When you are not lucky! How EagleTrader Forex Traders Control Risks

Every trader has been lost in trading, struggling in the pain of stop loss, and repeatedly asked himself in the ecstasy of profit and the unwillingness of loss: How can we go further in this game with human nature? EagleTrader
Trader Ma Huitao used nine years of trading experience to understand how real traders should live with the market and how to find their own opportunities in fluctuations. Let’s listen to his trading thoughts and learn his trading philosophy.

Ma Huitao trader has entered the foreign exchange trading market in 2016 and has had nine years of trading experience. Along the way, interest and desire for financial freedom have always been his motivation to stick to trading. As the market changes, he constantly honed himself, improved his trading skills, and finally decided to manage his EagleTrader profit-sharing account in full-time state.

The key to long-term profit

In terms of transaction decisions, he is well aware of the importance of various analytical methods and allocates a clear proportion to his decision-making system: fundamental analysis accounts for 40%, technical analysis accounts for 30%, experience accounts for 20%, and intuition accounts for only 10%. In his opinion, market analysis is the cornerstone of trading, while experience and intuition complement the details of trading.

Fargo long-term profits are the goal of all traders, while Ma Huitao traders believe that the key lies in strict risk control management. He stressed that market uncertainty cannot be completely eliminated, but through reasonable risk control, losses can be controlled within an acceptable range. The last time his trading strategy was adjusted significantly in April 2023, when he focused on improving success rates and began to tend to hold longer cycles of trading orders.

Rational trading attitude

Faced with the luck factors in trading, the traders Ma Huitao are very rational. He believes that market signals determine trading decisions. If you make a profit, it is the blessing of luck, but if you lose money, you need to find opportunities again. Luck is inevitable, and what traders need to do is make sure the technology is in place so that risks can be controlled when luck is not good.

When dealing with heavy trading, he always follows the principles of market changes. If the position is too heavy and the market trend isWhen there is a change, he will decisively stop the loss and look for opportunities again. On the contrary, if he makes a lot of profits as planned but the profit draws back 30%, he will close all positions without hesitation to ensure that the profits are in pocket.

The profound experience brought by years of trading

As a senior trader, he admitted that he had experienced a liquidation, which was a frustrating and regretful experience. He deeply felt the harm of luck and was particularly vigilant in his subsequent trading career to ensure that he strictly abide by the trading plan. He firmly believes that only by formulating a clear trading plan and strictly implementing it can we survive in the market for a long time.

He has unique insights into the stability and volatility of the market. In his opinion, a stable market does not mean that there is little volatility. What really matters is whether the market provides enough profit margins. For traders, the greater the volatility, the higher the profit potential, so they prefer markets with more volatile nature.

He always maintains a cautious attitude in risk management. Assuming the risk that can be taken is 100 points, he is willing to take only 1 to 3 points per transaction on average. His experience tells him that it usually takes one to two weeks to return to the previous net worth high after the account experiences the maximum retracement.

Trading Suggestions

The biggest gain of Ma Huitao traders taking the exam this time was that they developed stricter risk control and management. He knows the importance of risk control to traders’ survival and hopes to share this concept with all newly joined EagleTrader traders. His advice to new traders is: risk control is always the first priority, and secondly, to find the trading method that suits you the most. Only when risk control and strategy are combined can traders be invincible in the market.

Ma Huitao’s trading philosophy does not have a profound theory, but only a clear mind that directly hits the essence: the risk control line is the lifeline of survival, strategy is the ladder of profit, and discipline is the bridge connecting the two. His experience tells every trader: liquidation is not the end point, but the opportunity to reshape cognition; fluctuations are not the enemy, but the soil for profit.

In this market full of temptations and traps, true masters never compete with the market, but learn to reconcile with themselves – tame greed with reason and resist fear with rules.