Learning the art of the Forex trading profession is a very challenging task. Most of the retail traders fail to make money because they don’t know the proper way to deal with the complex market movements. In fact, the rookie traders in Singapore execute trades with emotions and gut feelings. They follow an aggressive trading strategy to make a decent profit without even having enough invested.
But trading is just a business. You need to have a proper strategy to deal with the complex nature of the Forex market. You might have a huge amount of money but this doesn’t mean you will be able to make a huge profit in the market. You need to learn the proper way to analyze the important variables of the market. Let’s learn some of the key steps you need to follow to become a successful trader.
Step 1, learn things properly
Without knowing the details of the market, never expect to become a successful trader. First of all, try to learn the technical parameters of this market. Understanding the technical details of this market is fairly easy but things become a little bit complex when it comes to fundamental analysis.
In fact, many rookie traders in Singapore often ignore the importance of fundamental analysis. They execute trades based on technical analysis and lose money. You need to learn the three major forms of market analysis to become a profitable trader.
Step 2, Use the demo account
Learning to trade the market like a pro trader is a very challenging task. However, if you use the premium Forex trading broker, you can easily use the demo account and learning trading without risking any real money. The pro traders always suggest that new traders use Saxo’s demo account.
Try to create a balanced trading strategy by trading the market in the virtual environment. Things might seem really hard at the initial stage but after follow the basic details you can easily make a profit. Try to create a simple trading strategy so that you can deal with the extreme market condition.
Step 3, start trading the real market
Things become really messy when retail traders start trading the real market. At the initial stage, they follow all the basic guidelines but after a few months, they start trading with emotions. Emotions are often considered to be the most dangerous enemy for retail traders. You can’t become a successful trader unless you learn to trade the market with managed risk.
To do so, you must learn to control your emotions. You might have to lose a few trades in a row but this doesn’t mean you should start taking excessive risk in each trade. Follow a conservative trading technique and you can easily survive in the trading industry.
Step 4, Learn from your mistakes
Being a new trader, you will make many mistakes. Never lose confidence after losing a few trades. Losing or winning doesn’t really matter as long as you trade the market with proper logic. You need to find a high-risk reward trade setups so that you can easily cover the loss. Always maintain a trading journal so that you can easily fine tune your trading strategy by learning from your mistakes. Mistakes are always appreciated as long as you learn new things.
Step 5, Have financial backup
Being a fulltime trader, you must have a financial backup for at least six months. You might know everything about the Forex market, but still, you might have to face a few losing months. So, without having a financial backup you are most likely to take unnecessary risk to recover the loss.
But having a financial backup for six months will make things easier. Try to trade the market in a stress-free environment so that you can make a better decision. Always keep your confidence level high since it will help you to overcome obstacles.