Everyone is working very hard to secure their financial freedom. Most of the people find it hard to support their family even after having a 9-5 day job. For this very reason, people often look for an alternative source of income. But creating a steady alternative source of income is hard. Unless you push yourself to the edge, you are most likely to lead an average lifestyle. But things have changed a lot over the past years. Many smart people in Hong Kong often consider trading as the best alternative source of for the jobholders. Many, people have quit their day job after mastering the art of trading. Since the Forex market is the largest financial market in the world, you can be sure no one will manipulate financial instrument price feed. It’s not all possible.
So, why do we need to trade Forex?
High-end brokers like Saxo and Q8Trade.net are offering leverage trading account to the retail traders. By using their service, you can easily execute high-quality trades with small amount of investment. So, it’s very obvious, you can make a decent amount of money with a very small investment. But securing profit in the financial market is a very challenging task. But if you read the rest of this article thoroughly, you will know the tricks followed by the experienced traders to ensure consistency in trading.
Use the best tools
You have to understand the fact, you are trading the most complex market in the world. So, if you trade with the low-end brokers, you are not going to make any profit. Most of the time you will get busy with technical glitch and false price feed of the trading platform. To avoid such complex issues, the pro traders in the Forex market always chose brokers like Saxo as their primary broker. Find the best broker, if you want to make a decent living out of trading.
Maintain a trading journal
Maintaining a trading journal is very crucial to your success. You can’t find the weakness in your trading strategy without learning the details of each trade. The pro traders always asses the losing trades in their spare time. They do so to find the faults in their system. You need to develop this habit since I will help you create a better trading system. But if you use a digital trading journal, things will not work. You need to write the details of each trade and this will also help you to overcome the problem of overtrading. You might be a part-time trader, still, you need to maintain a trading journal to keep things organized.
Scalp the market
Scalping is often considered as the most dangerous trading strategy. But this doesn’t mean you will never scalp. At times you will find high-quality trades in your trading platform and you should take advantage of that trade setup. Execute the trade with big lots and use tight stops. By following this simple trick you can easily increase the profit factors to a great extent. But this doesn’t mean you will more than 3% of your investment. No matter what you do, you should never exceed the safety limit in the trading profession.
Trade with confidence
You need to trade to lose money. If you look for the winning trades, you are most likely to get frustrated after having a few loss. At the initial stage, you have to focus on the long term goals and trade the market with the trend. Be prepared to accept the worst-case scenario. But always trade this market with a 1:4+ risk-reward ratio so that a single winning trade can cover 4 losing orders. Never improvise your risk management plan since it is the only thing which can protect your trading capital in the long run.