Money Management Tips for Trading Volatile Markets
Financial markets had been increasingly volatile in 2020 and because of that, money management became even more important for retail traders. For those worried about recent volatile markets, risk can be managed even during difficult times, and the best way to do it can be summarized into 4 simple tips. Tip #1 Analyze risk and then reward Although large price moves can create FOMO (fear of missing out) and enthusiasm among beginners, this isn’t the right trading approach. A professional trader will first analyze risk and only then the potential reward. In doing so, a lot of trading setups will look like “missed opportunities, but in the longer run, ignoring risky situations will result in a smoother performance, lower account … Read more