Forex market is the largest financial market in the world. Every day more than 4.5 trillion dollars is traded all over the world. Due to gigantic nature of this market, no one in this world has the potential to manipulate the price feed of a certain asset. Unlike the stock market, this market has a neutral viewpoint and those who have the ability to understand the language of the market can easily make a decent profit. The novice traders are always losing money since they don’t have enough patience to wait for the best trades. They are always overtrading the market and breaking their own rules. So how do you become a profitable trader in Forex market? Today we will share some four essential technique which might even change your trading career.
The market has no emotions
Those who are new to the Forex trading profession are very emotions. They always trade the market with emotions. But emotions have no place when it comes to retail trading profession. This market has no emotions and it reacts to the facts. Most of the time the fundamental factors are the major price driving catalyst. So you must do the fundamental analysis to find the best trades. Those who trade the market with technical data will never be able to find the best trades. You need to find a perfect balance between technical and fundamental data to execute profitable trades. And always remember the fact, this market has no emotions. So being emotional you will get nothing from this market.
Daily and weekly time frame trading
Higher time frame trading is the easiest way to find the long-term market trend. Those who trade the daily and weekly time frame can easily avoid false trade setup. When you try to find the key support and resistance level, focus on the daily and weekly time frame. If required do multiple time frame analysis since it is one of the easiest ways to filter out the bad trades. But higher time frame trading is extremely boring. Most of the time you will have to wait for a long period of time to get a single trade setup. There is saying, “Patience has its own reward”. If you believe trading is the right profession for you, you must develop a strong level of patience. If required use the demo trading account and try to master currency trading profession.
Chart pattern trading strategy
Chart pattern trading is one of the easiest ways to catch the large market movements. Most of the time the novice traders don’t have any knowledge about chart pattern trading strategy. They are biased with the indicator based trading system. Indicators are nothing when in comparison to chart pattern trading strategy. Being a new investor, you should only trade the continuation chart pattern. Those who want to trade the reversal chart pattern should use the demo account for at least six months. Demo trading account will give you the perfect practice field to learn to trade without risking any real money.
Psychological development is one of the most important things in the Forex market. Those who trade the market as a full-time profession must have a stable mindset to deal with their losing trades. The retail traders don’t understand the importance of mental stability in Forex market. So how do you develop mentality? This is very hard for the novice traders. You have to master the three major form of market analysis to deal with the complex nature of the market. Develop a strong reading habit and try to keep yourself tuned with the latest market news. Regardless of the outcome of each trade, you should always stick to the trading system. Trade this market with strong determination, devotion, and dedication.