Learning to trade the market like a pro trader is a very challenging task. If you look at the experienced traders, it won’t take much time to understand the importance of proper education in the trading business. Over the past years, the number of active traders has increased to a great extent but when it comes to success rate, the rate is still at 5%. To be precise, only 5% of the retail traders are able to make consistent profit from this market. So, how do we become successful in trading? To be honest there is no exact answer. However, if you follow five golden rules, you can easily protect your trading capital. These five rules are
- The 2% rule of money management
- Trading with the major trend
- Trading with a high-end broker
- Analyzing the fundamental factors
- Control your emotions
Table of Contents
2% rule of money management
Trading is nothing but finding the perfect trades with managed risk. If you truly intend to make consistent profit from this market, make sure you never take more than a 2% risk. At times you will find high-quality trade setups but this doesn’t mean you increase the risk exposure. The pro traders know very well that the outcome of any trade is completely random. Unless you gain complete control you’re your risk management policy, it will be really hard to protect your trading capital
Trading with the major trend
Being a new trader in Hong Kong you need to find the perfect way to spot the long term market trend. Those who trade against the major trend are always losing money. You need to understand the fact, most of the time the market stays in favor of the long term trend. So, if you think you can make a decent profit by trading the major reversals you are making a big mistake. Try to use the trend line tools in the daily or weekly time frame since it will help you to make a better decision.
Trading with the high-end broker
Choosing a perfect broker is very important. Before you open a real trading account, make sure you visit https://www.home.saxo/en-hk to learn more about the professional trading environment. The elite class traders in Hong Kong never trade the market with the low-end broker. The low-end broker never offers a premium trading environment to the retail traders. They will give different bonus offers and this is a big trap. You can’t become rich by taking the bonuses offered so try to learn the art of trading. If necessary, use the demo account offered by the high-end broker since it will help you to make a better decision.
Analyzing the fundamental factors
Fundamental factors are the most powerful price driving catalyst. Sadly the new traders always ignore the fundamental factors. Eventually, they end up by executing trades prior to the event of major news. Though they might get huge profit if the news goes in their favor, in the long run, they are most likely to lose money. You need to learn the proper way to analyze the fundamental variables or else it won’t take much time to lose your entire investment.
Control your emotions
Learning to control your emotions is one of the most effective ways to make money in the Forex market. You might think emotion has nothing to do with your profit factor but in reality, psychological factors play a great role in your success. You need to have the ability to embrace the losing trades on a regular basis. Losing trades are nothing but a part of this trading profession. Unless you train your mind, you will not be able to make a decent profit from this market. So, think twice before you execute any trade with emotions. Consider it as your business and you will see a significant change in your trading career.