The pro traders are always taking the low risk to trade the market. They never take unnecessary risks to earn a huge amount of money. Being a new trader in Singapore you have a lot to learn from the experts. The experts know the perfect way to deal with market dynamics. As a beginner, you should stop thinking about the profit factors and focus on long term goals. Unless you trade the market by following some fixed sets of rules, it’s very hard to save your investment. Let’s know about the key skills of the elite traders.
Higher time frame trader
The higher time frame trader always makes a decent profit. They never take high risk in the lower time frame. If you start analyzing the higher time frame, within a short period, you learn to trade the market like the pro trader. Most importantly, the quality of the signals generated in the higher time frame is extremely good. But to trade the higher time frame, you must develop your patience level. Without having patience, you can trade the higher time frame like the pro trader. Most of the time you will break the rules and lose money in your trades.
Focus on the risk to reward ratio
To become a profitable trader, the risk to reward ratio should be maintained in each trade. Making a consistent profit is not about finding quality signals. It’s more about your recovery factor. No matter how well you understand the CFD trading industry, you will always lose some trades. Unless you have a good recovery factor, you are not going to make a consistent profit from this market. Think like the smart investors in the Forex market. Trade with 1:5+ risk to reward ratio so that you can easily scale the trade. If you lose a trade, one winner is enough to recover the loss. So, never trade with 1:1 risk to reward ratio as it kills profit factors in trading.
Trade with the price action signal
The pro traders are always trading the market with price action signals. They never execute random trades with indicators. Does this mean you have to learn price action trading? The obvious answer is YES. If you intend to become a professional trader, you must learn to trade with the price action signals. Being a new trader, you should not trade the market with real money in the learning stage. Open a demo account and try to develop your skills. Once you get good at trading, you can easily trade the market like a successful trader.
Stop chasing the past
You might lose some money from the best trades, but if you chase the past trade, you can’t focus on the future. Becoming a profitable trader is more about timing. Thinking about the low-quality signals or the losing trades doesn’t mean you will start making a big profit. Instead of thinking about missed opportunity focus on the next trade setups. Keep pace with the market dynamics and only then you will be able to make a profit. And never try to become a millionaire as it ruins the career of the traders.
Revise your trading strategy
You must revise your trading strategy on a regular basis or else it will be really hard to keep pace with the changing market. Most of the naïve traders don’t know the perfect way to place a trade. They simply buy an expensive trading system and expect to make a profit. Though such an approach might work for a few months but once the trend change in the market, you will start losing money. But if you trade with your trading strategy, you will know the key things to change when the market changes the trend. So, start trading the demo account so that you can develop your skills without losing any real money. Learn from your mistakes and create a routine like the elite traders.