Essential Guide to Trading and Risk Management🎯
Understand the Basics of Trading 🔑 Trading is the act of buying and selling financial instruments—stocks, forex, commodities, crypto—with the goal of making a profit by buying low / selling high (or short‑selling).
Practice with Paper Trading 📜 Start in a risk‑free demo environment to learn mechanics, test ideas, and build confidence before risking real funds.
Set Clear Goals & a Plan 🎯 Define what you want to achieve, how much capital you can risk, and the rules that govern every trade.
Understand Your Trading Signals 🚦 Never follow indicators blindly. Back‑test them on historical data so you know their strengths, weaknesses, and win rate.
Diversify Your Portfolio 🌐 Hold multiple asset classes or strategies so one loser doesn’t sink the whole account.
Risk Management 💼 Limit exposure—many pros risk only 1 – 2 % of account equity per trade.
Use Stop‑Loss Orders 🛑 Stops cap downside automatically and remove emotion from the exit decision.
Be Patient 🕰️ Markets can be volatile. Stick to your plan and avoid impulsive trades.
Keep Learning 🎓 Study new techniques, read market news, and refine your strategy as conditions change.
Maintain Emotional Control 😌 Fear and greed are profit killers. Follow your rules—don’t chase or revenge‑trade.
Review Trades Regularly 🔍 Log each trade and analyse what worked or failed to continuously improve.
Know Your Indicators 📈 Indicators reveal trends and momentum, but they’re tools—understand the math before relying on them.
Recognise Your Unique Style 🔧 Risk tolerance, time horizon, and psychology differ for everyone. Back‑test Infinity Algo settings to fit your style, then adapt as markets evolve.
Last updated