Losing money in the retail trading industry is very common. No matter which trading strategy you follow, you are bound to have some losing trades on a regular basis. Those who have strong knowledge about the CFD trading industry manage their losing trades in a very strategic way. They always take managed risks in each trade so that they don’t have to feel stressed during the trade execution process. On the other hand, rookies keeptrading the market in a very aggressive way and lose a significant portion of their trading capital.
In this article, we will teach you some advanced techniques by which you can stop losing money like the crazy trader. Though it will take some time to master the techniques, with proper devotion, you can expect to become good at trading in less than six months.
Trade the major pairs only
Novice traders don’t have any specific set of financial instruments in their trading list. They keep trading random assets and expect to make big profits without even knowing the details of this market. The price movements in the cross pairs are not that predictable. Even if you are good at doing technical analysis, you might not find the best possible trade signals in the market at the right time. That’s why skilled professionals always encourage rookie traders to trade in the major currency pairs only. As the price movements in the major currency pairs are much more stable, it will become much easier to find reliable trade signals.
Maintain a trading routine
The elite traders at Saxo capital markets Singapore always trade the market by following a strategic routine. They don’t like the idea that they can take the trades at any instant. Though you will get access to the online trading industry 24 hours a day, you should still have fixed trading hours. Without following certain rules in the trading profession, you will never learn to trade the market like a professional trader. You might be thinking that following the trading routine is an easy task. Trust us, it is one of the most difficult tasks for rookie traders.
Trade with 1% risk
People keep losing money because they focus on revenge trading methods to recover their losses. As a CFD trader, you should never push yourself to recover the losses in the trading profession. You need to follow certain rules and take the trades with less than 1% risk. Once you lower your risk exposure, you will not be upset to accept the losing trades. By learning to embrace the losing trades, you will learn to focus on the high-quality trade execution process. Never think you can become good at trading without assessing the risk factors of the market.
Go with the market flow
Elite traders always trade the market with the major trend. To them, a trend trading strategy is the most efficient way of making a profit in the Forex market. If you truly believe trading is the right profession for your business, you must master a trend trading strategy. Once you become good at identifying the trend, you will lose fewer trades in the market. Rookies have a hard time in the trading profession because they don’t give priority to the existing trend. They keep taking the trades in a very aggressive way and lose money most of the time.
Improve your discipline
To limit your loss in the CFD trading business, you must improve your discipline. Without improving your discipline, you will never feel confident with your actions. Smart traders have written rules which they follow precisely before taking any trades. To ensure the safety of your trading capital, you should also do the same. Never be shy to accept the losing trades. Consider it as your business costs and try to improve your rules to reduce your losses.