We all know, trading is one of the most lucrative professions in today’s world. In fact, the pro traders in the United Kingdom consider trading as their business. They always trade the market with a strategy so that they can easily cover up their trading loss. If you want to trade the Forex market as a full-time trader, make sure that you are trading with a high-class broker like ETX capital. Some of you might say that choosing a high-end broker is not really necessary but this is one of the key factors for your trading success. You need to have a premium trading environment where you can do all the complex market analysis in a user-friendly interface. In today article we will teach you how to develop a balanced trading system from the scratch.
Learn the basic of the market
Without knowing the basic of the market it will be almost impossible for you to make a profit on the regular basis. You might have some big winners based on the emotional approach in trading but considering the longer time frame scenario, you are developing a bad trading habit. You need to have a precise idea about the structure of this market. Based on your basic trading knowledge you will be placing trades in the demo account for the first few weeks. If you start trading without knowing anything, you are actually gambling. You need to understand that this market is only for the experienced professional. So it’s time for us to move to the next step.
Open a demo account
We all know that the best way to learn the art of trading is start trading in a demo account. In a demo trading environment, you can easily understand the dynamic nature of this market. Some retail traders often complain that in the demo account they don’t get the feeling of trading the live account. But those who will say this are sure to lose money in the real market. You need to use the MetaTrader 4 demo account for at least six months so that you truly know you can trade profitably with your real money. You can start to trade with your real trading account form the very first day but don’t expect to make money. You need to understand the fact that only 5% of the traders are able to make a profit on a regular basis. So without assessing your trading performance in the demo account, it’s not a good idea to switch back to real trading account.
Trading the key support and resistance level
You need to learn how to find the key support and resistance level in the higher time frame. If you always trade the market in the lower time frame, you are bound to lose money due to false trading signals and spikes. For this very reason, the pro traders in the UK always prefer higher time frame trading in their trading career. But in higher time frame trading you will have to wait for a long period of time to get a profitable trade setup. So make sure that you are not losing your patience as a currency trader. Always remember the successful traders do nothing 99% of the time.
Price action trading strategy
Being a new trader you might be fascinated with the indicator based trading system. But in real life trading indicators will only help you to filter the false trading signals. You need to learn price action trading strategy to develop a balanced trading system. But learning the art of price action trading system will not help you to develop the perfect trading system. You need to incorporate proper money management to deal with your trading loss.
Money management is often considered to be the Holy Grail in the Forex market. So make sure that you always follow the simple 2% rule of money management to save your investment.
