The foreign exchange market, often known as Forex, has become a very popular business. Many young stars have changed their lives by learning to trade the market from experienced traders. But finding a skilled trader in the Forex market has become a very tough job since most of people are losing money at trading. Today we are not going to give you amazing tips that can help you to find great trades. We will discuss some of the things you must avoid to survive in the trading industry. If you can survive at trading, you can expect to make a big profit in the long run.
High leverage trading account
Do you know the key reason for losing money at trading? Naïve Singaporean traders are always trading the market with a high leverage account. They think it is the best way to earn a huge profit. But if this was true, everyone in Singapore would have become a millionaire by this time. Leverage allows you to trade with big lots which eventually results in big losses. So, it’s obvious that if you lower the leverage you will profit will reduce to a great extent. But this will also limit your risk exposure. Low-end brokers offer unlimited leverage which doesn’t make any sense. Stay away from such brokers and find a reliable broker like Saxo who always offer rational services to their clients.
Trading the press confidence
During a major press conference, the market becomes highly volatile. The price starts to move up and down in a vigorous manner and the naïve traders consider it a great profit-taking opportunity. But if things was so easy, no one in this world would have lost money in trading. To become an experienced trader, you should learn about this market. To earn a big profit, you have to trade a stable market. Try to view the website of a reputed broker and you will learn a lot about news trading. You should only trade the major news if you are certain about the direction of the market. Most importantly, you also need to understand market sentiment. So, avoid trading the major announcement and press conference since you never know what will happen to the trading instrument.
Using the trading bots
By using the trading bots you can automate your trading process to a certain extent. Some of the advanced bots can even trade on behalf of the retail traders. But making your trading process fully automated is a very big mistake. You should always have control over trading. The bots and the EAs are designed to make the life of a trader easier. Unless you can do so, you are not going to earn any money. Think about the long term goals and try to improve your skills over some time. Stop relying on the major trading bots as it can ruin your trading career within a few days.
Trading the rumors
Amateurs are active in most of the social trading platforms. They act promptly on the rumors to earn a big profit. You should place any order in the market unless you are certain about the authenticity of the news. Most importantly, you should analyze the market data so that you know why you are placing the trades. Though it’s a super complicated process, still you should learn the technique to filter out the false information in the market. You should never pay attention to the low-end blogs since they are not sure what they are publishing.
We have discussed some very important factors in the Forex trading industry. If you want to survive in trading, you must follow the tips of this article. Never become an aggressive trader based on other people’s opinions. Rely on your trading strategy and trade with caution.