Let’s face it; some days are just hard days to trade. But when the markets throw me curve balls, there are a couple rules of thumb I always go by to balance out the uncertainty and keep large risks at bay:
- Most importantly, recognize the unpredictable market conditions. If you don’t take a second to realize that the market is throwing you curve balls, it might be too late for you to make the adjustments necessary.
- Use a money management tool like Trade Manager to lower your maximum risk from 5% down to 1% of your entire account. When the markets are unstable, it is easy to over trade. By reducing your risk you can take more trades in a day and withstand the small losses long enough to get the important wins.
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