Everyone wants to secure financial freedom in their life. They always look for the best source of income to support their family. In the world economic crisis finding the perfect profession is really very hard. But things have changed a lot over the past years. People have gained access to the investment world which helps them to execute big lot trades with a very small investment. But having access to the financial industry will not help you to secure your financial freedom. You have to understand how this market works and trade with solid discipline. The successful traders had worked really hard to develop the balanced trading system. So if you believe that trading is the right profession for you and you want to secure your financial freedom, this article is the perfect solution for you.
You need to start learning the Forex trading from the scratch. First of all, learn about the structure of the market. You have to know about the active participants and key price driving catalyst of this market. Things will be a little bit tough for you at the initial stage but if you focus on the key factors everything will become easy for you. Let’s read the key steps that you need to take to become a professional trader in the retail trading industry.
Step 1- learn technical analysis
Technical analysis is the most basic part of the retail trading industry. It helps the traders to find profitable trades. Starting from the novice traders ending with the professionals, everyone uses the technical parameters to find the most profitable trades in the market. Being a new trader you might be fascinated with the lower time frame trade setup but this is just like a suicide mission. In the lower time frame, you will have to deal with lots of false trade which will eventually ruin your trading performance. Start using the daily time frame as it will give you much more accurate signals.
Step 2 – Learn fundamental analysis
Fundamental analysis is often ignored by the novice traders. They consider it as a waste of time. But the expert traders in the fx CFD trading industry always consider it as the most vital element in Forex market. The market becomes extremely volatile prior to the high impact news release and it can even change the long-term market trend. You might find the fundamental parameters little bit hard but if you focus on the key market news things will become really easy for you.
Step 3 – Demo trade the market
Demo trading accounts are often considered as blessings for the new traders. It helps the traders to use the virtual dollar. You can trade the real price feed and see how your trading system works at different market conditions. Though you will be trading the demo market for the first few months, this is the best time to develop yourself as a profitable trader. If you break rules in your learning stage, you will never be able to control your emotions. Demo trade the market just like your real trading account. Once you are able to make consistent profit in the demo environment switch back to the live trading accounts.
Step 4 – Risk management factors
Step 4 is very crucial to your success. The retail traders are always taking a bigger risk to earn huge money by using the market leverage. On the contrary, the experienced traders are always trading with small lots. You don’t have to win all trades if you trade the market with high-risk reward ratio. A simple 50% win rate can make profitable traders provided that you are trading 1:3 or higher risk-reward trade setups. Learn to check your emotions when you lose few trades in a row. Stop following aggressive trading strategy as it will force you to overtrade the market.Updated Date: 12 April 2018, 14:34