Trading ETF’s has always been a challenging task. Rookies always make things complex because they don’t know the proper way to trade ETF’s. But if you take a look at the top traders in the world, you will learn to trade the ETF just like the experienced traders in Singapore. But learning to take the trades with precision is not going to make you rich. You must have the ability to deal with losses and only then can you become a successful trader. Let’s explore 5 amazing tips to help manage the risk.

Use 1:10 leverage

You need to 1:10 or less leverage to ensure the safety of the fund. Taking too much risk and trying to win big trades is not the action of a professional trader. You have to remember the fact, the elite traders can make money because they know the proper way to manage the risk. They never take too much risk since they focus on the core factor of the market. But if you take the time and focus on the low leverage account, you will learn to trade with discipline. It will help to protect youttrading capital and make you a professional trader.

Trade with the trend

In ETF trading, you should always trade with the trend. Taking trades against the major trend is like a suicide mission. Though you won’t be able to filter out the trend with a high level of precision at the initial stage if you can do the proper market analysis and use the best tool, it won’t be a difficult task. Feel free to view page atSaxo and you will learn a lot about the professional trading environment. When you start taking trades with the trend, you won’t be having any trouble to deal with the loss. The win ratio will increase to a great extent and it will help you to earn more money.

Trade with 2% risk

The professional ETF trader always encourages tot trade with 1:2% risk. Being a rookie trader, you should not increase the risk of more than 2% as it will force you to lose more trade. But if you lower down the risk to 1%, you will be able to execute high-quality trades without having any trouble. This will allow you to trade with discipline. Some of you might think taking the high risk is the only way by which a trader can make a profit. But in reality, having a high-risk trading method is the main reason why trades blow up their accounts. Think about the safety of your trading capital before you take trades and try earning some money.

Trade with a balanced trading system

Did you know the trading system defines your risk managing policy? You need to trade with a system that allows you to take trades with a 1:3+ risk to reward ratio. Taking trades with negative risk to reward ratio or trying to earn money by following an aggressive approach will cause big trouble. To ensure safety of your capital, you must realize the importance of proper risk management in trading. Though it will be tough for many traders, it is the only way you can secure your trading capital.

Trade with discipline

No matter how good your risk management plan is, if you fail to follow strict discipline in each trade, it will be tough to make money. The majority of retail traders are failing to earn money because they break the rules of their trading system. To them, rules are nothing but an obstacle to making a big profit. You need to forget this idea and take trades whilst considering about the importance of discipline. If you can strictly follow the rules. Only then can you make a decent profit without any trouble.