Trading is a very challenging profession. If you carefully assess the success rates, you will become upset since less than 4% of the traders are actually making a decent profit. It’s more like a dream job for most of us. But don’t think you can’t learn to trade like the experts of the UK. The majority of the CFD traders are losing money since they can’t control the greed. Greed is like a poison that kills a trader. No matter how good you are at analyzing the market data, you must limit the risk exposure and boost your confidence level by following the key steps of trading.
There are thousands of steps you can follow as a trader. But considering the overall situation of the trader, we will review 4 key steps that can make you a well-balanced trader. In other words, it will help you to regain your confidence level.
Trade to lose money
This idea might sound interesting but it is the only way you can have zero expectations from the market. Traders are always calculating the profit and then they are analyzing the potential risk. On the other hand, elite traders are always considering the maximum risk exposure and they are evaluating the potential profit. They are well prepared to accept the loss from any trade. In fact, they have zero expectations when they find the golden trade setup. When you set your expectation to zero, you will learn to control the emotions. Controlling their emotions is the most difficult task for rookies. After you get control over your emotions, you can embrace losing trades and still trade with a high risk to reward ratio. Eventually, a few winners will cover many losing orders and this will act as a great confidence booster.
Stop looking for the bonus or offers
Novice traders love to trade with bonuses and offers. They don’t realize these are the traps set by the low-end brokers. To be on the safe side of trading, you should stop looking for such a bonus offer to find a professional broker. In case you are looking for a reliable broker, you can have a look at Saxo. They offer a high-end platform and their customer support is also great. You can use their free educational resources and learn many key things about the CFD industry. Most importantly, the experts post technical and fundamental analysis of the major assets. By accessing the expert’s post, you can learn an organized way to analyze the market data. This will eventually boost your confidence level and allow you to trade in complicated market conditions. So, find a reliable broker that can help you with every aspect of trading.
Revise your trading strategy
You can make money with any form of trading method but the success will not last long. Every trading method requires revision. This is the reason why many successful traders lose money after a year or two. Those experts who live lives on the income from trading revise their trading strategy every quarter. It helps them to get themselves in line with the market condition. Most importantly, it allows traders to make a decision with confidence. On the other hand, novice traders don’t have any idea whether their trading strategy works or not. They are using the system and expecting decent returns.
Being a new CFD trader, you should back-test the trading strategy vigorously in the demo account. If you don’t know the win ratio of your trading method you are still not ready to trade the market Spend some time and try to learn about this market system. Focus on the key elements of trading so that you can make a decent profit without losing too much money. In case you mix things up, hire a professional trader so that he can do the back-testing for you.