Capital Management Strategies You Can Use For Trading On IQ Option




The risk of losing your money when trading the financial market is always there. The moment you enter a trade, there is always a 50/50 chance of it going either way. You can exit a trade before it expires on the IQ Option platform. However, this will mean losing a fraction of your money.

Besides trading when the market conditions are favorable, capital management is a necessity if you are to ensure that your account balance is intact. This guide will teach you some of the capital management techniques used by successful traders on IQ Option.

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Investing the same amount on each trade


Losing trades can put a reduction in your account balance. You want to regain your money. Therefore you decide to increase the amount to invest in the next trade. With the hope that it will be a winner and so recover your lost money.

Unluckily, if this trade loses, your account balance will be worsened.

Investing the same amount on each trade is one of the common capital management techniques successful traders used for trading. Take a look at the example below.




If 6 trades out of your 10 trades are profitable, you should be able to make a $8 profit and offset losses.


Use profits to trade


With this technique, you will only use the profits earned to trade. This implies that if your first trade is a winner, the total earnings should be used for subsequent trades.




From the table above, you will notice that the second trade was a lost. However, the potential earning was $32.40. That would be the amount to trade in the next session. The loss was $10, in total. However, considering that the third trade was a winner, the total profit was $15.92.

This technique uses the power of compounding to ensure winning trades offset losses incurred in the previous trades. It’s best for experienced traders who only trade two to three times a day.

However, this is a high risk technique. It involves investing an amount you would have made (but did not) in a trade. If you’re a newbie trader, it’s advisable not to use this capital management strategy especially when you don’t have a huge account balance.

In addition, it’s advisable to stop trading if you make two or three losing trades when using this strategy. Making additional trades can badly hurt your accounts.


Martingale technique


This is probably one of the money management techniques with the most risk. It involves increasing the amount you invest on a trade till you finally get a winning trade. Once you have a winning trade, you should start the cycle all over again with a small amount.

The downfalls associated with this technique are more than the advantages. For example, you may end up losing all your money if you suffer several succeeding losing trades, unless you’ve got loss of capital. Another downfall is that the amount invested cannot be used to justify the profit earned in winning trades. Remember that winning trades have to offset losses incurred in the previous trades.

Below is a working example of the Martingale strategy.




The Martingale technique can work in some instances. For example, if you are trading using resistance levels and support. The moment prices hit the support level, it’s most likely that they’ll bounce back towards the range. This implies that you can expect several consecutive candles of same color. However, if the price breaks, the trading results might go against you.

Therefore, unless you’re very sure of what you’re doing, Martingale system as your capital management strategy is not a good option. It’s best to invest small amounts on a trade and make small winnings rather than invest a huge amount and loss it all.


Trading with your gut


This is also a high risk – huge returns capital management technique. Investing in this technique is simply based on how “likely” you think a trade will look like. For instance, chances of your trade winning are quite high, if you identify a trend. So, you can decide to invest a huge amount on a single trade. However, if you’re not sure of the trade being a winner, you can choose to trade a smaller amount.


Trading Without Emotion


The problem with trading without emotion is that emotions will still eventually get in the way. If you invest a huge amount on a losing trade, fear might grasp you discouraging you from trading huge amounts in the future. Also, if small trades fetches you money, you can end up trading huge sums in subsequent trades due to overconfidence.

The point is, trading with your gut does not really count as a money management strategy.


Why must you have a capital management technique?


As a trader, you must expect days when you will incur losses. But what effect will your loss have on the trading account? If you use a high-risk capital management technique such as the Martingale system, there are chances that a loss can wipe out your entire account.

Your main goal as a trader is to protect your money. This implies that you should do everything you can to ensure that you don’t lose a large sum of your capital on a few trades. It’s therefore very important that your capital management technique have ways of protecting your account from much risk.

For instance, besides having a certain amount set for trading, you must also put into consideration how many consecutive losing trades you’re willing to incur before you stop for a day. In addition, your strategy should state when not to trade and when to trade.


