5% Investment Plan for Forex Trading India
With any form of trading your goal as an investor or trader is to win more trades than you lose. Let’s face it, you will never win every single trade you take, all traders will experience losses at some point, however your aim is to have success.
For new or inexperienced Indian forex traders we recommend you keep your trading consistent and help remove emotion for your trading decisions by risking no more than 5% of your account balance on any single fx trade.
You may have heard of the 2% Rule before that many traders use when trading the stock market both in India and abroad, however we find this is not appropriate for forex trading given forex tends to require a lot less trading capital compared to traditional trading in the share market. This rule also applies when trading binary options or trading a CFD. It also applies for not just forex (FX) but trading gold, silver, indices, oil, commodities, Bitcoin and other products your forex broker will offer on the online trading platform.
Here is an example of the 5% rule to give you an idea of the maximum size of each trade you should be taking based on your account balance with your forex broker (please note that your broker will have a minimum and maximum single trade size, please check with your broker) –
|Account Balance||Maximum Investment Per Trade|
Your capital is at risk.