5 Rules You Should Never Break At Trading
The world is getting more competitive and people are struggling hard to secure their livelihood.
If you want to make your life better you need to from a different angle. Instead of doing your traditional day job you can start trading the Forex market.
Once you learn to trade the market, you won’t have to look back again.
The majority of the retail traders are using high leverage trading account and for this very reason, they can trade this market with small capital.
Trading is more like art but sadly the majority of the traders are losing money.
Let’s find out some of the common rules which you should never break at trading. If you can follow these rules, you can expect to become a successful trader.
1) Never trade with emotions
Those who are emotional are always losing money. Trading is not for traders who don’t have any skills.
You have to learn about technical and fundamental analysis so that you can find the best possible trades in this market.
If you become emotional it’s very obvious you will lose most of the trades.
Rule number one, never trade the market with emotions. If you feel the urge to trade with emotion after losing a few trades, take the day off.
2) The 2% rule of money management
You should never break the money management rule. The rookie traders in the fx trading industry are losing most of the trades since they are always taking a high risk of trading.
They think it is one of the most effective ways to secure financial stability.
No matter what, you should never break a 2% risk management rule.
The pro traders often suggest the naïve traders reduce the risk at trading by 1%. It allows them to trade the market without any stress.
3) Always trade with a regulated broker
You should never trade the market with an unregulated broker. If you trade with the unregulated broker, you might even get scammed.
Chose brokers like Saxo Hong Kong so that you can enjoy the best possible trading environment and make the right decision.
Once you find a reliable broker, you will get access to the premium trading platform.
By using the premium trading platform you can expect to do the perfect market analysis and make decent trades without having any high risk.
So, select your broker very carefully if you want to survive at trading.
4) Trading against the major trend
There is a saying in the Forex market, the trend is your friend. If you trade against the major trend, you are going to lose most of the trades.
Being a naïve trader, you should analyze the market in the bigger picture. By analyzing the higher time frame data, you will get the unique opportunity to find the best possible trades.
Though the trend trading strategy is a very complicated task, still it is one of the most effective ways to earn money from this market.
So, focus on the trend trading method so that you can get the possible signals in favor of the trend.
5) Trade-in a clean chart
The naïve traders are always busy with the indicators. They are trying to earn more money by using too many indicators.
Using too many indicators in the trading charts makes things overly complex and it becomes nearly impossible to read the price action signals.
Try to learn the price action trading strategy so that you can find the best possible trades at the critical support and resistance level.
Instead of using the lower time frame try to find the signals in the daily or weekly time frame.
Once you learn to trade this market with the help of the price action signals, you can expect to make a big profit.
By now you know the top 5 rules which you should never break as a currency trader.
Follow the rules in this article so that you don’t have to lose too many trades. And be confident trader so that you can earn a big profit and change your life.