Tag: risk management

List view Grid View
16 Feb 2018

Do You Have a Cut-Off Point?

IC Markets No Comments Tags: , , , , ,

There will be times a trader finds themself caught up in the motions of trading that they lose sight of the primary objective: protecting capital. A trader’s cut-off point is the point in which a trader’s pre-determined risk tolerance is met. Think of it as a pressure relief valve. Like a boiler has a pressure … Continue reading Do You Have a Cut-Off Point?

13 Oct 2017

How to Build a Trading Plan: Part Two

IC Markets No Comments Tags: , , , , , , , , , ,

As briefly highlighted in part one, the staple behind any respectable trading plan will place a strong emphasis on risk and money management principles. What is your overall market risk? Overall market risk is the maximum permissible amount of capital at risk at any one time. As an example, let’s say that we have set … Continue reading How to Build a Trading Plan: Part Two

07 Aug 2017

Trading Psychology: How to Begin Thinking Like a Professional Trader

IC Markets No Comments Tags: , , , , , , , ,

Learning how to regulate psychological conflicts is as important as developing a well-defined risk/money-management strategy and trading methodology. Having all components function side by side is paramount to successfully trade. Unfortunately, trading psychology is often overlooked. Many traders mistakenly believe developing solid trading methodologies is all that’s required to profit. If you’re incapable of regulating … Continue reading Trading Psychology: How to Begin Thinking Like a Professional Trader

14 May 2017

What 2% a month can earn you

IC Markets No Comments Tags: , , , , , , ,

Legend has it that when asked to name the greatest invention in human history, Albert Einstein replied ‘Compounding interest’. Whether Einstein actually said this or not, we would certainly not be one to disagree! In simple terms, the compounding part comes from the interest you earn on the interest you’ve already earnt.     As … Continue reading What 2% a month can earn you