade real-time.
 

Many traders feel divided between these perspectives while Forex trading in India. It all comes down to how you see things and how your approach is. Sign up with WesternFX today, and get yourself a stellar demo trading account to work on!

How Worth is Investing in Forex Trading in India 2019?

Big jumps always have a possibility of big falls, but these leaps can also take you higher than ever! Foreign exchange is known to be a roller-coaster ride with a huge number of ups and downs. Risks are always a gamble here, which can either reward you tremendously or birth massive losses. With all things said and done, no trader wants to go back home day in and day out with losses in his wake. A market as lucrative as Forex exchange is bound to induce the thought of profiting in the minds of everyone who passes by!
 

Now that 2019 is here, many are looking to take up Forex trading full-time. With the comforts of online trading present for everyone to avail, financial markets are set to see a massive crowd! At the end of the day, are the several risks taken worth it? 

These 5 factors when satisfied can make a venture and its risks worth taking: 

Know the Real Worth of Investing in Forex Trading India

 

1) Steady and Incremental Returns: The first thing you should consider before making that big jump is whether the risks will pay off, literally. Investing is always a tricky play because there is no surety about the returns you will get. Forex trading is known for being profitable, but there is no guarantee of it. Investments have to find their way back and preferably is multiplied. To thrive as a Forex trader, you will have to earn more than you invest! 

This point applies not just for foreign exchange, but for any new venture, you wish to work towards. Don't expect immediate returns, but make sure you earn enough to trade another day.
 

2) Work-comfort: Unlike how things were a few decades ago, personal comfort has become an important aspect today in all industries. A job no matter how time-consuming has to be comfortable! Money is the primary factor, but health and comfort are just as important. Forex trading in India leads several traders to get stressed, worried and in turn sacrifices their personal happiness and welfare. Forex exchange needs to be approached strategically. 

You will have to weigh out your responsibilities and balance the work with rest and day-to-day activities that need tending to.
 

3) Manageable Stress Levels: Mental health has long since been ignored by people. Today companies far and wide and emphasizing on being mentally healthy just as much as on physical levels. Forex trading has the potential to leave you mentally worn after just a few trades. Any job you wish to spend a long time doing, should not invoke stress that leaves you burnt out. Foreign exchange, however, is a field best known for its taxing trades and stressful outcomes. It boils down to your approach; successful traders don't spend time with their head splitting in two, they relax, trade, earn and repeat! To sum it up, Forex exchange is indeed stressful, but only when ill-prepared. 

With a sharp approach and ample demo trading practice, you can have a profitable and enjoyable experience trading currencies.
 

4) The Learning Process is Efficient: The concept of a learning curve exists in all fields. A domain like Forex trading in India can't be mastered overnight! A number of categories and sub-categories exist here, and these can only be learnt with time. When you start something new, learning should come easy. Typically, trading isn't something that can be termed as "simple", but with some research and demo trading practice, you can learn the basics and pick up the essentials on the go! 

When you are able to stay abreast of the latest developments and implement new-found knowledge, the field you are in can sustain you.
 

5) Starting Off is Affordable: The last requirement to satisfy before affirming if a field is worth risking is the initial costs you have to bear. As far as Forex trading in India goes, you can get started with a few hundred dollars! This starting sum added with a little leverage can power you up enough to hold lucrative positions and make a good winning.  

Additionally, all you need is a laptop and a good trading platform - these minimal requirements are enough for you to get started as a Forex trader today.
 

There will be many days when you feel the need to ask yourself the same question - "Is it worth doing?” On these occasions too check if the above-mentioned aspects are satisfied. Forex trading in India won't be an easy plane to walk on; you will have to endure many a challenge to see success! Worry not, for the experts at WesternFX are here to ensure you enjoy Forex and have a worthwhile trading experience! Assisted by our professionals, you will see raining profits! Try a demo today, call us now and book one.