Trading is the smartest profession in the world but not everyone is skilled enough to make a career from it. Becoming a successful trader is not an easy task because 95% of traders lose their money and as a result, they quit trading. Only a 4% trader can make money from it and can be considered as a successful trader. One must need to have a combination of skills and a hardworking mindset to have a good hold to this trading market. Here we are going to talk about 4 tips which might come handy with your trading career.
The trading approach
If you are going for a journey you just need to determine certain things before starting that journey. The same thing goes for trading because there many essential things that you need to consider before you start to trade. First, you have to fix your trading style according to your personality and trading platform that suits your trading style. For doing that you must consider these two things:
Your investment horizon
First, you need to fix what type of trader you are. If you don’t like to keep your trade opens for multiple days rather than close it on the same day, then you are a day trader and you should look at a shorter time frame to find potential signals. If you like to keep your position open for multiple days then you should look at the daily chart to find potential signals. You should also determine how long you are going to be in front of the monitor watching charts to find signals. Like if you are a scalper then you must need to be in front of the monitor longer time than a usual trader and the stress level will be very high. Visit the link https://www.home.saxo/en-sg/products/futures if you intend to develop your career in future market.
After choosing an investment horizon now you need to fix a trading strategy according to your preference. For example, some traders like to buys at support and sell at resistance, some like to follow tools and indicators to find their opening and closing positions. After you fix these things along with your risk management rules, you need to backtest it through your free demo trading account and if your winning percentage is higher than your losing percentage then it might be effective and you may use it is your trading with real currency.
Traders should practice the following attitude:
A trader must need to be patient when he is looking for a signal in his trading platform. Suppose you find a good opportunity and you want to enter the market at a certain price and somehow you were unable to enter that price then you should wait patiently before making any move or it will be wise to leave that signal and look for another one. Because if you miss your pre-determined price and an open position at another price then in that time market can change its path as a result you might face loss.
Discipline is a must for any profession in the world and also in trading once you built a trading strategy for yourself along with a risk management rule then you must need to follow it accordingly. No matter how tough it is to follow that strategy you need to stick to that plan.
There is no trader whose win rate is a hundred percent and even if a trader has a 60% winning rate then he might be considered as a profitable trader. Even your winning rate can be 40% and even you may be in profit if you just follow proper money management rules.
In this industry, if you want to make money then you must need to take a risk and without proper risk management, you cannot shine in this market. You must have to be patient and discipline so that you can make maximum profit when the market is going in favor of you.