Learning to Trade The Market Like a Pro Trader

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People don’t really understand the concept of the trading business. The majority of the retail traders are taking unnecessary risk and losing a significant portion of their investment. Being a new trader, you should never trade the market with real money. Professional brokers like Saxo offers free demo trading account to the retail traders so that they can learn to trade without losing any real money. Though the success rate is very low, you can still master the art of trading by following some simple basics. In today’s article, we will give you some amazing tips which will help you to trade the market like a pro trader.

Know your risk tolerance level

The first thing that you need to assess is your risk tolerance level. Some retail traders might feel comfortable with 2% risk in each trade but some might risk more than 5% of their account balance. Risk factors greatly vary from person to person in the retail trading industry. However, the experienced traders always suggest the new Singaporean traders not to risk more than 1% of their account balance at the initial stage. Though it might sound a little bit conservative, this is the only way to protect your investment at the initial stage.

Learn about support and resistance level

Those who are new to the retail trading industry often thinks indicator based trading strategy is the only way to earn huge amount of money. If you do the math, you will be surprised to see the majority of the professional traders are trading the key support and resistance level. They hardly rely on the readings of the indicators. Indicators are nothing but helping tools. It allows the traders to filter out false trading signals. Never use more than two indicators as it will make things worse in real life trading.

Trade with the professional broker

The selection of your broker plays a great role in your trading success. The successful traders prefer CFD trading at Saxo since they can easily access to the robust trading platform. Without ensuring a premium trading environment you will never be able to do the advance market analysis. Being a new trader, you have to create a simple trading strategy which will help you to deal with the market dynamics. And never trade with the unregulated broker since you might even lose your entire investment. Stay in touch with the experienced professionals so that you can easily do the proper market analysis.

Analyze the risk factors properly

Trading is all about managing tour risk factors. Never think you can become a Forex millionaire without learning the art of proper money management. As a full-time currency trader, you will always have to lose trades on a regular basis. If you follow proper money management in each trade, it won’t take much time to recover the loss. Making a consistent profit in the retail trading industry is a very challenging task. Once you start to trade the market with high-risk reward ratios, you can easily cover the loss.

Avoid trading the news

Trading the high impact news is very risky. The market becomes extremely volatile and the retail traders fail to predict the price movement of the financial asset. Some of the new traders often execute big trades during such news. At times they might get lucky but considering the long term consequences, you are most likely to lose a huge sum of money.

Control your emotions

Emotions can be very dangerous for retail traders. In order to survive in the trading business, you must trade with discipline. Learn to embrace few losing trades on a regular basis. Never become frustrated with your trading result. Focus on long term goals and trade the market with proper logic. At times, take a break from your trading career to fine tune your trading strategy. Always remember, emotions have no place in the investment industry.

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