How to Trade in Peace

How to trade in peace? Usually when you are in the market, there is always a risk. You take that risk in exchange for a reward. Most of the time we lose, cause sometimes the market is just erratic, or we made a wrong judgement call, or what ever upsetting events that can happen. Sometimes we lose consecutively. When we lose money, we get upset isn't it? I do get upset if I start to lose more than what I earn from the market. So there is one lesson that everyone should use is not to risk too much. Probably you have read about "Risking only 2% of your account". That's like a standard word to just tell everybody not to risk EVERYTHING on your account. Sometimes we lose consecutively, so this 2% can also easily accumulate to a big loss. I think we all have different perception of risk taking, some can take bigger risk, some take smaller risk. It's up to the individual. The most important thing is to be comfortable in the amount of money that you can lose. You do want to sleep comfortably in the night right? Even if you lose that trade, it won't make a big dent in your account and you can tell yourself: "Hey! I'm wrong! let's move on and wait for the next opportunity.". It builds the confidence if you win and also force you to be consistant. When your account grows by your wins, then you can increase your risk according to your account.

How to do that? Reduce your lots, make it smaller. Don't have big lots and make your stoploss too small. You'll lose definitely. You need to have space for your trades to run it's ups and downs. By having smaller lots, you can have bigger space for stoplosses, hence you will not be risking alot. So this is one adjustment you can set for yourself. Yes, the profits may be small, but if your reward is more than your risk, you still win. If you lose, the loss is just small. Good placement of stops is usually at slightly away at the end of the tail of the candle/ support/ resistance.

Oh, one more thing. It's good to lock in/ take your profits when you see you have earned a good amount of money. Never hurts to lock in profits.