Everyone wants to learn currency trading profession. Due to the recent advancement of technology people can easily access the online trading world just from home. In the past, only the large banks and institutions were able to participate in this business. But high-end brokerage firm like ETX Capital is now offering leverage trading accounts to the retail traders which enables the clients to trade with a very small investment. If you can truly master the art of currency trading profession you can easily make tons of money. There are some key rules which you need to follow to become a successful trader. This article is going to give you useful information which will help you to master the art of currency trading profession within a very short period of time.
Stop trading the lower time frame
First of all, you should stop trading the lower time frame. Those who trade the lower time frame are always exposed to huge risk. Just have a look at the professional traders. Majority of the successful traders are using higher time frame to trade the market. They never trade the lower time frame since they have a deal with lots of false trading signals. Being a new investor you might feel boring with the higher time frame trading strategy. But without having strong patience it will be really hard to make money in the Forex market. Being a new investor you should always follow the conservative way of trading since it will save you from losing a significant amount of investment.
Learn fundamental analysis
Fundamental analysis is one of the key skills that most novice traders don’t have. The new traders always trade the market with technical analysis. Technical data will give you a partial picture of the market. This will never help you to find the best trades. So how do you use the fundamental data to maximize your profit factor? The idea is very simple. You have to use the Forex trading demo account and develop a simple trading system. Try to understand the impact of the news on different currency pairs.
Use price action signal
Those who are completely new to the retail industry never trade the market with price action confirmation signal. They are biased with the indicators reading but they forget indicators are nothing but helping tools. If you truly believe trading is the right profession for you, you must focus on the key support and resistance level. Instead of using the pending orders, use the price action confirmation signal to improve your winning edge.
Never risk more than 2%
The new traders are often known as risk takers. They never trade the market with managed risk. To be precise they always look for an opportunity to make a huge profit within a very short period of time. But this is not the way to deal with the currency trading market. No matter how hard you try, you will always have to lose trade. Make sure you are not risking more than 2% of your account capital on any single trade since it will significantly increase your risk factors.
Go of paid course
The professional trading course is one of the easiest ways to master currency trading profession. The expert traders will always give you the proper guideline. But having a clear guideline is not enough to secure your profit. You have to train your mind to embrace the losing trades. The experienced traders always consider the probability factors of this market. They never trade this market with emotions.
By now you know the most valuable piece of advice to trade the market. Try to follow these simple rules and you see significant improvement in your career. Never follow trade this market with other people trading strategy rather use the demo accounts to develop your trading strategy.