Currency trading business offers you a great opportunity to secure your financial freedom. Highly regulated brokers like Rakuten offers leverage trading account to the real traders so that they can easily make a profit with a small investment. Having easy access to the high leverage trading account doesn’t mean you will be able to make consistent profit from this market. According to recent statistics, more than 95% of the retail traders are losing money since they don’t know the proper way to manage their risk factors. Unless you train yourself properly, you are not going to become a profitable trader. You must follow some basic techniques or else it will be really hard to survive in this market.
Get ready to learn new things
The first thing which you need to do is to train your mind. Never think you can make consistent profit from this market by using your emotions. Emotions are often considered as the most dangerous enemy for the retail traders. Unless you gain complete control over your emotions, it will be almost impossible to protect your trading capital. This will force you not to learn many new things. Before you join the Forex trading industry, you have to prepare yourself to learn new things. Start with the technical parameters of this market. Once you feel confident with the technical details, focus on the fundamental factors of this market.
Practice in the demo account
Before you start to trade the market with real money, you need to use the demo account. The trading demo account provides unique leverage to learn new things without risking any real money. You might feel bored with your demo trading performance but if stick to your goals, it won’t take much time to develop your skills. Based on your personality try to create a simple trading strategy so that you can make a profit at complex market conditions. Never think you can trade the real market without having any precise knowledge of this sector. Focus on long term goals and try to trade the market with proper discipline.
Trade the higher time frame
Those who prefer to trade the lower time frame are always losing money. Most of the time, the lower frame trade setups hit the potential stop loss. If you analyze the trade signals in the 1-hour time frame, you will be getting trades in favor of the market retracement. Try to rely on daily time frame data. Forget about the low-quality trade setups since it never works. Things might seem extremely hard at the initial stage but if you keep on trading the higher time frame, you will understand the importance of conservative trading strategy.
Learn fundamental analysis
Fundamental analysis is one of the easiest ways to make money online. You might have very little knowledge of this trading profession but this doesn’t mean you will ignore the high impact news. Many skilled traders often fail to make money since they rely on technical data. Learning the basic things of fundamental analysis is not all complex. Learn about the high impact news and see how the market reacts to such news. If necessary, use the demo account to trade the major news.
Try to dig deep
With some basic effort, you might know the details of this market but in the long run, it will be nearly impossible to make a profit. You have to rely on simple logic and trade the market with valid reason. Stop making things complex since it will make things worse. Have a look at the professional traders. All of them are following simple logic and trading the market with an extreme level of caution. So, never think you can make a profit without learning the details from the core. Work hard and know INS and out of this business.