Learning to trade the market is not that hard. But
when it comes to real life trading the new traders start breaking the rules and
blow up the trading account. In order to make a living out of trading, you must
learn to trade the market like an expert trader. The pro traders in Singapore
never trade the market with high risk. They always follow a conservative
trading strategy to make a profit from this market. Managing your trades is one
of the most difficult tasks in the retail trading industry. But if you follow
all the basic guidelines of the trading industry, you will never have a tough
time trading the real market. Let’s learn the key steps which can make you a
2% rule of money
The first thing you need to do is to follow the 2% rule of money management. Even after having access to high
leverage trading account, the professional traders never risk more than 2% of
their account balance. The outcome of any trade is completely unpredictable.
Unless you prepare yourself to deal with the losing trades, you are most likely
to blow up the trading account. But does this mean you will always follow the
2% rule of money management? Over a period of time, you will slowly gain
experience about this market and this will help you to trade with high risk.
Regardless of your skills and quality of the trade setups, you should never
risk more than 3% of your account balance.
You need to trade with the market trend to save your
investment. Those who trade the market against the long term trend always lose
a huge sum of money. Try to learn the proper use of your trading platform so that you can find great trades at any market condition.
Use the simple trend line tools because they will help you to find the key
support and resistance level. The smart traders never execute the trade by
using an aggressive trading strategy. They use the simple price action
confirmation signal since it increases their win rate to a great extent. Some
of you might think learning the details of price action trading strategy is
really hard. But in reality, you can easily master these skills by using the
demo account offered by Saxo.
Keep on learning
The pro traders never stop learning. Unlike them, the
rookie traders forget the concept of learning and start to trade the market
with aggression. Within a short period of time, they blow up the trading
account. If you learn new things about this market, you can easily keep pace
with the changes in the market. Forex market is one of the most volatile
markets in the world. Unless you keep yourself tuned with the latest economic factors, you are bound to lose money. Try to
think like the professional traders who have years of experience in this field.
Develop a strong habit of reading so that you can become a better trader.
Stop over trading
Overtrading is one of the major cause to lose money in
Forex. Being a new trader, you need to stop overtrading the market. Due to
overtrading, retail traders never understand how this market works. If you
start to trade the market with proper discipline, wait a short period of time
and you can easily make a profit and change your life. You need to train your
mind so that you can wait patiently for the high-quality trade steps. Forget
about quick gains in the trading business. Try to develop a valid trading
strategy which will help you to find quality trades. If necessary, seek help
from the trained professionals since it will help you to understand the market
much better. Invest some money in paid education to learn the details of this