While entering foreign exchange market there are certain factors that should be followed. Unless you take into account the key features in trade there won’t be any hope of success. So what is required to overcome all the fairs of losses?
First of all each novice trader should create and develop his trading strategy before trying to trade on a live account.Unfortunately, it seems to many traders that they have their strategy and techniques of trading, however after being asked a few questions they realize that it is not the case.
In the same way you can ask yourself the following questions and understand whether you master a specific strategy or not: “Do I know my trading strategy inside and out?” and “Have I reached the point where I can flick through the charts in 5 or 10 minutes and instantly know if there’s a setup worth trading or not?”. If you hesitate what to answer this means that you haven’t worked out your strategy yet. And if you think that you lack a good trading strategy we will help you by our advice.
Firstly, trading should be passed in a relaxed and confident manner. You should develop the ability of quickly scanning the markets and consequently making a confident decision to trade or not to trade.
Secondly, it’s necessary to pay attention on each detail in trade. At first sight it will seem difficult to imagine this; nevertheless the best way of achieving it is the following. It’s quite simple; you break your trading strategy down into smaller pieces. This is actually the “key” to mastering anything in life, if you break things down into smaller pieces, you will be able to focus more on each piece, rather than trying to do too much at one time. This, in turn, will help you achieve the goal faster and more effectively than if you try to do too much at once with no plan of action.
Thirdly, before sitting in front of the charts you should already know what to do. You first decide on what your entry trigger is and then decide how to trade it. There are many different combinations of price action setups and all of these setups that you’ve mastered will begin to “paint a picture” of the market for you and you will begin to have clarity and confidence whenever you look at a market’s price movements.
In order to become a master trader you should perform all the actions on demo account first and only after having gained sufficient experience you can pass on real trade. After having fulfilled all the actions with care you can have no doubt in your success.