Learning something new from scratch is a very challenging task. You might have extensive experience in traditional business but making consistent profit in the Forex market is not so easy. More than 95% of the retail traders are losing money since they don’t know the proper way to execute the trade. To make your life better, you must trade the market with managed risk. Never think you can change your life without doing the hard work. Let’s discuss five essential elements which you must consider in order to become a successful trader.
Quality of the broker
Very few traders understand the importance of reputed broker. Most of the time, the novice traders in Hong Kong open a trading account with the unregulated broker and blow up the trading account. You might have the best trading system in the world, but if you trade the market with an unregulated broker, you can’t make a profit in this profession.to make your life better, you must choose a broker like Saxo. Though Saxo is strict with the initial deposit requirement it’s for the betterment of the retail traders.
Learn price action trading
Instead of using a complicated trading strategy, you need to focus on a simple trading method. So, which trading strategy should we use? Well, there is no exact answer to this question. However, the experienced traders in the Forex market prefer to use price action trading system. By using the different forms of the Japanese candlestick pattern you can easily make a huge profit. But make sure you are trading the market in the higher time frame. Never try to scalp since it increases the risk factors to a great extent.
Maintain a trading journal
Without maintaining a trading journal it’s really hard to find the mistakes in your trading system. Most of the time, the new traders don’t understand why they should follow a trading journal. By following the trading journal you can easily find the mistakes in your trading system. During the spare time, analyze your past trade data so that you can find the weakness in your trading system. Once you feel confident with your trading skills, focus on long term goals.
Trade with the trend
You must learn to trade with the major trend. Those who trade the market against the major trend are always losing money. Making consistent profit in the Forex market is all about finding the best possible trade setups in favor of the trend. And to do so, you must learn technical and fundamental analysis. Some of you might ignore the fundamental analysis section but this is the only way to make a profit from this market. Never try to trade the market without finding the long term trend. This will increase the risk factors to a great extent and forces you to lose money.
Be a disciplined trader
Regardless of your trading knowledge, you are most likely to lose money by breaking the rules. You should always follow your trading rules since it is the only way to make a profit. You might trade the market with proper discipline for 11 months but if you break the rules in the 12th month, you are bound to blow up the trading account. Some of the new traders in Hong Kong often follow complicated rules. But this is not a professional way of trading. Rules should be very easy and you should understand them very well. Never make things complicated in the trading profession since it always results in a big loss. You may have a huge amount of money but this doesn’t mean you will break the rules. Focus on the market trend and try to find high-quality trade setups. Instead of analyzing the data in the lower time frame, be a position trader. Keep learning new things so that you can make the best decision in trading.