In the game, there’s no way for cutting loss. Every time you place order UP or DOWN, you accept to bet all the money you invest. Therefore, how you manage your investment is really important to your account and emotion. In this article, Olymp Trade Club will introduce some strategies of capital management in Olymp Trade. Then we will give some methods so that you can avoid being too emotional in trading.
- 1 Capital management strategy in trading at Olymp Trade
- 2 The importance of capital management in trading
Capital management strategy in trading at Olymp Trade
Invest a certain amount of money and never change your investment in an order
This is how you invest efficiently when you trade. You do not need to change the amount of money. You just keep a certain number of money for an order. This method let you subjective to every UP and DOWN order. You can analyze and make detail strategy based on this method.
When you spent a long time playing Demo, you will know your probability of winning. Knowing the probability of winning or losing in Olymp Trade and investing a certain amount of money can help you fulfill your purpose.
Noted: To be success with this method, you need to create a standard strategy which can give you 60% of winning (6 for wining and 4 for drawing in 10 orders). If your Olymp Trade trading strategy only bring you under 60% of winning, this method is not suitable
Increase your investment when you are on the way of winning
Experienced traders like to play Olymp Trade with this strategy. It is just like when you are right, you continue to be right. For example, you have an amount of money of 100$. You will place one order with 10$, pay out with 80%. If you win this trade, you get 18$. You continue with 18$ for the next order, you get 32.4$ if you win. In the third order, you trade with 32.4$. If you win, you have 58.3$. If you lose, you only lose 10$.
This is the rule of compound interest. You use your profit to invest in your trade. You only have to win 3 times continuously, you can be capable of making up for the next 5 times of trading if you lose.
If you are newbie, this method is not suitable for you. Although it does not affect you mentally because you only lose a small amount of money, this method is not reasonable. Keeping money is more important than earning money, you need to respect what you earned. When you win too many times, you can easily get conceited. When you sleep on your victory, you have to pay the price.
If you are the experienced and your probability of winning is high, you should use this method because the experienced understand that: less orders, earn better. Place less orders help them earn more money. Therefore, when you place less number of orders but with more accurately, you should increase your invest the next trade, and 2 or 3 orders a day is just enough.
Martingale strategy in Olymp Trade
If you are yet to know about Martingale, you can try reading this article: Martingale, the most idiotic strategy when coming to capital management in trade
A lot of people say that Martingale is not efficient. Increasing your investment when you are loss is just a mistake. This is right. When you lose, you want to take back, you will fall into a vicious circle of trading and losing more money. If you win, you can make up for the loss and earn some profit. If you lose, you get nothing but a bare hand. That’s why this strategy is not seen as an intelligent strategy
On the other hand, a lot of traders choose this strategy. Why? You can take a look at this article about “The combination of Pin bar and support/ resistance, how make to an accurate reversal strategy in Olymp Trade”. Every time Pin bar appears, the probability of success rises to 90%. If you lose once, you can increase you investment next time. It helps you take back you money and earn some profit. Besides, it goes along with the discipline: the less you play, the better investment you can make. You may trade in Olymp Trade all day but you only have 2 or 3 chance to win, so you should use Martingale strategy to utilise all of the chances.
In conclusion, Martingale is an art. If you just play by luck and trade continuously, it does not work, but if you are patient and respect your discipline, right action right time, you can earn profit and make up for loss
Trading in Olymp Trade by sense
Do you believe in your sense? If yes, you should not play Olymp Trade because you will alway feel that you are right in all choices, and invest money into those. It is dangerous
Or you usually see Olymp Trade as a game, once in a while, you log in and place an order with 1$ just for fun. But when you see the support/resistance zone or indicators for reversal, you invest 100$ to make a big deal.
In the eyes of the experienced, this does not only go against discipline but also is a waste of time.
The importance of capital management in trading
It is not only Olymp Trade, no matter which trading platform that you join in, the only unchangeable method to win is that you only bet your money for the highest probability of winning point. The game needs your patience for chances and if your do not know how to invest, you will run out of money to grab the chance. The market is not different but the chances to see good indicators only come a few time on a day and you need money for these moments.
That’s why you should choose for yourself a suitable way of capital management and give priority to the safety of your account
In the game of probability, there is no 100% of winning. You have to get yourself not only a method, but also a strategy of capital management so that you can create yourself a pattern for placing order. This is the main orientation for your success of earning money in Olymp Trade
Wish you all the best!