Saturday, September 29, 2018

The Golden 5% Trading Strategy


The 5% golden trading strategy is not an indicator technical strategy and the like but this is a good strategy for using Money Management.

What is money management?

Money management is how we use our balance when trading.

Do each of your transactions use more than 10% of the balance? If it means you will not last long in this trading business.

The main example is suppose I deposit 100 dollars in IQ Option if every time my transaction uses funds above 10 dollars then I am greedy characteristics and have no money management. That's why here we learn to use the golden 5% Strategy

How do you use the Golden 5% strategy?

The rules are simple, every time we trade, we can only risk a maximum of 5% of our balance. (the greater the amount of our balance, the smaller the risk can be). If your balance is above 500 dollars then you can only risk a maximum of 4%. And if the balance above 1000 dollars the maximum that can be risked is 3%.

This rule you must instill in yourself and absolutely must be followed in order to become a successful trader.

How do you use this strategy? For example, if you deposit 50 dollars in IQ Option, each transaction you can only buy options is a maximum of 2 dollars

By using good financial management, our chances of success at trading will be even greater. Besides this strategy is also useful to minimize losses every time trading.

Try to think if you have a balance of 50 dollars and every transaction you use 20 dollars means that you only have 2 times the opportunity to trade, what if from two occasions it turns out your prediction is wrong, and you lose so you have no more capital? Think carefully before opening a position.

If you are a professional and have a great strategy, it doesn't matter to ignore the rules above, but for beginners, the above strategies must be followed and practiced.

Combining the above financial management strategies with the trading indicators that you use, you can certainly make consistent profits. If you can make a consistent profit, don't worry anymore in this life. Buy anything you can, anywhere you can.


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