Starting a currency trading business from scratch is a very challenging task. Those who are experienced in dealing with the investment business often suggest that naïve investors in Singapore not to trade Forex. The only reason why skilled investors discourage new investors is the high-risk factors involved in trading. However, the risk factors can be mitigated by following a few basic rules of investment business. Sadly, new traders never listen to such advice and they always break the rules to earn money. In fact, they consider trading as a quick way to become rich.
Read this article very carefully because we will highlight some of the key steps that you must follow to become a skilled trader. Follow the tips of this article and you can learn trading in a strategic way.
Prepare your fund
Before you start learning about the trading business, you need to gather some funds. Unless you trade the market with your idle money it will be tough to make some big profit. Professional traders always recommended the naïve traders in Singapore to trade with the money that they can afford to lose. You might say you will gather money after learning the art of trading, but things go really fast when you start trading the demo account at the Saxo bank group. You will start trading with real money and due to your low investment, you will not be able to make a big profit. Focus on your long term goals and try to improve your skills by sticking to the basic details of this market. Until you have enough capital to start your trading career, focus on your education.
Learn technical analysis
The first thing that you should learn is technical analysis. Technical analysis is the study of the Japanese candlestick pattern that allows the traders to find the perfect trades. Those who relate technical analysis with the use of indicators has a lot to learn. Even if you have access to the best trading platform, you won’t be able to make a consistent profit. Learn to find the critical support and resistance level in the daily time frame. The majority of naïve investors trade the minor support and resistance level. Even if you use the price action signals to trade the minor levels, you are not going to make any profit.
After learning the art of technical analysis, you should focus on the news factors. Analyzing the major news is one of the most complicated tasks in the trading business. If you want to earn a consistent profit, you have to focus on the news factors. Those who ignore the importance of fundamental analysis are always losing money. They don’t even know how to stay safe in the event of the major news release. Think about the pro traders who are making millions of dollars in profit. They blend technical and fundamental data to find quality signals. Things are not as difficult as it seems to the new traders.
Learn to assess the sentiment
Sentiment analysis is one of the most crucial parts of trading. Naïve traders never analyze the market sentiment and they execute random trades to earn more profit. But have a look at the senior traders in our society. They always consider the market sentiment as the most one of the most important elements of trading. If you want to make a big profit, you must use all three forms of market analysis. Based on these three types of market analysis, you have to execute the trade with low risk.
Becoming successful in real life is very hard. But if you look at the professional traders, it won’t take much time to realize why naïve traders are losing money. They don’t have the skills to deal with the complex price movement. Focus on your trading education and follow the tips of this article to ensure your success in the trading business.