Risk management tools and techniques

Trading in the FOREX market is exciting, but what makes it so exciting is what makes it risky at the same time: volatility. Some trading strategies depend heavily on this volatility and trade at high frequency in the hope of taking advantage of it, but exposing the capital to volatility can lead to losses.

However, there are ways to protect your assets from volatility: with a variety of tools and techniques, you can manage and export them only to the level of risk you know. First of all, knowledge is the best risk management tool that every operator has in his arsenal. If you know which economic and geopolitical events have taken place, will happen or will happen, you can dynamically adapt your strategy and business objectives and execute them if necessary.

Find out when the lever is your friend
Leverage is a tool used throughout the financial sector and very often in FOREX, remember that leverage can multiply your profits, but it can also multiply your losses. It's only because you have access to a high leverage that you know when to use it to keep you from crossing the risk limit.

Custom notifications
Some trading platforms allow user customization in the form of EA (Expert Advisor), programs that can perform various functions in the trading environment. One of the features that EAs can do is send notifications to traders if their position or instrument exceeds the established price levels. Some EAs even allow positions to be closed or opened automatically, but this automated process can expose you to even greater volatility caused by unexpected geopolitical events or a sudden change in market sentiment, so it's important to pay attention. when in use.

Become your therapist - corporate psychology
A commonly used term, simply said, is to enter or exit a position or act too early or too late, which leads to unfavorable results. A good example of this often occurs when an instrument is removed but not completely reversed, causing the trader to panic and exit a transaction to see the price of the instrument recover immediately afterwards. Another example is when market sentiment raises the price of an instrument, causing traders to jump on a "train" blocked at the station (in this analogy, the station is the current price of the instrument when you open the position).

Be your director - discipline
This may seem like a more applicable advice to a mystical form of martial arts, but if you ask an experienced investor, he will no doubt cite the "discipline" as an important element in achieving your investment goals. Developing a strategy that defines both your goals and your risk appetite is only useful if you stick to it. Having a twisted reaction to sudden market swings is almost a sure way to expose yourself to unexpected and unexpected risks.

Safe ports are your friends - during market volatility
A few years ago, George Soros wrote that gold was the final bubble, but a few years later, he invested in an SPDR Gold Trust with excellent results. Currencies and safe raw materials have been the vehicle - well, a refuge - for serious, experienced and competent investors in times of unstable markets. What is the best manual for getting a page from the book of serious investors, like Soros.

Stop loss limits
This is a tool commonly used by risk management traders: it is a user-defined level that automatically closes the position when the appropriate loss level is reached. For example, you can set the stop loss limit at 10% less than the price the instrument had when you opened the position, exposing only that equivalent of your initial capital to this loss (plus brokerage commissions generated by open and closed positions) ).

DealCancellation - Cancel a losing offer
Most brokers offer solutions to minimize risk exposure, but easyMarkets offers traders the opportunity to lose with a single click. If the stop loss is reached before reaching the limit of the contract cancellation period and the invested amount is still obtained. When you open the transaction, click on dealCancellation and you can cancel your order within a set period with a small commission. 

9 money management tips to manage your small business

No entrepreneur likes to be tied, but there is an incorrect cash flow. Almost half (42%) of small business owners say that managing cash flow is a challenge. If you have problems managing small business funds, see the money management tips in this article.

What is financial management for small business owners?
Money management is the process of managing corporate finances through budgeting, goal setting, expense and revenue monitoring and investments.

With a good money management plan, you can avoid negative cash flow periods and make sure your business is on the right path to profit.

If you do not manage money wisely, it can lead to problems such as late payments, more money and no collection from your debtors.

Money management tips
To keep your business running smoothly, you need enough money to cover your expenses. Use these nine tips to learn how to manage your money effectively in a small business.
1. Keep yourself informed of deadlines
If you don't know when your bills are due, like creditors, commercial loan payments or credit card payments, you may not have enough cash at hand. Not to mention the fact that no one knows when the invoices are due, it may be necessary to face late commissions or additional interests, to reduce the trade credit, the acid financers and the relationships with suppliers.

Stay informed of deadlines to avoid non-payment of invoices. Set payment deadlines and set reminders so you don't fall behind. Draw deadlines on a paper, telephone or IT calendar and ensure a consistent payment schedule.

2. Monitor spending
Do you know how much money you spend per day, week or month? If you do not monitor the expense, you can collect unnecessary invoices. And if the expense is not controlled, it can lead to excessive costs and abuse of funds.

Many entrepreneurs have multiple accounts, such as a checking account, a savings account and a credit card account. Make sure you know how much you are withdrawing or spending on each account to keep track of account balances.

It's easy to use your business credit card, debit card or checks to cover small expenses. A breakfast for the staff here, a new coffee machine for the break room there ... But the small expenses are good. If you don't keep track of your expenses, you may receive a large invoice for which you are not prepared.

When keeping track of expenses, you should also consider unpaid checks. When writing a check, the recipient must not cash it immediately. If you forget to check your expenses, you could end up with an account and be in red.

Keep track of your expenses by managing your accounts. You can use simple software to record accounting transactions. When you record your expenses, you can easily keep track of expenses.

3. Don't forget the debtors
If you offer credit to customers, you know that you may not receive money for goods sold or services provided until or after the expiration date. After a week or a month, it can be easy to forget about progress. But if you want to manage your money better, you have to remember the money due to your business and make payments.

Write this down in your books to remind the debtors. Overview of credits to keep track of total credits. An overview of the credits shows which customers owe the company money, the amount owed, the customers who have exceeded the deadlines and the total credits.

While monitoring your progress is essential for intelligent money management, receiving payments is even more important. You can continue payments by sending invoices and expired messages to customers. And if your company needs cash before the expiration date, you can offer a discount on prepayment.

4. Individual company and personal funds
Do you have a separate corporate bank account? Even if you do not have to separate professional and personal funds, this is essential for money management. In addition, company bank statements are used.