Forex trading on multiple accounts
Some traders who already have considerable trading experience prefer to trade on two or more trading accounts. As a rule, they are opened with different brokers. Practice shows that trading on multiple accounts has its advantages. First, in this way you can diversify your risks. Losses received on one trading account can be offset by gains on another trading account. And secondly, opening accounts with different brokerage companies provides the trader with the opportunity to take advantage of different promotions and bonuses, and thus get profit. However, in order to trade on multiple accountswas effective, you need to know about some of its rules and features. I want to tell you about them in this article. The information can be useful to both novice traders and those who already have quite a lot of experience in trading.
Trading rules on multiple accounts
It is not recommended to open the same trades on all accounts. Such a temptation arises for a trader if he believes that the signal received in his trading system is very strong. The probability that the order will be closed profitably is quite high. The trader decides to increase the potential profit by 2-3 times, depending on how many trading accounts are open. But we must always remember that the foreign exchange market does not give any guarantees. The situation can change suddenly and very quickly. And then the trader will receive a triple loss instead of a triple profit. No matter how reliable the signal may seem, duplicating trades is dangerous.
You should also not open trade deals on two accounts in the opposite direction with the same volume. One of them will definitely be closed at a loss. It is not uncommon for traders to use this tactic in bonus programs. After all, bonuses are not so pity to lose. But why do this if you can earn money in trading bonuses.
The best option in this kind of trading is to open unrelated trades. That is, you need to select currency pairs that have no correlation with each other. It is advisable to have its own working asset and trading strategy for each trading account. In this case, you can reasonably expect an increase in income.
Trading on multiple accounts requires a lot of attention, discipline and emotional stability from the trader. If there are no such qualities, then we need to work on their development. When installing trading terminals of different brokerage companies on your computer, do not forget that each program must have its own catalog.
And the last thing. This method of trading requires trading experience. If you are a beginner trader, then take your time to open multiple trading accounts. First, you need to learn how to trade profitably on one account.