Making your life beautiful in a world of economic crisis is not so easy. Most of the people in this world don’t get what they want. When it comes to financial freedom, it’s really hard to ensure a stable source of income. To eliminate the problem of the financial crisis people are always looking for new sources of income. This is where the term Forex trading comes into action. But making a consistent profit in the Forex market is not so easy. This might be the toughest profession for the person who doesn’t have any control over their emotions. In today’s article, we will cover some important factors which will act as a guideline for novice traders.
Focus on the market basics
When you talk about the market basics, most of the retail traders think about technical analysis. But technical analysis is not going to act as the basic foundation for your trading business. Fundamental analysis should be considered as your basics foundation even though it is ignored by most of the losers. Once you start to understand the impact of major news, you will know a lot about the major price driving catalyst. Eventually, you will be able to forecast the price of a certain asset with a high level of accuracy. Once you are well aware of the fundamental factors of this market, start learning about the technical details. Based on these two basic formats, you have to develop the basic foundation of your trading career.
Trading is nothing but a business
You must consider trading as your business. Many traders in Hong Kong have already changed their life by placing perfect trades in their Forex trading account. But to find the perfect signals, you need to have a strategy just like a professional businessman. But do you think the professional businessman always make money? In any business, there will be ups and downs. So, when it comes to the currency trading profession, get ready to embrace the losing trades. If you look for big profit all the time, trading might not be the right profession. You have to set realistic goals and place the trade with managed risk. Never try to make huge profits without doing the proper market research. If you do so, you increase the chance of blowing up the trading account.
Stay away from the volatile market
The novice traders should never trade the market volatile market. Trading the volatile market is very hard since the market always generates random spikes. And those who trade with tight stops often lose a big portion of their investment. So, if you intend to master the art of trading, make sure you deal with the market volatility with an extreme level of care. Focus on the major news and stay in the sideline. Being a new trader, you might think news trading is the only way to catch the biggest market movement. But you are wrong. Learn about the chart pattern trading strategy and you will be able to make a profit. Some of you might think the learning chart pattern trading technique is very hard. To make things easier, you can use the demo account from the elite broker Saxo and learn the proper method without risking any real money.
Try to trade the major trend line
Instead of using complicated trading methods, try to learn the trend trading strategy. If you make a profit by using EAs or SMA, then most probably you are using wide stops. The use of wide stops usually results in a high-risk strategy. To solve this issue, you can act on the trading system only. Learn to trade the major trend line by using price action signals. Once you feel confident with the trend trading strategy, start riding the trend by using the smart trailing stop loss features available in your trading platform.