Everyone wants to become a millionaire. People always try their best to secure their financial freedom but even after doing all the hard work, the majority of us end up with an average life. Some of you might think about starting a business but the initial investment might be the key obstacles for you to overcome. For this reason, people often prefer to stick to a day job.
Things have changed a lot over the period of time. People can easily trade the market with a small investment by using a leverage trading account and make a decent profit. So, the size of your investment doesn’t have anything to do with your profit factors. But once you start to trade the real market, you will start losing money if you don’t stick to the basic rules. Let’s learn about the key rules which will help you to protect your investment in the long run.
Never trade against the market trend
Trading with the market trend is the only way to ensure a consistent profit. The new traders in the United Kingdom often execute a trade in minor market retracement and lose a significant portion of their investment. So, how do you overcome this problem? You need to trade the higher time frame data so that you always get the long term overview of the market. Never think you are going to make a quick profit from this market. Try to use a conservative trading strategy as it will protect your trading capital.
Develop a balanced trading strategy
All successful traders follow a simple trading strategy to execute high-quality trades. They never rely on other people opinion as it dramatically increases the risk factors. At the beginning of your trading career, start trading the market with Saxo Forex trading account. Unless you trade in a premium trading environment, you will not be able to do the perfect market analysis. Take your time and execute the trade setups based on precise setups. Stay in the sidelines when things are too confusing.
Join the professional trading network
Being a currency trader, you need to join the professional trading network. If you do some analysis, you will be surprised to see the simplified nature of the experienced trader. They never rely on the complex trading system rather they trade the key support and resistance level with simple logic. By joining the professional trading network you will be able to learn more about the advanced form of market analysis. Learning is a continuous process when you consider trading as your fulltime profession. So stop thinking about complex trading strategy and try to learn from the experienced traders.
Never over trade the market
Overtrading is a very common mistake for which the novice traders are losing tons of money. Being a new trader, you should never think to trade the lower time frame data. Though it will help you to execute more trades, you will be losing money most of the time. Try to trade the daily and weekly timeframe as it dramatically increases your win rate. If required, take a short break to overcome the habit of overtrading the market.
Maintain a trading routine
Do you really want to protect your investment in the Forex market? If so, you must follow a proper trading routine. You might think you follow all the rules in every trades but if you do the math, you will be surprised to see how often you break your trading rules. But if you start writing the details of each trade, it won’t take much time to learn about your weaknesses. Once you identify the faults in your trading strategy, you can easily eliminate those problems and win more trades. Being a currency trader you might even take excessive risks to recover the losses. But think about your trading rules and keep your greed in control. Without following a routine with discipline you will never become a successful trader.