- October 28, 2019 at 5:08 pm #9278
Everyone thinks trading is the best job in the world. After joining the investment industry, they realize the complexities associated with the currency trading business. Without having a precise knowledge of the Forex market, it’s really hard to make a consistent profit. You might be new to the trading business but this doesn’t mean you will trade with emotions. Emotions should be locked inside a box and you have to look for potential trade setup in a higher time. Though the success rate is very low, still you can manage to make a profit by following some basic principles. Let’s discuss some of the key things which you need to learn in trading.
Technical analysis is the study of the raw price movement to find a potential trade setup. If you use a professional trading platform like SaxoTraderPro, you can analyze the price movement in different formats and find potential trade setups. When you do the technical analysis, make sure you are relying on the daily and weekly time frame. If you focus on the short term trading method, it will be really hard to find the best trades. Open a demo account with Saxo and try to develop your technical analysis skills.
Learn fundamental analysis
Fundamental analysis is the most important aspect of trading. The pro traders in Hong Kong always rely on fundamental data to assess the trend strength. Those who are thinking the fundamental analysis is the most complex part of trading is making a big mistake. Just have a look at the experienced traders and you will get confidence to learn fundamental analysis. Focus on the major news at the initial stage and try to improve your trading edge by learning from your mistakes. Once you understand how this fundamental data affect the price movement, you can execute quality trades in the Forex trading account. So, act accordingly to develop your trading skills.
Assess the sentiment of the market
Assessing the market sentiment is the most difficult task in the trading profession. You can’t master sentiment analysis skills by taking help from the experienced traders in Hong Kong. Trade the market with discipline and over a period, you will understand how to assess the market sentiment. At times you might get confused but this is very normal. Stick to the basic rules and trade the market with low-risk exposure. Once you start to understand the sentiment of the market, blend the three major forms of market analysis to become successful at trading. Learn to improvise to enhance your profit factor.
Know your risk tolerance level
Every trader is different in the Forex market. So, you can’t protect your trading capital by following the basic risk management policy. At the initial stage, try to know your risk exposure level so that you can make a decent profit without taking high risk. Those who are thinking to trade with more than 3% risk should know the fact, dealing with the losing trades is a very complex task. At the initial stage, try to follow the 1% risk management policy since it will help you a lot in the long run. Once you become confident in your trading performance, increase the risk exposure so that you can make a decent profit by trading with the trend.
Stay tuned with the market news
You must stay tuned with the global market news or else it will be impossible to make a consistent profit. Being a new trader, it’s very hard to follow all the basic rules in trading. Start using a trading journal and keep things organized. Join the professional trading network site so that you can stay updated with the global news. If you ignore the news factors, you can’t scale the trade during the extreme market conditions. Things might seem complicated but everything will make sense when you follow an organized trading routine. So, stay in tune with global economic news and trade the market with confidence.
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