Five Golden Rules to Become a Great Trader
Forex trading has become a dream job for many people because they want to be independent and be their own bosses. Besides, this platform remains open 24/7, and anybody can enter a trade whenever they want. This market is regarded as one of the largest trading markets because every day random dealings take place. This online business platform offers investors a variety of benefits such as greater leverage, easier access, quick profits, and so on. Traders can also pass their days comfortably as nothing happens. Anyone can kick off his career in the foreign currency exchange market by investing a small amount of money.
Start your Forex trading career?
Before you proceed, we should inform you that this FX market is not so easy to realize and to make a profit. You can indeed earn a small number of profits per trade, but without analysis and realizing the real situation, you can be at a greater risk. Many beginners have lost potential deals because of not having sufficient knowledge to deal with the market. Remember that making profits from this market is quite difficult.
Step – 1: Be attentive to the time frames
This is the first step to be a winner in this market. An investor must be attentive to trading and the news events related to this market. Many businessmen don’t want to enter a long-term timeframe because a long-term timeframe makes it harder for them to make a quick profit. Instead, they rush to the short-term timeframes and think that they can enter and close the trade quickly and earn quick profits. Professionals always encourage beginners to trade in long-term timeframe because of the greater risks at a shorter timeframe. To become an expert trader, it is a better choice to choose long-term timeframe. Use the link https://www.home.saxo/en-sg/products/mutual-funds and explore the educational resources. Soon, you will realize, why the mutual fund traders always prefer higher time frame at trading.
Step – 2: Enter trade with the edge
It is a useful hack among successful traders. They enter the trade when there is an edge, which indicates that there is an opportunity for upward or downward movement of the market. There are a few technical factors that may help an investor to grab a potential edge. You can look for the resistance and support level of the market to reveal the possible upcoming trends.
Step – 3: Always assess the risk to reward ratio before entering a trade
This step is a must, and every investor should assess the risk to reward ratio before entering any trades. The risk to reward ratio indicates the probability of a successful trade. If the ratio is 1:2, it will indicate that the investor may lose $100 if the trend moves against his luck, and he may earn $200 if the trend moves in his favor. This is great money management in FX trading. This risk management technique can help you maximize your winning rate.
Step – 4: Make your technical analysis simple
Technical analysis can play a vital role in determining your Forex trading success. Technical analyst closely observes the resistance and support level, possible trends, slope, and the market condition to predict the upcoming market condition. There are hundreds of technical tools and indicators that can help an investor understand the market, but professionals recommend making the analysis simple and hassle-free. Using too many indicators can make the platform too challenging for a businessman to understand.
Step – 5: Place your stop-loss order
This is the final step that you should never forget. A stop-loss order will automatically close your trade if the market starts moving against your luck. The investors have to set a predetermined value in this case, and if the trend begins falling and exceeds the predetermined value, the trade will be closed.
Conclusion
These are the five steps to help increase your winning rate in Forex trading. You can follow these guides to improve your knowledge and skills to deal with any situation. Keep practicing with these ideas in the demo account to develop yourself further as a trader.
