• Loading stock data...

How the expert traders make a profit

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 successful trader.

2% rule of money management

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.

Following the market trend

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 new things

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 the market

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 market.