Originally Posted by
sandysr
Learning something new is always very challenging. When it comes to Forex trading profession, things are really hard. You might have extensive knowledge of the retail trading industry, yet you might have to lose money. Managing your risk is the most crucial task for the novice traders. If you look at the success rate in Forex trading profession, you will be surprised to know, only 5% of the traders are able to lead this life based on this profession. But there is nothing to worry! Majority of the rookie traders are losing money due to lack of trading knowledge and discipline. In this article, we will give you a clear guideline which will help you to become a successful trader within a very short period of time.
There are three major types of market analysis. Technical analysis is the most basic one. It helps the retail traders to find the high-quality trade setups. Fundamental analysis is the second major form of market analysis. This is nothing but studying the high impact news release. The new traders often find it really hard but in order to master the art fundamental analysis, you don’t have to become a student of economics. Just by knowing the basic economics, you can easily do the proper fundamental analysis. Last but not the least is the sentiment analysis and this something which you can never learn by reading books and articles. You will slowly understand the sentiment of the market over the period of time.
Develop of trading strategy
This is one of the most crucial stages for the novice traders. You can’t make a huge profit by using other people trading strategy. Based on your basic knowledge you have to use the demo accounts to develop your trading skills. Forex trading demo concept has changed the life of many traders. You can trade the market as long as you want without risking any real money. Demo trading accounts will give you the perfect trading environment and you won’t have to lose any real money for the losing trades. This is nothing but your practice field. Having access to the demo accounts is a great advantage since you can develop a perfect trading system.
Backtest your trading strategy
Before you start trading with your real money you must backtest your trading strategy. Trading strategy greatly varies from traders to traders. So if you think you will do the backtesting from the expert Aussie trader, it will not help. You have to use your new system and demo trade the market for the first few months. This will eventually help you to find the bugs in your system. Try to maintain a journal so that you can assess your demo trading performance and bring necessary change to your existing trading strategy.
Learn price action trading
Price action trading is one of the easiest ways to trade the Forex market. Majority of the successful trader uses price action confirmation signal to trade the key support and resistance level. Being a price action trader you can also trade the lower time frame with a high level of accuracy. But the new traders are suggested not to trade the lower time frame since it increases the risk factors. However, if you can learn multiple time frame analysis, lower time frame trading might be extremely profitable for you.
Control your emotions
Emotions are often considered as the greatest enemy for the novice traders. You must check your emotions or else you will never be able to deal with your losing trades. Most the time, the rookie traders blow their trading account due to big lot size trade. You have learned the proper way to calculate your lot size. Trade management is the most important ingredient for your success. You have to work smart and set realistic expectations and only then you will be a profitable trader.