Trading is one of the most elite class profession in today’s world. If you can master the art of trading, you will never have to look back again. But mastering the art of trading is not so easy. According to statistics, almost 95% of the traders are losing money. So why the number losing traders are so high in the Forex market? The simple answer is lack of trading knowledge. The new retail traders start their trading career without learning the basic details about this market. They simply trade this market based on their gut feeling and loses money. You need to understand that every single thing in Forex market can be explained with trading terminology. So being a new trader, if you don’t educate yourself, you are not going to make any money. You have to overcome many obstacles or else you will be in the line of losing traders. This article is dedicated to the passionate trader who wants to shine bring in the trading industry.
Learn to trade in a demo market
Demo trading is one of the best ways to master the art of trading. If you live in the United Kingdom, you can seek help from the pro traders to learn more about this market. Everyone will tell you to demo trade the market for the six months. It’s true that in the demo account you will not lose any real money but you can easily understand how volatile this market can be. At times you might get bored with the demo trading account since you will not make any real money. But this where things become a little bit complicated. You have to control your emotion and make a consistent profit for the first six months. Without developing a solid track record in demo account you will never become a profitable trader in real life.
Develop strong confidence
Confidence is always the key to become a profitable trader. In the Forex market, you can never place high-quality trades without having strong confidence. Now you might say how to develop confidence in the trading industry? The answer is simple. You have to be very knowledgeable and trade with strict discipline. Having strong confidence is very crucial to your trading success. The retail traders often say that they have learned every bit of details of this market but still losing money. But do you really think that they have precise knowledge about this industry? Learning has no ending in the field of investment. You have to read articles and news on regular basis or else it will be hard for you to tune with the latest changes in the market. Always be prepare to embrace the losing trades since it is one the easiest way to gain strong confidence
Learn the art of risk management
Money management is the key ingredient which will save your trading capital in the long run. The new traders always trade with a big lot size to recover their trading loss. But losing trades are nothing but a part of your trading career. As a long as you follow proper money management, you can easily afford to have a series of losing trades. When you place a trade in this market it’s your duty to ensure that you are not risking more than 2% of your trading capital. However, some traders often risk 3-5% of their investment which is absolutely fine but being a new trader you should stick to the 2% rule of risk management. Once you have masters the art of risk management, you can easily trade with big lot size with managed risk. Trading is an art and you need to understand how to minimize your risk exposure while maximizing your profit factor. Always follow the conservative way of trading and never take any aggressive entry in the volatile market.