Trade risk-free?

Risk and trading go hand in hand; the outcome is not known and there is always a chance that you will lose your stake. However, it’s possible to trade risk-free because with some brokers you can try out trading completely free. If you lose the money they give you, it’s not too bad because you don’t lose any of your own money.

Trade 100% risk-free?

Trading 100% risk-free is never possible. However, it is possible to trade using a demo or a bonus. Brokers make free bonuses available to get new clients. This makes sense because more clients means more profit for them. With every transaction that is executed, the broker makes a small amount. The more people they get to start trading on their platform, the more money they will make in the long term.

Start trading with a registration bonus at:

  • Markets.com: trading risk-free with an amount of £25. Sign up >>
  • Plus500: trading with a free demo of £20.000. Sign up >> 

Lower risk

trade without riskIf you were to gamble on the exchange, you would have a 50% chance of correctly guessing the direction a price will move in. The price can go in only one of two directions – up or down. By taking into account several factors, you can increase your chances of making the right decision. And if you make money more than 50% of the time, you turn a profit!

You can predict the price to a certain degree by taking into account the news and price development. With stocks, a profit warning can be a strong indicator of a decreasing price. Always follow the price development within the chart and look at how the price responds to certain levels.

By making well-educated decisions, you can make a profit more than 50% of the time. That lowers your risk tremendously! By integrating another smart trick, you can lower your risks even further.

Risk management

It’s possible to make a profit even when you aren’t correct 50% of the time. You can do this by maintaining a proper ratio between reward and risk.

You can maintain this ratio by using a stop loss and letting it move organically with the market, You can adjust your stop loss daily to the lowest value of that day when the price has moved in the predicted direction. By using this strategy, you ensure that a profitable trade makes you more money than a losing trade costs. Eventually the risk of trading is reduced quite a bit, but trading completely risk-free unfortunately isn’t possible.

Useful links: start trading directly!