Everyone wants to earn money by trading the live assets. But in reality, very few people can lead their life as a full-time trader. The majority of traders lose money since they don’t have enough experience and proper training about this retail trading industry. Some of you might be thinking trading is the job for millionaires but in reality, many people in the United Kingdom have changed their life based on this profession. A high-class broker like ETX Capital is now offering quality service to the retail traders and the ease of access of high leverage trading account has made trading extremely easier. Today, we will learn how we can trade like the senior traders and secure decent profit at the end of the month.
Table of Contents
Learn the fundamentals
Having a clear knowledge of the basic stuff of the retail trading industry is crucial. Those who are relatively new to this profession might not have enough patience to learn more about this market but if you look at the experienced traders, you will understand patience is the key to become a successful trader. Learn about the structure of the market and know the active participants. You have to understand why the price of a certain asset is changing its level and how a high impact news can change the overall course of a trend. Once you have got the basic idea, you are ready to demo trade the market.
Some of you might say, why demo accounts? Demo accounts are the only way by which you can trade the market without risking any real money. You might have a huge amount of money but this doesn’t mean you will risking your investment without having a strong confidence. And the only way you can develop confidence is by practicing hard in the demo accounts.
Learn to trade the key support and resistance level
You don’t need a complex trading structure to trade the key support and resistance level. The new traders don’t even know how to identify the key support and resistance level. They always stick to the lower time frame data and loses a huge amount of money in spread trading. You need to use the daily or weekly time frame to filter out the best trades from this market. In higher time frame trading you can easily filter out the false trading signals and most importantly it will help you to trade along with the trend. The daily or weekly time frame will always give you an overall picture of the market which will significantly reduce the margin of error in real-time trading.
Learn to accept the loss
Do you know why most traders blow their account? The only reason is they don’t know how to accept the loss. Trading is all about dealing with the probability factors. You can’t be certain about winning or losing trades. Even after doing all the research and hard work, you will always have to face losing trades. So if you don’t train your mind to embrace this losing trades you will always become frustrated and trade with big lot recover the loss. This is one of the key reasons why trading is extremely hard for novice traders. You should not trade to earn money rather you should trade to protect your investment. If you can stay in this game you can easily ensure a decent profit at the end of the month.
Assess your performance
You need to regularly asses your performance to become a successful trader. You might have winning trades for three consecutive months but this doesn’t mean you have the Holy Grail in the Forex market. So what should you do? Make sure you continuously assess your performance and bring positive changes to your strategy to keep pace with the changes in this market.