Why Capital Management Is Important


There are different capital management techniques you can use to trade on IQ Option. You can choose one among those described above or create one that meets your trading preference and goals. Trading with IQ Options or any other financial instrument carries some risk. However, it can result in you making good profits if done right.

Trading has to do with probability and you’re not always guaranteed profits. However, employing a good money management technique, you can always be assured that your account will continue to grow.



Most Popular Data Recovery Software


There are many data recovery apps available but some of them are very renowned in the market, others not. This article will enlighten the tope data recovery tools of 2019. To help you recover your deleted data, we have formed this list of top data recovery software. Each software has its own exclusive features with different compatibilities and performance.

The top data recovery software’s are given below:


Disk Drill:


Disk Drill is an indisputable front-runner among data recovery software, you can recover up to 500MB of data with help of this software. This software is developed by CleverFiles, the app can be used to scan internal and external storage devices natively powered by FAT and NTFS file systems, and in fact, any other file system you may think of: HFS+, EXT4, FAT16, etc. 


Recuva:



This software is developed by Piriform. This software has the ability to recover lastingly deleted files although these files have been noticeable as free space by the functioning system. This data recovery software can be applicable on MP3 player, USB flash drives, memory cards, hard drives and also other storage devices that are supported by NTFS and FTS file systems. This app has both 32-bit and 64-bit versions. 

Moreover, Recuva is accessible in both installable and portable form. The functionality of this data recovery software can be boosted by buying a commercial license.
Prosoft Data Rescue 5 for Windows:

This recovery application offers rigid competition to its generations, securing its position in the top 5 apps. Ease is one of the strengths of Data Rescue 5 for Windows. The interface is clean and easy to work with. Again, it performs recovery for just about any file types across all Windows versions on all kinds of internal and external storage devices. This data recovery software also offers a byte-by-byte copy of the disk at the early stage of of a mechanical failure. This software confidently supports windows 7 and later.


Testdisk:



This radical software used to be the standard for data recovery software with its level of functionality and influential recovery characteristics. It was formerly intended as an application that recovers lost panels and fixes disks that were not booting. This made it questionably the best hard drive data recovery software in the market at a point. One of the disadvantages is the fact that it’s a command line tool, which makes it inappropriate for users who are used to an easy user interface. This software enables to rebuild of the boost sector and also works on all major windows versions. Testdisk helps us to recover all popular file like document, picture, video and sound file types.


MiniTool Partition Recovery



MiniTool Partition Recovery is the of the software that recovers not only a partial deleted file, but it can also rescue an entire position. This software is user friendly and its core focus is on its partition level recovery approach and this thing proves very beneficial for the less experienced users. 
Its functioning flow can be done in 3 easy steps:

First, you have to select the target disk and set the scanning range based on the data issue.
Second, you need click “scan”.
Third, you preview the files you want to recover and place the retrieved files on another drive for storage and later use. 

Discovering partition content in advance is also possible. This purpose offers to users the capability to recognize the partition they want to recover without the need for a full scan.

This software formally supporting Windows 10, 8, 8.1, and 7, MiniTool can also run on older versions of Windows such as XP and Vista.


Steller Data Recovery:


The name of this data recovery software directs, Steller developed this data recovery software when it comes to recovering data from Windows terminals and well-matched devices.

Through Steller Data Recovery software, we can recover data from a wide range of devices like smartphones, memory cards, hard disks, and USB drives. This data recovery software can be download easily and users can easily use this software because it is user friendly. This software has the option of beneficial features that allow quick recovery of lost files, documents, videos etc.


Undelete 360:

This data recovery software looks like a distinctive Microsoft Office application because it has a ribbon-style toolbar and blue color theme. Undelete 360 is erected on a fast algorithm that permits the users to undelete files.

Undelete 360 works on various devices such as memory cards, digital cameras, smartphones, USB drives and computer hard drives etc. The plus point of this software it includes a data-wiping tool.