How to master the art of forex trading
Forex trading is getting popular every single day due to recent technological advancement. People are considering forex trading as their full-time profession and part-time profession since they realized that the financial market has a lot to offer to them in the field of economic war. But sadly, statics ticks suggest that the number of successful forex trader in the financial world is pretty less compared to other professional sectors in the global community. Almost 95 percent of the traders are failing in forex trading and only 5 percent are making a consistent profit out of trading the financial instrument in the world. So who are these 5 percent people making consistent profit in the financial industry? These 5 percent are the elite traders who have paved their way into the door of financial freedom. You can also follow their path and secure your financial freedom in your real life or chose to join the remaining 95 percent of the retail trader’s community. But if you truly want to become professional traders in the forex market then you need to have strong determination and passion for trading in order to overcome the difficult stages in forex trading. In this article, we will discuss how to master the art of forex trading.
Learn the major three types of analysis: There are three major types of analysis in the forex market. Most of the novice traders in the financial industry use the technical analysis only to trade the live assets in the market. They simply don’t realize the fact that in order to secure financial freedom in the market they need to execute a trade based on three major types of analysis in the market. If you look at the professional traders of Swiss forex broker then you will see that they are using the fundamental and sentiment analysis along with their technical analysis result to execute any trades in the market. Fundamental analysis is the study of the economic performance of a certain country or assets in a given time frame whereas the sentiment analysis allows the traders to know about the market sentiment. It’s true that technical analysis will allow finding the best trading spot in the market but in order to trade along with the long term prevailing trend in the market, it is extremely important to know the fundamental analysis. Fundamental analysis is often considered as the price driving catalyst in the market.
Focus on longer time frame: If you look at the retail novice traders than you will find one thing common in every struggling trader. All of them are focusing on the shorter time to trade the market. Even they assess their trading performance based on few executed trades in the market. But to be honest this is not the right way to achieve success in the forex market. If you look at the professional traders of Swiss forex broker then you will see that all of them are focusing on the higher time frame in the market. They always focus on a higher time frame to execute any single trades whereas the novice traders use the smaller time frame. The rookie traders get carried always with their emotions after few consecutive winners or losers in the market. After securing few winning trades profit in their portfolio they start taking thinking that they have mastered the art of forex trading which is absolutely wrong. As full-time traders, you should always assess your trading performance at the end of the month and take action based on trading performance. For instance, you can analysis your losing trades in the market and try to come out with a better solution so that you can avoid them in future.
Money management: Most of the new traders often ask the professional traders that if there is any holy grail in the forex market. They simply want to make sure that they will have the best trading technique in the market to trade the financial instrument in the dynamic market. The professional traders of Swiss forex broker always say that perfect risk management factors are the Holy Grail in the forex market. If you have solid risk management plan then you can still make money in trading even after having more losing trades in the market. If you trade the financial instrument in the forex market then losing trade will be a part of your trading career. As a trader, you need to embrace your losing trades in the market just like the winning trades. But this thing is extremely difficult since the human mind is programmed by nature not to accept any loss. But if you truly want to become professional traders in the forex market and learn the art of forex trading then you need to reprogram your mind to embraces managed loses in the market. Always make sure that you follow proper risk management factors before taking any single trade in the market.
Summary: Becoming professional traders is not an easy task rather it takes a huge level of patience dedication and sincerity. If you truly want to become a professional trader in the financial world then you need to learn about the three major types of analysis in the forex market. Make sure that you execute a trade based on the major three types of analysis in the market. If you have any losing trades don’t get carried always since there is nothing wrong to accept managed loses in the market. And always focus on longer term performance in the market.