The Foreign currency exchange market is the most volatile market in the industry.
If you have entered the market, then it is the first step to the successful career. Most of the traders enter the market without knowing anything but once they get to know they become the king of the forest.
If you consider the Singaporean traders, they are also king of the jungle, but they enter the market with the complete knowledge about it. Of course, the Forex market has drawbacks as well, but the professional traders would take advantage from the disadvantages as well. How do you think that they have become successful? How come only they can gain from the drawback?
You cannot achieve anything without the hard work so likewise, the professional traders did work hard. They spent their precious time and energy to understand the market. They worked hard to improve a better strategy. They tried their best to come to a good position in the Forex market. Moreover, they never had thought to give on trading. It is all about sacrifices and dedication. As novice traders, you might find it difficult to grasp it at first but with the experience and success, you will become a professional trader too.
Uncertainty should be handled
The drawback in the Forex market is its uncertainty. We cannot call it as a drawback it is the feature of the market. If you consider the experienced traders, they will know the best ways to handle the uncertainty up to some extent, but the naïve traders are in a pathetic situation. The naïve traders are in a pitiful condition due to not having the experience. But you should remember even the professional traders were naïve traders once. They did not have the expertise in trading yet they traded and faced losses. They did not give up even if the market was challenging to handle so the naïve traders should understand patience is vital to surviving in the market. Even the naïve traders will be able to handle the uncertainty tactfully with the time.
The brokerage and the broker
The brokerage and the broker are also part of the market. As traders, you should give enough importance to both the factors. When you are selecting a broker, you should check out whether the broker is offering the best trading platform and whether the brokerage is reasonable for the service provided. Forex trading is not only currencies but all these factors as well. If you want to become a successful trader, you will need the support of the broker as well. You should make sure to find the best broker such as Saxo.
Forex is not always a winning game
If you have the misconception as it is a winning game you should get rid of the mistake before entering the market. There is no counter argument for facing losses in the Forex market. Every professional trader would have lost money, but they were brave to deal with such situations. They learned and won the market.
Always try to trade in trending market. Majority of the novice trader loses money as they tend to trade in the ranging market. In ranging market, you will be able to make a profit for a specified period as both support and resistance level will hold the price. This eventually pumps the new traders with false confidence which ultimately leads them to trade with big lots. And all of a sudden the market starts to move in favor the trend wiping out the profit of the novice traders.
Learn the perfect way to trade along with the market trend. Use the higher time frame data and learn the art of multiple time frame analysis to filter the false trading signals. Aim for the best possible trade and trade with low risk. Learn about trade management to avoid big losing trades.