Becoming a successful trader in the Forex market is not easy. Those who are trading the Forex market for a long period know the importance of proper discipline. You can’t jump into the retail trading business and expect to make millions of dollars. Think about the professional traders in Hong Kong. All of them have worked hard to develop their trading skills. Without knowing the ins and out of this profession, you can expect to make real progress. Let’s learn five golden rules which will help you to become a successful trader.
Rule 1, never take the high risk
You can’t earn more money by taking a huge risk in each trade. You have to follow a conservative trading technique to become a successful trader. Those who are relatively new to the trading profession are always losing money since they don’t have any knowledge of risk management. Leading your dream life based on currency trading business is a very challenging task. You have to train your mind to embrace the losing trades. Most importantly, you can’t risk more than 2% of your account balance in any single trade.
Rule 2, trade with the trend
Trading with the market trend is one of the easiest ways to make a profit online. The new traders are always losing money since they trade against the major trend. When you do the market analysis, make sure you are using the daily or weekly time frame. Never trade the market in 5, 30 or 60-minute time frame since it will give you false readings of the market. This doesn’t mean you can’t trade the market in the lower time frame. Lower time frame trading is extremely risky and requires pin perfect execution of your trading plan. Without having the right skills and enough experience, you can’t become a scalper.
Rule 3, trade with a high-end broker
Do you know the importance of reputed broker in the Forex market? If not, visit https://www.home.saxo/en-hk to learn more about the professional brokerage firm. If you trade the market with a high-end broker, you can easily use their robust trading platform and make a quick decision. At times you might think the low-end brokers are the best since they offer extreme leverage. Leverage is more like a double edge sword. It holds the potential to magnify your risk factors. Trade with a low leverage trading account so that you can make a profit in the long run without having much experience.
Rule 4, use price action confirmation signal
The price action trading system is one of the most efficient ways to make money online. Being a new trader you might not understand the difference between price action and indicator based trading system. But if you demo trade the market for a few months, it won’t take much time to realize how well you can trade using the Japanese candlestick pattern. Take advantage of the demo account and learn price action trading. Once you learn the art of price action trading, you can easily make a huge profit from this market. But this doesn’t mean you take a huge risk in each trade to increase your profit factors.
Rule 5, be prepared to lose trades
Dealing with losing trades is very hard. The majority of rookie traders are losing money since they don’t have any proper knowledge on risk management policy. Learn to trade the market with 1% so that you don’t have to take stress after losing a few trades. Once you learn the art of losing you will never have a problem in dealing with the losing trades. Losing or winning doesn’t matter as long as you trade the market with proper discipline. Never execute any trade with high risk to recover the loss. Learn to play it safe so that you can easily make a profit at any market condition.