Tip to Investors

Trading in speculative markets can lead to very quick and substantial profits or losses. At times it is possible that you may lose more than what you have invested in these markets. Reason behind this is improper management of funds. A good rule of thumb is to use only funds that you can afford to lose without affecting your lifestyle. In other-words the amount invested in these speculative markets should be only a part of your surplus funds. And this fund should carefully be diversified into various portfolios.
Remember not every trade will be a winner. Some very successful traders may only win 30%-40% of their trades, but still they are able to fetch hefty returns. The secret behind this is, they efficiently manage their risk in rest of the trades. The key is to cut your losses short, and always follow the rules of money and risk management.