Understanding the nature of successful Forex traders

by Clare Louise | March 5, 2018 9:13 am

In the online trading industry, only 5% of the people are able to make a consistent profit. By seeing such a low success rate you might be thinking that only a handful number of traders are trading the market. But in reality, the number of active traders in the United Kingdom is rising exponentially. Most of the high-class brokerage firm like Saxo is now offering high leverage trading accounts to their clients. So even after having a small amount of trading capital you can easily make a huge amount of profit. But trading the market with high leverage is extremely risky. Even the most senior traders at Saxo often trades with low leverage since the nature of Forex market is totally unpredictable. In today’s article, we will discuss how the expert traders in the United Kingdom trade this market with the high level of precision.

Precise knowledge about the trading industry

All the successful Forex traders have very precise knowledge of the trading industry. They know very well without having a proper money management plan, it’s almost impossible to make money on regular basis. If you look at the novice traders you will understand why they are losing money most of the time. The majority of the novice traders don’t have a clear knowledge how this market works. They simply trade this market based on their gut feelings and loses a significant portion of their investment. Mastering the art of trading is really hard. You have to learn the three major forms of market analysis or else you will not be able to find the high-quality trading signals in favor of the long-term trend. As a retail trader, you have a lot to learn from the expert traders. If you can follow the footstep of the successful traders making money will be extremely easy for you.

Control over emotions

We are human beings and we are not programmed to embrace the losing trades. The majority of the new traders start taking excessive risk in their online trading account[1] after facing a series of losing trades. But do you really think that the expert traders are doing the same mistake? They always consider their losing trades as their business cost. Most importantly they are always ready for the worst case scenario when they place any trade in the global market. If you fail to control your emotions in the Forex market, you will end up by trading with big lot size. Big lot size trading will never help you to become a successful trader. In fact, it will help you to blow your trading account. Trading is nothing but a business. You have to consider the normal growth factors in the Forex market. There is no shortcut way to become rich and you need to gain complete control over your emotions to become a better trader.

Learning the fundamental analysis

Most of the novice traders in the global trading community is placing trades based on their technical knowledge. They never understand the true power of fundamental factors in the Forex market. They simply placed trades after doing the technical analysis. Unlike the novice traders, the expert traders know very well that fundamental factors are the most powerful price driving catalyst in the Forex market. They never take any trade based on the technical data. Some retail traders might say that fundamental factors are the hardest things that the traders have to learn in the Forex market. But if you learn the basic stuff of fundamental analysis it will be very easy for you.

So far we have discussed three major things which the professional traders follow in their trading career. If you truly believe that trading is the perfect profession for you, you have to develop these qualities deep inside you. The first part of your trading career will be a little bit hard but within a few months, everything will become easier for you.

Endnotes:
  1. online trading account: https://www.home.saxo/en-gb/accounts

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