Why itís so hard to Become a Successful Trader
Trading the financial instrument is gaining huge popularity in nowadays. Previously trading the live assets in the financial market was only limited to the novice traders but due to recent advancement in technology the normal people like us can access to the online trading world and execute orders in the market in their high-leverage trading account. Most of the novice traders in the financial industry consider forex trading as a gets rich quick scheme. They simply think that they will become a rich person within a few days. But when it comes to real life trading the concept turns out to be false and the novice traders incur heavy losses in the market. In this article, we will discuss why it is so hard to become profitable traders in the financial world.
Lack of knowledge: There is no other alternative other than acquiring a solid knowledge to be a successful person in the target niche. If you are trading the live assets in the market and want to lead your life by trading than its highly imperative that you know how to trade the market properly. As a trader, you should have a very clear insight into the financial industry. Unlike the novice traders, the professional traders spend a huge amount of time in learning the basics of the market since they knew that in order to survive in the financial market, in the long run, itís highly imperative to have a clear knowledge about the financial sectors. The best way to acquire knowledge in the financial sector is by accessing the online resources and reading regular articles on forex.
Not having a solid strategy: If you look at the professional traders than you will notice that every single of them are trading the live assets in the market with a valid trading strategy. On the contrary, the novice traders in the forex trading industry tend to trade the market without having any solid plans in the market. If you truly want to become professional traders in the financial market then you should definitely trade the live assets with a proper strategy. Most of the new traders in the financial market tends to use indicator based trading strategy but as a trader, you should know that indicator based trading strategy doesnít work well in the market. Even there are some novice traders in the market who often mess up their trading charts in the market by using too many indicators. If you prefer to use the indicators in the market then make sure that you use only one or two indicators in the market. But while using the indicators learn the different functions of the indicators in order to filter the best possible signals in the market.
Money management: Money management is considered to be the most vital element in forex trading. If you see the professional tradersí community than you will see that every single one of them is suing strict risk management factors in the financial market to trade the live assets. Most of the novice traders think that money management is all about risking 2 percent in a single trade but in reality, this is not the fact. If you execute more than 5 trades in a single day than risking 2 percent per trade will expose 10 percent of trading capital in the financial market. So this is not risk management at all. So while you trade the live assets make sure that you donít execute more than three trades in a single day since it will greatly reduce the risk exposure in the market. To be precise you should not risk more than 2 percent in any single day.
In summary, trading the financial instrument can give you financial freedom provided that you have mastered the art of trading. If you truly want to become professional traders in the financial market then making sure that you donít risk more than 2 percent of account capital in a single day. As novice traders, you should develop a strong basic in the financial sectors. Before trading the live assets with real money make sure that you have developed a valid trading strategy. Once you have developed a solid system in the market try to test them in demo trading environment.