The life of a professional Forex trader is very hard. You might be thinking trading is one of the best ways to live a luxurious life but in reality, this is not all true. Trading is only for the experienced professionals. You need to learn the three major types of market analysis to become a successful trader. So how do you learn spread betting? To be honest there is no exact answer to this question but if you work hard, you can easily master currency trading within a year. Today we will share four simple technique to learn spread betting.
Know the risk factors
Trading is one of the riskiest professions in the world. You are always placing trades by assessing the risk factors. The new traders always lose money since they don’t know the proper way to manage their risk. The moment you step into the retail trading industry is the very moment you start challenging yourself. If you do some research you will be surprised to see almost 95% of the traders are losing money. Due to poor risk management factors, most retail traders don’t understand trading is nothing but dealing with the probability. First of all, you need to prepare to embrace the losing trades. If you don’t do so, you will never become a profitable trader. The experienced traders always appreciate the losing trades as they can easily learn from their mistake. On the contrary, the novice traders start taking a huge risk and lose a significant portion of their investment after losing a few trades.
Trade with the demo account
As a new retail trader, you should never trade the market with real money. High-class brokerage firm like ETX Capital is now offering spread betting demo account to the retail traders to master the art of trading. In the demo accounts, you can trade the market as long as you want. You don’t have to risk your real money. Try to develop a simple but effective trading system in the demo environment. Unless you can make a profit for six consecutive months, you should never switch back to your real account. Demo trading accounts are often considered as blessings for the new traders. So make sure you use the demo account prior to live trading the market.
Learn price action trading
Price action traders are always trading with high-risk reward trade setup. Risk reward ratio is very important in Forex market since it allows you deal with losing trades very effectively. Being a new investor you might not understand the perfect way to deal with the losing trades. But if you learn price action trading strategy, you can easily execute quality trades at the key support and resistance level. The price action trading system is often considered as the best way to deal with your losing trades. Try to trade the market in the higher time frame since it is one of the best ways to avoid the false spike. However, if you still intend to trade the lower time frame, learn multiple time frame analysis.
Train your mind
Trading is all about psychology. If you simply follow the basic rules of money management you don’t have to lose any money in the long run. Majority of the retail traders are using negative risk-reward ratio to trade the market. They are always trying to get rich quick within a very short period of time. But learning from your mistakes can be really hard unless you are truly devoted. Focus on the long-term trend and you will see dramatic improvement. Consider the probability factors of the market and always be prepared to embrace losing trades. Never trade the market with huge risk as it will dramatically increase your risk factors. At times take some break as it will help you to take better decision.