The new traders always ask how to make millions of dollars. They consider theForex trading profession as the most lucrative sector in the world. Without even realizing the key factors of the investment business, they start to trade the real market and eventually blow up the trading account. As a new trader, you need to understand the associated risk factors of trading business. Without having precise knowledge of this industry, you can’t expect to change your life. The pro-Singaporean traders always suggest that novice traders trade the market with managed risk. Unless you trade the market with a proper risk management policy in places, it won’t take much time to lose millions of dollars.
Can you really become a successful trader?
The straightforward answer is yes. If you prepare yourself properly, you can easily make a profit from this market. Leading your dream life based on currency trading profession is really easy. Just focus on the key factors of the trading business and trade with a reputed broker like Saxo. However, being a new trader you need to follow the tips below to protect your trading capital.
2% rule of money management
No matter how well you understand this market, you should never risk more than 2% of your account balance in any single trade. As a fulltime trader, you need to learn the proper way to embrace the losing trades. Never think you will be winning all the trades. Even the most experienced trader fails to win all the trades. Losing is just a part of this profession. Unless you learn to embrace the losing orders, you will have a tough time in the trading business.
Trade with an elite broker
You need to find the best Forex trading account to ensure quality trading environment. Never think you can make living out of trading by trading the market with the low-end broker. It’s true that low-end brokers will offer you a low-cost trading environment but you will have to face many technical difficulties. For instance, during high impact news, you will have to deal with a very widespread. At times you might have to face the freezing platform issue which might result in heavy loss.
Identify your mistakes
The rookie traders never trade the market with confidence. Those who trade with confidence don’t even know the risk factors of this business. So, how do we deal with such complex problems? You need to identify your trading mistakes by analyzing your past trading data. In a sense, losing trades give you a unique opportunity to fine-tune your trading strategy. But sadly, the new traders never learn from their mistakes and eventually, they lose a huge sum of money.
Trading against the trend
A trend trading strategy is one of the most effective ways to make a consistent profit. The professional traders always analyze the daily time frame and use simple trend line tools to find potential support and resistance level. Being a new trader you might have some difficulties with trend trading strategy but there is an easy solution to this problem. Open a demo account with an elite class broker and try to understand the nature of this make-work hard and create a trend trading strategy so that you can easily make a profit at any market.
Trading the market with emotions
Do you really want to become a successful trader? If so, you must learn to trade the market with proper logic. Forget about emotions and aggressions. The aggressive traders will never make a profit in the long run. You need to create a simple and balanced trading strategy which will help to find great trades. Train your mind so that you don’t get frustrated with the losing trades. Just focus on high-risk reward trade setups and you can easily develop your trading career.