While trading in Singapore for CFD, you need to consider cutting your losses. Though it is a difficult part, in case things don’t work out for you, you have to ensure that you don’t start to chase your losses and that you get committed to the strategy you had in the beginning. Chances are that you are going to make worst mistake when you want to win back and become emotional concerning what you lost.
You shouldn’t do that. Come up with rules and ensure that you stick with them. An example is where you decide to set a stop loss at 10% below your purchase price, you should not deviate the plan just because you are a fan of the stock and you feel convinced that it is likely going to do well.
Leverage is known to work both ways. When you use leverage, you can invest more than you have. It is a nice feature but it needs you to have an approach which is responsible. Are you ready to lose everything that you have in your account? if that is not the case, then you have to ensure that you tread carefully with the leverage ratio.
