Forex trading is a very challenging job. You might be a very good businessman but this doesn’t mean you will become a profitable trader. There are so many things connect to the connection to the concept of trading which makes it hard to define the traits of the successful traders. As a Forex trader, you have to control your emotions and embrace the losing orders with a big smile. Those who become frustrated after having a few loses can never become a profitable trader. You have to train your mind so that you can easily embrace the losing trades without experiencing any mental stress.
Trading is extremely profitable provided that you know the art of trading. Today we will discuss some of the key things which you should never do as a fulltime trader. Let’s dive in.
Making things overly complex
New traders are always trying to create a complex trading strategy. They think this is the only way to find great trades in favor of the market trend. As a result of this, they end up by using too many indicators in their trading charts. Things might work for a few weeks but eventually, the traders will lose their ground. Being a human being, it’s not possible for us to analyze tons of variables in this dynamic market. So, we have to keep things simple or else it will be really hard for us to find the best trades.
Not spending time on education
New traders don’t want to spend any time on trading education. They simply jump into the retail trading business and start executing trades based on emotions. At times they might secure some big winners but in the long run, they are most likely to blow up the trading account. Just have a look at the experienced traders at Singapore. The majority of them are using the Saxo online trading account and executing trades based on logic. They have educated themselves properly and they know the importance of three major forms of market analysis. So, never try to trade the market with real money without education yourself properly.
Ignoring the basic rules of money management
After winning a few trades the rookie traders often become overconfident. They start trading the market with excessive risk and place their trading career at great risk. In order to survive in the Forex trading industry, you must learn about money management. You might have the best trading strategy in the world but there is no assurance you will not face any losing trades. So how do you deal with the losing trades? The answer is really simple. Follow the basic rules of investment and never risk more than 2% of your investment in any single trade. Taking a huge risk in each trade will never increase your profit factor rather it will force you to make a bad decision.
Trading the market with the herd
The rookie traders love to trade with the herd. They think the majority of the traders can’t be wrong in doing the market analysis. But if you learn more about Forex trading business, you will be surprised to know more than 90% of the retail traders are losing money. So, it’s very obvious you will have to lose a huge sum of money by following the herds in the market. Try to learn the art of trading by using the Saxo demo account. Stop copying signals from other traders and focus on cultivating a manual trading strategy. In fact, you can easily make a huge profit by trading the key support and resistance level by using simple price action signals. Try to learn about the important parameters of the Forex market so that you can find great trades. Never trade the market with the negative risk-reward ratio as it will make things really complex. Think twice before you execute the trade in this market.