Familiarizing yourself with the retail currency trading business is not an easy task. People think they can change their life just by opening a trading account. But do you think that all the traders in Singapore are making a profit? If you perform a survey on retail traders, you will be surprised to know more than 90% of the investors are struggling with their trading career. So, how can we learn to trade and become a pro trader? Though it’s a very long term process, you can easily cut down the period by following the basic rules mentioned in this article Lets learn about the key steps that you must take to master the art of trading without losing too much money.
Use of the demo account
The demo accounts give you the perfect learning ground. You should never invest any real money in the first three months or else you will blow up the trading account. Most of the time, the traders become frustrated after losing a few trades and they start placing random trades to recover the loss. As a result of this, they blow up the trading account. But if you start with the demo account, there is a reason to lose your real money. Try to develop a simple strategy so that you can trade the key support and resistance level.
During your strategy development stage, you may have to overcome many obstacles. But this is very normal and every trader had to face such a stage. Keep on reading articles and trading blogs so that you can learn a lot of new things about this market. Once you get good at trading, start dealing the real money.
Trading with real money
Things become complex when people start trading with real money. The first thing that you should focus on is the quality of the brokerage firm. The skilled traders always suggest the naïve traders to start trading with the Saxo broker since they care about their client. Moreover, they are heavily regulated so there is no way you are going to lose your money. Trading should be done in a very precise way. And for that, you need to gain access to the premium trading platform. Unless you find a well-reputed broker, it will be really hard to ensure the premium trading environment.
Once you find your desired broker, start placing trades based on a trading strategy. Though you will lose a few trades, never lose hope. Stick to your trading method and try to recover your loss. Most of the time, you will be under heavy pressure to earn more money. But you need to overcome this mindset and trade the market with a relaxed mindset.
As you will trade more, you will gain experience in this market. This is where things start to take turn. Instead of placing random trades, you need to narrow down your trading strategy. Stop dealing with too many tools as it complicates the trading process to a great extent. Learn from your past trades so that you never make the same mistake in your trading platform. Find the faults in your trading strategy and try to improve your skills over a period of time. Once you get better at trading, start placing trades with managed risk.
Take a small break
Being a naïve trader, it is normal to get addicted to this market. But getting addicted to the Forex market is a very big mistake. If you want to survive in trading, you must learn to deal with quality trades. Forget the fact, you will be placing random trades to earn more money. Be on the safe side of this business and focus on your trading skills. At times take a short breaks so that you can refresh your mind. Spend time with your family members so that you don’t have to get bored with this business.