You probably have seen somewhere by now that Forex has about 5.3 trillion US dollars’ worth of transaction every day and it is more than any other marketplace in the world. In fact, the closest amount of transaction within a day is about 22.8 billion dollars and the New York Stock Exchange (NYSE). But the retail traders are only of 3.5 to 3.8 percent of the total. But there are a lot of successful traders too and some have even become a master in their work. You may be wondering how you can become one of them. Today we are going to discuss some of the facts about being a proficient trader and making profitable trades in Forex.
It takes time to become successful
If you have started trading in Forex and you have spent a couple of months, you already know how frustrating and boarding it can be. You will have to open your trading platform every day and look for swings in the price of the currency pair. Not only that, you also have to analyze the step up and resistance points to understand when to start a trade and when to stop one. Some even use the Fibonacci chart for a better understanding of the market. A trader has to do these every single day because they cannot be a position trader at the beginning of their trading career. If they can show patience in their work and master their senses of trading, they will be able to play alongside the big fishes and make fortune from their trading.
But, it takes time to reach that position in Forex from the start. Even it takes almost one to years for a decent performance from a novice trader. So, you must make a proper mindset for starting to trade in Forex and remember that it will take time to become a proper Forex trader.
Due to the easy accessibility of high leverage trading account, the expert Aussie traders can easily make a huge profit with a small amount of deposit. But in the CFD trading industry, you should never trade with high risk at the initial stage. In fact, the experienced Aussie traders never risk more than 2-3% of their account balance in each trade. Being a new trader you should start trading with the demo accounts. Demo trading accounts will give you the perfect platform to learn from your mistakes. In the demo environment, you can easily develop your simple trading strategy and trade this market with managed risk. Try to gain complete control over your emotions since it’s the best way to trade with discipline. If you ever trade with emotions chances are high you will blow your account.
Money should not be the main focus
This is one of the most common mistakes for young traders or novice traders. They make their goals based on the sheer outcome from their trading. They are only concerned about how much money they are getting back from the trades they are making. If you also make the same choice as them about your goal, you cannot prosper in time to become a proficient trader. You may end making profits consistently one day but, the time will be very long.
When you focus on the experience from your regular trading in Forex, your concentration will be straight at your work and improving it. A headache for money won’t bother you when you are trading Forex. You can ask any pro trader what is their suggestion about the goal when a person starts trading and they will all give you the same answer. They will tell you to aim at the sheer experience and the knowledge of trading in Forex, not how much money to make from it. Hope you will understand what is the right and wrong way for traders and plan your trading edge properly.