Every single day the number of retail traders in the online trading community is increasing at an exponential rate. If you look at the professional traders in Singapore then you will notice most of them are trading with the reputed brokers like Saxo and making a decent profit at the end of the month. But in order to trade the live currency market successful, you must know how to execute the orders in the market by following strict trading discipline and rational logic. If you think that trading the financial instrument is a get rich quick scheme then you will lose money like the 95 percent of the traders. The forex expert always suggests the new traders use demo trading account so that they can master the art of trading without losing any real money. In this article, we will discuss three amazing rules that will make you a profitable trader in the forex market.
Figure: Features of professional trading platform
Develop a solid trading plan: There is nothing that you can achieve without a solid trading plan. Most of the professional traders in Singapore are trading the live assets with the professional broker like Saxo after developing a solid trading plan. Unlike the professional trader, the novice traders execute random trades in the market and thus lose their trading capital in the market. So if you truly want to become a professional trader in the world than the very first thing that you should do is to develop a solid trading strategy in the financial market. But in order to develop a solid trading strategy, you must have a robust trading platform like the SaxoTraderGo offered by Saxo. But don’t just into the real life trading without backtesting your trading system in the demo trading account. Once you feel comfortable with your trading system, trade the financial market with proper risk management factors.
Use the higher time frame: Most of the novice traders tends to trade the lower time frame in the market. But if you trade the lower time frame you will not be able to execute high-quality trades in the market. But it’s true that trading the lower time frame will give you lots of trading signals in the market but as a professional trader, you always need to focus on high-quality trade execution. Always remember that single high-quality trade execution is thousand times better than numerous low-quality trades in the market. If you are not sure how to trade the higher time frame in the market then you can use the demo trading account to gain confident in higher time frame trading.
Use protective stop loss features
There are some traders in the financial market who often trades the market without a protective stop loss. Most of the novice traders in the financial market things that they have a huge amount of money in their trading account and for this they don’t use any protective stop loss. But the forex market is an extremely volatile market and there is no guarantee that the market will move a certain portion for a specific period of time. For instance, during the Brexit event, the GBPUSD pair dropped more than 2000 + pips in a single day and this enough to wipe out your big trading account in the market. So always protective stop loss to save your trading capital.
Summary: There are many things that you need to take care in order to become a profitable trader in the forex market. If you are relatively new in forex trading then make sure that you follow the above-mentioned tips since it will help you to enhance your trading performance in the market.