Risk Management Strategies for Single Stock CFD Traders
Although it is true that Single stock CFD trading is a strategy that can be mistaken for risk. And some of the most effective strategies are those which allow you to take more risk at higher leverage. The following are some of the things to do on this: Stop-loss and Take-profit Orders: They are crucial for the trade. A stop-loss order closes your position automatically when the price moves against you, thus your potential losses are limited. The take-profit order sets the gains you want to make and the price that is reached is the target. Position Sizing: Never put everything you have into one trade. A standard way to work is to set a maximum risk, that is, the amount you are ready to lose in case the single trade is not successful, and to determine it, for example, at a level of 1% or 2% of your account balance. By such a method, you could avoid being ruined by a series of losing trades. Risk-Reward Ratio: Just think about...