When it comes to trading on Summits Exchange
or using its social trading features, we encourage
responsible behaviour among all our users. Our “responsible trading policy” calls on traders to protect
themselves from emotional decision making that can result in unnecessary losses.
Novice traders, in particular, tend to rely more on “gut feelings,” because they don’t necessarily have
a lot of experience in financial trading to make rational and informed choices.
To help traders avoid making rash online trading decisions, Summits Exchange
, in accordance with local
financial regulators, recommends the following:
Maximum leverage according to the following list:
30:1 for major currency pairs;
20:1 for non-major currency pairs, gold and major indices;
10:1 for commodities other than gold and non-major equity indices;
5:1 for individual equities and other reference values;
2:1 for cryptocurrencies;
Place no more than 20% of your equity on one trade
The key factors of smart investing are low leverage and portfolio diversity, a fact attested to by the
portfolios of Summits Exchange
’s top traders.
Here are some tips for becoming a more responsible trader:
Only invest in what you know: Don’t follow random tips or gut feelings. If you want to invest in a
certain asset, familiarise yourself with its history and tendencies.
Look at your Risk Score: Your unique Risk Score is a great way to see if you are a responsible trader.
Keeping a Risk Score of 3 or lower on Summits Exchange
is recommended.
Adjust your portfolio: Diversify your portfolio with assets across many classes. If you don’t want to
monitor your portfolio frequently, opt for lower-involvement instruments, such as CopyPortfolios™ or our
CopyTrader™ system.
Copy other responsible traders: When you copy another trader, look at their Risk Score, history, and
portfolio diversity.
Human Psychology & Emotional Trading
Traders of all levels can rely too heavily on their emotions while trading. This is a mistake as fear,
greed and excitement can play a hand in making bad decisions. Always have a trading plan, and stick to it
no matter what happens. When creating your trading plan, incorporate the tips from the section above,
paying specific attention to:
Maximum leverage
Portfolio diversity
Risk scores and profiles of other traders
