In any business, one of the greatest obstacles is the ineffective management of risk. Alex Gonzalez is a competent and passionate swing trader, and he states that to become a successful trader, you need to develop a free state of mind and understand how to manage risk effectively.
The first tip for risk management is educating yourself as much as possible. In the trading industry, there is always something new to be learned. Next is limiting your use of leverage. Alex Gonzalez, a 21-years-old first-generation American, explains that you should not over-leverage your account, aiming to make thousands of dollars a day before understanding the market well. The third tip is controlling emotions because the trading psychology entails numerous common principles. If you cannot control your emotions, it means you cannot abide by the numerous rules and strategies of trading.
Furthermore, Gonzalez explains that experience helps reduce risks in business, and you should appreciate the wrong decisions because they are actually learning experiences. Lastly, traders should stick to the trading strategy which works best for them. Alex Gonzalez prefers being a swing trader, meaning he is on higher time frames looking for bigger moves that guarantee bigger returns.
Alex Gonzalez grew up with the perspective that great opportunities always come to the people who work hard and believe in achieving anything. He was first employed at the age of 15 and later got a part-time job that required him to work for 65 hours weekly. During this time, Gonzalez saved enough money to open a rental arbitrage with a partner, which was later bought at a good amount by an investor. Gonzalez used his share of reimbursement to study and venture into the financial industry. Today, he is a full-time trader and trainer of foreign exchange markets.
Proper risk management is an absolute necessity in trading. Alex Gonzalez, a passionate trader who runs live mentorship advising people on trading, has offered valuable insights here on how to mitigate this challenge.