Ten Silver Money Management Strategies Methods
The process below describes the process of formulating silver trading money management and practical advices on formulating your own silver trading money management system in Silver Trading - silver trading account management.
1. Keep the Necessary reserve (over and above the broker margin requirement)
This reserve is needed for unusual situations & it should be not less than 50% of invested equity. It is the first rule of silver trading account management in margin definition for opening silver orders. However, many experts and analysts advice more reserve of about 70 % - 90 % of invested silver trading account capital for safe operation in xagusd trading.
2. Do not to invest more than 2%-6%
This is one of the principle that helps to avoid bankruptcy: never invest more that 2% on one market and do not to invest more than 6% in the total open xagusd trades.
XAGUSD Trading Account Management Rules
This is not the same as above, the above is never invest more than 5% , this is never to lose more than 2% on a single trade. In this case a trader risks only lose small part of his trading equity with an unprofitable order.
4. Diversify
Use optimal investment of your trading funds is that you should diversify to some degree. Just In case one trade losses, the order can be covered by profits of another trade.
Silver Trading Account Management Rules
On a piece of paper or better still in your trading plan. If you open orders then this orders should be within your silver trading money management guidelines.
6. Define your stop loss and take profit levels
When you are trading put your stop silver orders in order to avoid any huge losses or even bankruptcy. Profit taking levels will ensure you get additional profit by taking money out of the xagusd trading market. Analyze the situation and predict the future movement of xagusd price action and place orders accordingly. You can even use indicators and volatility of the xagusd price to know where to place these orders.
XAGUSD Trading Account Management Rules
Consider only opening xagusd trades when you have the chance to get profit against loss ratio of 3:1. If you cannot do it then don't open the order.
Silver trading money management should seek to bring maximum profit to the traders account, keeping profitable orders as long as possible is a good trading strategy. Therefore, if you make some profitable orders you can have goods results.
8. Try to follow the rules of opening & closing the xagusd trading orders specified in your plan.
That way you'll get consistent trading results required for making profits in xagusd trading market.
9. Do not revenge against the xagusd trading market
In this case, you'll not be analyzing the situation but you will just be trading based on emotions and you'll lose more money.
10. Timely rest
Don't trade when you are exhausted, no matter how tempting the situation may seem, you might not get the profits that you can if you were to trade based on your silver trading schedule.
Considering these - Silver Trading Account Management Rules and Guidelines can make you trade profitably. Try to create your own silver trading money management strategy that gives you good profits.
