If you are a beginner, take an idea and develop yourself!

It is important to learn some basic concepts that will help you build your trading strategy. Capital management, market analysis, and proper trade allocation are essential to achieving success and reducing risk.

Always learn and develop your skills, every step towards a deeper understanding of the market makes you a more professional trader! 🚀💡

Money management is an essential element in opening your trades, and it is an important part of building your strategy. When you have completed your analysis of the market and understood its movement pattern, you will have a clear goal for opening trades.

The difference between a beginner and a professional trader

A novice trader may invest his entire capital in one trade, and if the price rises, he makes a profit, but if it falls significantly, he loses everything without being able to compensate.

A professional trader understands the market well and determines the risk ratio before thinking about profits. He asks himself: "If the market goes down, what will be my loss ratio?"

How to manage capital wisely?

To become a successful trader, you should focus on analyzing the market in depth before opening any trade. Identify the currency’s key support points, as well as the levels you expect it to reach based on the market movement and your technical analysis.

Dividing capital into several deals:

Instead of investing all your capital in one entry point, divide your investments into several levels. For example, you can set 3 or 4 entry points according to the currency movements.

Practical example:

Let's say you are trading with $100 and you expect your first entry point to be 30% profitable but 70% risky. In this case, don't enter with your entire capital at this point, but invest only a certain percentage of it.

Capital Allocation Strategy:

First entry point: Invest a small portion of the capital, because it carries a high risk.

Second entry point: If the price drops and reaches a stronger support point, increase your investment size.

Entry point 3: If the price continues to fall at a stronger support level, invest the larger percentage, because the probability of a rebound is higher.

The aim of this strategy:

✅ Reducing risks and distributing them over different stages.

✅ Increase your chances of profit by entering the market at different price levels.

✅ Ability to compensate in case of unexpected market movement.

One last tip:

Market analysis is not just a prediction of price increases, it is also a prediction of potential risks. If you only think about the profit ratio without taking into account the loss ratio, you may find yourself in a situation from which you cannot recover easily. So, before each trade, determine your entry points based on your analysis and make sure to distribute your capital wisely.

I hope this information is clear and useful, and if you have any questions, I am at your service! 😊