The future is now at your hand. If you want to lead a luxurious life than there is no one who can stop you. In the past it used to take huge amount of money to participate in the Forex trading profession but things have dramatically changed over the past decades. Peoples now have access to high class broker like Saxo where they can trade the live assets from home. A smart device with an active internet connection is enough to open the door of online trading business. Despite this amazing features, the successful traders in the Forex market is very less. To be exact only 5-10% of the traders are able to make profit from this market. Those who are leading their life based on this profession are known as the artist of the trading industry. They know the proper way to deal with the complex market movement.t
The expert traders knows the risk factors of the market very well. They never execute trade with unnecessary risk even though they have a very big balance. You might be thinking risking 1% on a low quality trade setup is worth taking the risk but the expert will never think in such way. They always look for opportunity to increase the winning edge. They never trade this market with 1:1 risk reward ratio. On the contrary, the new traders even execute a trade with the negative risk-reward ratio. Due to this fact majority of the traders are losing money even after winning most of the time.
Role of discipline
You have to trade this market with strict discipline or else it won’t take much time to lose your investment. The new traders are always taking the risk without knowing the risk factors and at times they even break their own rules. What’s the point of using a trading strategy when you can’t follow the rules? You have to very cautious while executing trades in your online trading account. Even if you face more than 10 losing trades in a row, you should never become frustrated. You need to take some break from your trading so that you can dedicate some time to find your faults. But this doesn’t mean losing trades signifies the weakness in your strategy. If you can develop a simple strategy with 60% win rate you are can easily change your life.
The news is the most important yet ignored elements in the Forex market. Ask a new trader whether they know the proper way to do the fundamental analysis. Sadly they will say NO. Most of them are biased with the technical factors of the market which is just a part of this trading profession. You can’t make perfect decisions once you know the proper way to assess the fundamental factors of the market. The novice traders often follow trend trading strategy blindly. But once the long-term market trend gets changed they blame the market. But nothing is absolute in this world. Things will change from time to time to maintain the balance of nature. Similarly, in the Forex trading industry, the market trend gets changed due to high impact news. So be sure you know the perfect method to analyze the news data to execute profitable trades.
Role of risk management
Money management is often known as the holy grail of Forex market. The new traders don’t understand the proper way to manage their trading funds. They risk too much in each trade and become frustrated after losing a few trades. But imagine you are risking 1% per trade. Even after losing 5 trades in a row you will be down by 5%.On the contrary, if you risk 5% in each trade after 5 losing trades you will be down 25% of your account balance. So try to realize the importance of risk management and trade with very low risk.