Trading is one of the most elite class profession in today’s world. Many people in the United Kingdom have changed their life just by trading the live asset. But making a consistent profit based on currency trading business is not so easy. If you analyze the success rate, you will be surprised to know only 5% of the retail traders are successful. So, why the majority of the retail traders are losing money in Forex? The retail traders jump into the online trading industry without knowing the details of this market. They simply execute the trade with emotions and loses a big portion of their investment. To become a successful trader, you must learn to deal with the complex market environment.
Understand the nature of the market
Understanding the nature of the Forex market is easy. You can use the Saxo demo trading account and demo trade the market for the first few months. Never trade the market with real money unless you can make a consistent profit. Demo trading account is often considered as blessings for the retail traders. You can easily craft a balanced trading strategy without risk any real money. As a rookie trader, you have to focus on simple logic to find the best trades. Stop thinking about a complex trading strategy since it never works in the long run.
Learn to trade the higher time frame
Those who are successful in the options trading industry always trade the market in a higher time frame. Though lower time frame trading will give you different trading opportunities, in reality, this will never help you to become a better trader. Lower time frame trading is nothing but taking unnecessary risk. To protect your trading capital you must learn to trade the market in favor of the long term trend. Forget about the low-quality trade setups and focus on the higher time frame signals. Take your time and try to trade the market with an extreme level of precision.
Dealing with the high impact news
On the event of high impact news, the Forex market becomes extremely volatile. Those who are well aware of the fundamental factors of the market, never execute any trade before the high impact news release. It’s better to stay in the sideline rather than losing money on low-quality trades. Some of you might think learning the art of fundamental analysis is hard but if you do the math, it won’t take much time. Learn about the major news release so that you can scale your trade before high impact news. Always remember, fundamental factors are often considered to be the most powerful price driving catalyst. So, if you intend to make some real progress, make sure you trade the market after learning fundamental analysis.
Managing your running trades
Learning to trade the market with an extreme level of precision is easy. The new traders always try to make things complex with a hope that it will result in huge profit. But always remember, success lies in simplicity. Use simple logic to find high-quality trades in favor of the market trend. Forget about the low-quality trade setups and focus on long term goals. Try to ride the market trend by using trailing stop-loss features. Being a fulltime trader, chose a broker like Saxo since they always offer a premium trading environment to the retail traders.
Be prepare to lose trades
Losing is nothing but a part of this profession. Unless you learn the proper way to lose trades regularly, you are most likely to blow up the trading account. You might lose 10 trades in a row, this doesn’t mean you have a bad trading system. Stick to the basic rules of investment and execute the trade with an extreme level of caution. Last but not least never trade the market unless you are certain about the trade setup.