The rookie traders are losing most of the trades since they don’t follow any rules. On the contrary, the professional traders in Hong Kong are making a decent profit since they always follow the basic rules in trading. Unlike the naive traders, they never break the rules and they keep on learning new things about this market. If you want to change your life, make sure you follow the rules mentioned in this article.
Trade the higher time frame
The novice traders must trade the higher time frame or else they will lose money most of the time. Lower time frame trading strategy might seem extremely profitable but it can increase the risk factors to a great extent. If you want to develop yourself as a professional trader, make sure you learn to trade the higher time frame. Though a higher time frame trading strategy might be boring for some you, it is the easiest way to find great trades. Try to rely on the key support and resistance level since it is one of the most efficient ways to make a profit from this market. Those who are breaking the rules and trading the minor support and resistance level are losing most of the time. So, to improve your skills and trading performance, start trading the daily time frame.
Start using the price action signals
You must learn to analyze the daily time frame by using price action signals. If you fail to find the quality signals in the trading platform, you are going to lose money. Finding the perfect signals in the Forex market is not so easy. Most of the time the traders find it hard to make a profit since they don’t know the perfect way to analyze the risk factors. If you want to change your life, make sure you rely on the price action signals. By learning to use the Japanese candlestick pattern you can improve your execution process. Once you get skilled with the price action trading strategy, you can trade any asset with a high level of accuracy. Most importantly, you will gain the confidence to trade the real market.
Dealing with the major news
Being a new trader, you should never try to trade the major news. News trading is only for expert traders. You have to be skilled at technical and fundamental analysis and only then you will get the idea of news trading. If you intend to trade the major news, make sure you try it in the demo account. A demo account should be considered as your learning ground. If you manage to make a profit in the demo account, you can expect to make some serious profit in the real market. So, develop your trading skills in the demo account to improve your knowledge. Try to understand the impact of major news on the currency pairs. Unless you know how the major news affects the price movement of a certain asset, use the demo account.
Be a disciplined trader
Without developing your patience level, you can’t become a disciplined trader. Those who don’t have any discipline can’t succeed in trading. You might think you can make big profits since you have a huge trading capital. You might have a million dollars in your trading account but this doesn’t mean you will win most of the trades. You might even lose a million dollars within a short period. So, if you want to develop your skills as a currency trader, make sure you focus on your discipline. Never break the rules in your trading system since it helps you to protect your trading capital. Focus on the long term goals and only then you will get the idea of the investment business. Never lose hope or blindly follow other traders after losing a few trades. Stick to your trading strategy all the time.