Learning the proper art of trading is a very challenging task. You might have a huge amount of money but still, there is no assurance you will be able to make consistent profit from this market. In fact, more than 95% of the retail traders are losing money in the Forex market. Though the success rate is pretty low in the trading profession, the number of retail traders is still rising at an exponential rate. The new traders start to trade the market with great hope of becoming millionaires. However, due to a lack of knowledge and proper trading skills, they blow up the trading account within the first six months.
So, what should you do after blowing up the trading account? Most of the rookie traders fund their trading account again and start trading. But this is a very big mistake. After blowing the first account, you need to follow the steps mentioned below to develop yourself as a professional trader.
Prepare yourself to work hard
The new traders don’t really understand the importance of proper education. Just have a look at the successful traders in Hong Kong. All of them have worked really hard to learn the details of this business. So, after blowing up your trading account, you need to devote yourself to mastering the three major parts of this market. Learning the technical details will be a little bit easy but when it comes fundamental and sentiment analysis, you will have to face some trouble. Unless you have strong determination, devotion, and dedication, you will never be able to find the very best trades.
Trade in a demo account
After getting the basic idea about this market, you need to open a demo account with reputed broker Saxo. Feel free to visit https://www.home.saxo/en-hk to learn more about the professional trading environment. Once you have access to a premium trading environment, try to trade the real price feed with the virtual dollar. Losing or winning doesn’t really matter since you will be learning the process of trading. Instead of trading the market in the lower time frame, focus on the daily and weekly time frame. Try to create a simple trading strategy so that you can easily make a profit at any market condition. Make sure your trading strategy allows you to trade with the major trend. Never create a counter-trend trading strategy since it will result in heavy losses.
Enhance your knowledge
Do you know the key reason for which the rookie traders blow up their trading account? Most of them don’t have a clear idea about this profession. In fact, they consider Forex trading as a get rich quick scheme. Those who want to make a quick profit from this market will always lose money. So, never reinvest your money if you’re looking for a short cut.
Developing yourself as a professional trader after losing your first investment is a very challenging task. But if you manage to enhance your knowledge, you can easily use high leverage trading account make a decent profit with small trading capital. You need to consider the fact, leverage acts like double edge sword. If you fail to manage your risk factors, you will again blow up the trading account. Learn more about trade management skills so that you can find quality trades.
Maintain a proper trading routine
The retail traders are losing money since they don’t have any specific rules for trading. So, it’s highly imperative you develop a balanced trading routine. Write down your trading plans and follow your trading routine with an extreme level of caution. At times you might not get any good trade setups but this absolutely normal. Wait patiently and look for quality trades only. Never trade this market with a negative risk-reward ratio as it forces you to lose more money in the long run.