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Becoming a professional trader in the Forex industry is a very challenging task. You might think trading is all about execution but in reality, it’s more like a business. There are many traders in Hong Kong making millions of dollars at the end of each month by using a simple trading strategy. Some of you might think trading is all about making a big investment. But this statement is not always true. If you fail to find the great trades with low-risk exposure, it won’t take much time to blow up a big trading capital. Similarly, when you trade with a very small investment, you will be placing trades with high risk only to ensure bigger gains. So think twice before you execute any trade. In today’s article, we will give you some precise guidelines. By following them, you can trade like the professional price action traders.
Know your risk tolerance level
The first thing that you need to do, is to understand your risk tolerance level. Some traders might be comfortable losing 5 % of their investment but this might not be the case for you. The best way to avoid such a problem is to follow the simple 2% rule of risk management. Those who are new to the Forex trading profession might wonder what the 2% rule is. Don’t worry! We will make things clear for you. In any trade, you should never risk more than 2% of your account balance. If possible risk only 1% since that will help to stay in this game in the long run.
Find a reputed broker
Once you have identified your risk tolerance level, it’s time to find a great broker like Saxo. Visit https://www.home.saxo/en-hk/ to learn about the professional trading platform. Since you will be trading the market with price action confirmation signal it’s highly imperative you have access to a robust trading platform. The professionals prefer SaxoTraderPro since they can easily analyze the different formations of the candlestick pattern and execute high-quality trades with an extreme level of precision. Some of you might say, the high-end brokers like Saxo have higher deposit requirements but this should not be a problem if you want to consider trading as your full-time profession.
Learning the different formations of the Japanese candlestick pattern
Learning about the price action confirmation signal is a little challenging since you will have to deal with the presence of too many signals. But there is an easy solution to this problem. Try to understand the psychological reason behind the formation of each candlestick. Learn about the basic candlestick pattern and try to use them in the demo account. Within a few months, you will be able to identify the key trading signals in the major support and resistance level.
Creating a trading strategy
Developing your price action trading strategy requires an extreme level of patience. Instead of using your real money, trade the market with the demo accounts. Brokers like Saxo offer excellent demo trading environment to the retail traders so that they can easily master the art of trading without losing any real money. Always remember, you are here to change your life. So never trade the market with real money unless you know the proper way to trade.
Focus on risk management policy
Once you master the price action trading strategy, you might become overly confident with your trading performance. Never think you can win big trades on a regular basis. At times you will have to embrace losing trades since its nothing but a part of this profession. However, this will never a problem for you if you trade this market with low-risk exposure. Try to keep things running in an organized way so that you don’t take any emotionally-driven decisions while trading the live assets. Just be smart and trade the market with confidence.
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