Start to trade the real market is a very easy task. You can’t trade different financial instrument just by having access to the online brokerage firm. But having easy access doesn’t mean you can make a decent profit from this market. You have to consider the associated risk in trading. According to a recent study, more than 95% of the retail traders are losing money in Forex. So, how do we learn to trade the market like 5% of the successful traders? This is where educations come into action. Unless you educate yourself properly, it will be impossible to protect your trading capital. Let’s discuss the key things which you need to consider in currency trading profession.
Your financial condition
Never jump into the retail trading business without having enough knowledge of this market. You might have a huge amount of money but still, you should never risk any amount without knowing the basics of this market. On the contrary, those who are having a tough time with their financial need should never think about the trading business. You have to understand the fact, the majority of the retail traders are losing money. Without having proper knowledge of this market, you should never trade the market to make more money. Trading is an art and you must know how the forex market works. And for that, you should use the demo account to develop your trading skills.
Part-time profession
You must consider Forex trading as your part-time profession for the first few years. Never think you can make big profits from this market as a fulltime trader. You need to learn the proper way to find quality trades in your trading platform based on technical and fundamental data. Never rely on emotions or gut feelings in real-life trading. Every step you take in the Forex market will have an impact on your trading results. Keep things organized and try to create a balanced trading strategy so that you can easily make a decent profit from this market. Stop buying an expensive trading system from the professional traders in Hong Kong since it doesn’t work in real life. Every trader is different and has a different view to analyze the market data. You need to develop your trading strategy based on your personality and eventually, you will become a successful trader.
Trade with the high-end broker
Never trade the Forex market with a low-end broker. Find brokers like Saxo where you can do an advanced market analysis and make a decent profit. Some of you might say, the low-end brokers offer more bonus and lucrative opportunities to the retail traders. But do you think this will help? The simple answer is NO. If you trade the market with the low-end broker, you are most likely to face technical problems in real-life trading. For instance, if you intend to trade the high impact news, you will face heavy slippage and freezing platform issues. So, chose your broker very carefully if you want to make a profit from this market.
Trade with proper discipline
Without being a disciplined trader, you can’t earn money in the Forex market. You have to understand the simple fact, trading is more like finding the best trades at the complex market condition. So, if you trade with emotions, it won’t take much time to ruin your trading career. So, how do we become a disciplined trader? This is where you need to gain control over your emotions. Start using a paper-based trading journal and trade the market with logics. Forget about the complex trading method and try to learn the daily time frame trading strategy. Learn the use of Fibonacci retracement tools so that you can easily ride the market trend and make a decent profit from this market. Keep things simple and you will never have a tough time in real-life trading.