The first and most important consideration, is to only use capital you can afford to lose. You are trading with leverage and your losses can exceed the amount you originally started with. It follows if you start using too much leverage, say by betting at 10 GBP per point instead of 2, you may be likely to be required to top up your account. It would then make sense to protect yourself with a stop loss order.
​How does a stop loss order work? It means It means ticking the stop loss box or pressing the button and choosing the price or level where you want to exist the trade if it starts going wrong. It is also possible to use guaranteed stop loss orders, where at a cost, some brokers will allow you to close your position guaranteed if gasping occurs. In volatile markets these may be a good idea.Our recommend platform provider also has explanations on how stop-loss orders work on their pages, it's always a good idea to look at their FAQ pages.
But only if the market is right for you.
There is no point trading forex if you're at your desk for hours on end and unable to track your position. Forex markets can be notoriously volatile so considering other markets where historically you can see the price hasn't budged by too wider margin to make you lose sleep might be a better option.
Shares can fit this bill. but, that's not to say an adverse event like a Director being found to be corrupt won't subsequently adversely affect the price of the share negatively.So once you've decided that the market and chosen shares are righ for you, it becomes your responsibility to keep track and look to see where you are going in terms of the trade is likely to meet your goals or if you'll need to take a loss.
How do you currently monitor your share portfolio?
Over the longer-term, reading reputable sources every day won't be crucial, however, the only way to be successful is to watch where you're going as often as you can. Even if it's only for 5-10 minutes.
Reading reputable sources will give you a great idea not, just about sector developments, innovations that could give you investment ideas and anything untoward that could transpire to negatively affect your progress but, also on a fundamental level, you'll be more clued up than the average person.
