Thousands of traders are working day and night just to learn the art of trading. Even after going through all the resources many people fails to overcome the major barriers at trading. After failing to become a profitable trader, people start blaming the market and they eventually mess things up. To beat the market, you have to learn about the critical dynamics first. Once you study the critical variables of the market, you will know about the critical elements which can affect your trading performance. So, without any delay, let’s get into the details.
Size of your account
A trader who starts his trading career with a big sum of money is supposed to do well. He can easily earn a decent amount of profit without taking high risks. On the other hand, if a trader starts with a small capital, he will rely on the leverage offered by the broker. So, he will be taking the trades in a very aggressive way and thus you will break the basic rules of money management. To keep your fund safe, it would be wise, to start your trading career with the amount of money that you can afford to lose. If your investment is very low, it would be best to avoid trading the options market.
At times the market will change its direction without showing any valid technical cause. This usually happens right after the release of major news. So, if you want to keep your fund safe and take the trades with strong confidence, it would be wise to take your trades after assessing the news data. Most of the elite traders at Saxo fx broker UAE take their trades after they have assessed the news data. By doing so, they improve their trade execution process and make significant progress in their life. So, if you wish to beat the market, you must learn to assess the news data.
Time frame selection
People who trade in the lower time frame usually suffer a lot. They have to deal with many false signals and it becomes really tough for them to find the best trade setups. On the contrary, those who take their trades in a higher time frame, don’t have to deal with too many false signals. So, if you trade in the lower time frame, your performance will not be great. So, try to learn a higher time frame trading strategy as it will give you access to the global market in a relaxing trading environment. Moreover, you will be able to execute high-quality trades without having much stress.
Leverage of the account
Smart traders never trade the options market with the high leverage account. They know leverage can act as a double-edge sword. If you want to protect your capital, you should be taking the trades with the low leverage trading account. Once you become good at analyzing the market variables in the low leverage trading environment, you will become more confident with your actions and thus you can earn much more money. So, choose your trading account wisely from the start. Some of you may say that without having access to the high leverage account, no one can make a profit. But this statement is wrong. Many professional traders are leading their dream life just by using the 1:10 leverage factor in the market.
Trading without any routine
If you want to survive in the retail trading business, you should not trade this market without having any routine. A perfect trading routine is a must to make wise decisions in the investment business. If you break the rules and take trades in a random manner, you will make silly mistakes most of the time. Moreover, you will become confused with your actions and thus it will become nearly impossible to identify your faults. So, create a robust trading routine and follow it properly so that you can protect your capital.