Rohan MathawanAn ambitious trader is enthusiastic and looking forward to huge profits. However, it is important to think about why there are so many traders around the world, but only a few of them really make money. Let’s find out the answer.
Why Exercises Are Significant?
Do not ignore trading on a demo account, and involve in real trading only after a successful test of your trading system. Perhaps you will agree that trading on real money, albeit small, perception is completely different than when you know that you are risking virtual money.
Do not underestimate cent accounts, even if you are an experienced trader – using new trading methods, you will significantly reduce the risk of losing money. After making sure that everything works, you can find the login page to join Olymp Trade and switch to a real money account.
Using a demo or cent account, a trader:
- keeps oneself in a good shape;
- develops a sense of the market;
- can test new trading techniques;
- can analyze errors from trading in real life;
- expands the comfort zone by increasing the deposit.
Looking for New Tactics
Many traders believe that there are only four trading tactics:
- Scalping, when a deal is closed in a few minutes with a profit of at least 1 point.
- Trading on the change of trends within the day at the close of one session and the opening of another, because the market usually reverses when moving from the European to the Asian session.
- Trading within the session (the target is 30-50 points).
- Positional trading on medium-term trends for weeks and months.
The main feature of the exchange market is the constant change in the rules of the game. Due to new economic conditions, the market is constantly changing. That is why it is better to use not one, but several approaches to trading. Do not catch short swings, which requires experience and skill, try to first learn how to make a small profit on strong moves.
Limit Your Risks
A trader must have a trading plan, but you cannot make a fixed profit every day – this market is volatile. If the situation is unclear, if the movements of the currency do not fit into your picture of understanding the market, do not trade at such moments. Also, do not enter the market just because you are tired of waiting. As traders say, “being out of the market is also a position.”
Before entering the market, be sure to determine the desired entry point and the level at which you will take profit/loss. There must be a good reason for every action you take. Therefore, awareness and determination are essential for a beginning trader.
In Conclusion
Any successful trading is based on rational decisions (sometimes on intuition), but never on emotions. Control yourself and it will pay off in full. You, your knowledge, skills, thoughts, and actions are the main things in trading.