“Nothing is obsolete.” you might have heard this sentence a few times. It is true for every aspect of our universe. You cannot presume anything precisely. In the case of professional work like a job or a business, this sentence is also true, sort of. Because you cannot guess what you are about to get in return from your work. It will be a success, or it will be a fail only God will decide. Well, if you are an employee of a company, you will still get your salary at the end of the month. Whether your project is a hit or not, it won’t bother your monthly income. Yes, you might lose that job of yours, if your project becomes a great flop. But, let’s talk about trading business. Why should you follow the same principle here? Let’s talk about it in this article.
Use stop loss
As trading is totally uncertain about whether you will make money or lose some from your account, you should follow some precaution for your trades. You should place stop losses in your every trades. What is a stop loss in Forex trading? It is the limit that you will set while your trade is open. The limit will be for your loss. Basically, what you are doing is, you are setting a threshold of your loss in a particular trade. If you manage to execute a bad trade which you will when you are a novice, you will be able to prevent a trade from making too many losses. After you have gained some confidence about your performance, you can avoid using the stop loss. But, it will be always there for you to protect your investment per trade.
Learn price action trading
Price action trading is one of the easiest ways to filter the best trades. But sadly very few traders in the exchange traded funds community knows the reliable pattern of the Japanese candlestick pattern. Some of you might think this system is really complex, but if you understand the psychological reason behind the formations of each candlestick, you can easily make a huge profit. Instead of trading the key support and resistance level by using the indicators, you need to start using price action signal. Once you understand the basic structure of this system, you will see significant improvement in your career. Though the system is extremely profitable yet you should never take a huge risk in any trade. Always remember, no one knows the outcome of any trade.
Stop trading for a while
Trading is a regular work for a newbie. In fact, before you start trading you have to make a trading schedule. That way, you will be able to join the marketplace regularly. And it is important because traders need to sharpen their mind with trading knowledge to become a successful one. But, you can take leave every once in a while. When you are pacing too much-losing trades, you should give it up for a while. Take time to cool your head down. Meanwhile, take some new lessons from your mentor or online blogs or video courses. That way you can freshen up and improve your trading strategy at the same time.
Avoid the trading news
For those who don’t know, there is trading news for the help of traders. They are based on the estimation of experts. It important to watch the trading news to get little idea about a specific market or multiple ones. But, you and I don’t need to follow that news. Those traders who trade with a lot of money and keeps their trade for a long time, have to look at the news. But, small retail traders are dealing with a really small amount of investment comparatively. So, if you can let go off of the trading news and focus on your own work, you will be able to make a decent amount of income.