Always be disciplined in following the rules of Safe Capital Management
One thing that is certainly a consideration in running a business is capital, of course you need to pay attention to this, especially when you are trading. In fact, you don't only have to pay attention to the following things in trading, but in various forms of business or business.
Capital Management in Trading
One of the key success factors in trading forex, stocks and gold which always generate profits every day is discipline in following the rules of safe capital management.
The rule of capital management that is safe and most often used by professional traders is to only use a minimum of 1% and a maximum of 5% of existing capital to make trading transactions.
What you also need to pay attention to here is that the actual total trading capital is the capital that is in the Equity section when you are trading or not capital in the form of a balance in the account.
So, when making trading transactions, you must always pay attention to and control the capital in the Equity section so that you are protected from Margin Calls (MC).
Margin Call is an event in the form of bankruptcy of all the capital in the Equity section in trading forex, stocks, bitcoin and gold which often occurs automatically. until it hits a level below 100%, margin calls will be more difficult for you to avoid.
An example of implementing safe trading capital management based on the amount of capital in the Equity Section
If the capital in the equity section is 1000 before you make a transaction to open a trading position, then when you make a transaction to open a trading position, you should only use a maximum of 5% of 1000 (Equivalent to 50 Margin used).
The used margin here is the margin provided by the broker based on leverage for your trading account in the form of loan funds from the broker which is deliberately provided by the broker to help increase the ability of traders' capital to make transactions with a larger number of lots.
Or at least, you follow the safest trading capital management rules, that is, only use a maximum of 1% capital to make transactions to open trading positions that you think have a high chance of making big profits.
The final word
So, those are things you can or things you need to pay attention to in running a trade, especially in your business. That's all and good luck!
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