Before thinking about making money, you need to learn how to protect the money you have. It’s the tip to help you never lose money in Olymp Trade.
This is true for all cases, not just trading. A survey shows that 100% of traders who first started trading lost at least once. And I am no exception. But after all, I make profits from trading Olymp Trade.
Therefore, I would like to write down these lines to share how to protect your money when trading in Olymp Trade. You can apply it to any trading platforms in which you join.
Transaction history of the past 2 days in Olymp Trade
On July 16, I opened 6 Forex orders: 1 draw, 2 wins, and 3 losses. I did not earn any money. Just today, the chain of withdrawing $50 every day in 20 consecutive days has been broken.
On July 17, I opened 3 orders: 1 Forex and 2 Fixed Time orders. I won all 3 orders and earned more than $50. This is proof that I withdraw money from Olymp Trade to my ACB bank account.
And now, please look back at this article title again: 3 tips to never lose money in Olymp Trade. At first, if you’re afraid of losing money, it’s best to never join it. However, after losing and you want to know how to gain back, do the following.
Never go against the trend
There is a Lodestar for you to earn money in trading. Follow the trend, we will make money. Going against the trend will definitely make you lose your money in Olymp Trade. This is the law, the rule in trading. This is all I have repeated from time to time in my articles. You can review it at the links below:
If you intend to fight the trend or trade against the market trend, please read the example below:
- What Is Uptrend? 3 Safest Strategies To Open An Order In An Uptrend.
- What Is Downtrend? How To Verify And Trade In A Downtrend.
April 20, 2020, is a historic day. Why do I say that? Because most professional traders lost money on that day. They used to make lots of money from trading platforms. Lessons like Downtrend and Uptrend are what they grasp in the palm of their hands. But on that day, they did everything oppositely.
Oil prices fell below negative. For the first time in human history, not only did the buyer not pay for the purchase of the oil, but he was also paid for by the seller. But don’t care about the oil market, let’s see what traders with oil as assets did. They opened UP orders. When the price dropped to $5 per barrel, they opened UP orders. When oil prices decreased from $5 to $0 per barrel, they continued to place UP orders. Oil prices then dropped from 0USD per barrel to -5USD per barrel. Then again, it plummeted to -10USD per barrel. Finally, it stopped at -40USD per barrel. Most counter-trend trading accounts lost money.
Naturally, when we mention this event, we can only say: That is simply history. But for professional traders, it’s a terrifying memory. Lesson learned: Either you stay out, or you trade following the trend.
An order for testing purpose in Olymp Trade
“Never test the depth of a river with both feet.” This is one of the 6 most classic pieces of advice from the billionaire Warren Buffett. And it remains valid to this day.
In trading, we analyze historical price data to predict future market trends. Therefore, all possibilities are possible. Sometimes we are right and sometimes we are wrong. So, you need to “test” the market with a Forex order, which has a stop-loss to protect your money.
For example, You predict that the price is in an uptrend. Next, you will wait for a safe entry point to open a Forex UP order with $20 with the stop-loss at $6. If the market enters an uptrend, your prediction is correct. Your Forex order is profitable. This is when you can open Fixed Time Trade orders or more Forex orders. In that way, your account will be very secure.
It is what I did on July 17. The EUR/USD broke out of the resistance and entered an uptrend. I opened a Forex UP order. When the price went up as predicted, I started waiting for signals to continue placing 2 UP orders at Fixed Time Trade.
A specific stop
Once again, it is about a stop. A lot of this series posts have repeated from time to time about where to stop. But in fact, if you don’t have a stop, you will never be able to control your emotions. This is truly the best way to limit losing money in Olymp Trade.
For example, I have a habit of stopping when I win $50 or lose $30 in Olymp Trade. I have won and withdrawn $50 from Olymp Trade account to the bank account many times. But losing $30 in a day almost never happened.
Reason: With the investment amount for each Forex order of $20, I always set the stop-loss at $6. So, to lose all $30 in 1 day, you have to lose 5 consecutive orders. If you trade and lose 5 consecutive orders in Olymp Trade, there are only 2 reasons: (i) Your method is problematic and (ii) You are impatient.
Whether (i) or (ii), if you don’t stop, you will never know where your problem lies.
If you don’t want to lose, never join Olymp Trade. But if you do, you need to remember all the 3 things above. Protecting money is much more important than making money. Because having money means having opportunities.
So, the 20-article series of making $50 every day in a row has been stopped. And today is the 8th lesson that I want to transfer to you. If you want to review the series of articles about making money from Olymp Trade, you can click on the links below:
- How to make $1,000 in Olymp Trade: Safe, stable, and easy to carry out.
- 5 Basic Principles When Trading In Olymp Trade (Part 1/20).
- 4 Things To Prepare Before Starting Trading In Olymp Trade (Part 2/20).
- The Easiest Way To Make Money In Olymp Trade: Determine The Trend (Part 3/20).
- Unbeatable trading strategy in Fixed Time Trade: Trend + Signal? (Part 4/20).
- Practice trading in Olymp Trade easily and safely: Uptrend + Retest (Part 5/20).
- 3 Forex trading skills in a downtrend in Olymp Trade (Part 6/20).
- Make money in Olymp Trade: Be patient or die (Part 7/20).