The online trading world is one of the most complicated industry where you can make a huge amount of profit. But most of the traders are struggling to make money on regular basis. Out of every 100 traders, only 5 of them are making a consistent profit. If you look at the professional Singaporean traders then you will notice that all of them have very precise knowledge of this industry. They all know that without having a clear knowledge of this industry it’s nearly impossible for them to make a profit. But the novice traders don’t realize this fact and thus start their trading career without knowing any details of this market. Now, will give you some amazing ideas to deal with the highly volatile market conditions.
Requotes in trading
If you are trading the high volatile news release then you might often face requotes. For instance, if you open a long order in the EURUSD pair then during the FOMC meeting minute you have noticed that you have 40 pips profit in your trading account. So it’s very normal that you will try to close your open orders in the market since you have a decent amount of profit in your portfolio. But when you try to close your trade you are getting an error message that of quotes and eventually you failed to close your trade at 40 pips profit. So after 2 -3 minutes you saw that your trade is at negative 40 pips which are huge loss for you. You did everything right but due to the technical difficulty, you were not able to close your trade. Sounds really frustrating. Don’t worry we have some solid solution to deal with such circumstances.
First of all, you need to set your stop loss near at the breakeven level once the trade goes in favor of you during the event of the high impact news releases. Sometimes you will have trouble to place the stop loss but it’s much easier than closing the trade. So in this way you can easily book a certain portion of profit or avoid losing money during the extreme level of volatility.
The second solution is the partial closing system. Instead of trying to close the whole trade you can try to close your trade using the partial closing system. Once you have closed a partial amount of your trade then you should move the stop loss to the breakeven level. However, after the high impact data release goes against you then you should not use the partial closing or break-even system. Instead of this, you should try to close your trade at the best possible available price to minimize your loss. Trading is all about money management. If you fail to use proper money management in CFD trading trade then it will be nearly impossible for you to survive in this industry.
Trade with a reputed broker
Most of the time the major problems occur with the low-end brokers during high volatility. For this reason, the experienced professional always trade with a high-class broker like Saxo so that they can experience the best possible price feed without having any major slippage or issue. If you think that the high-end broker is charging a little bit high then you are not a professional. If you can execute profitable trade than their commission and fees should be very negligible to you. So make sure that you are not comprising the quality of the broker for high commission or charges.
No matter how well you trade the market there is no other alternative other than following proper money management in every single trade. This is one of the key ingredients which will save your trading capital in different market condition. However, if you are completely new to this market then never trade the market with real money rather learn the art of trading by using a demo account to save your investment.
