Everyone wants to live a happy life without any financial crisis. But the world is such a place where you will have continuously compete against other people to earn your living. You might have a day job but do you really think that the amount of money which you earn as your salary is enough to support your family? The simple answer should be NO. Human wants are unlimited. But when it comes to spreading betting or Forex trading you can easily huge amounts of money just by trading the live assets. By becoming a professional trader you can easily secure your financial freedom and live your dream life. But do you really think that mastering the art of trading is an easy task? Most expert traders in the United Kingdom consider it a job for elite people. You have to maintain strict trading discipline throughout your trading career to make money on a regular basis. In this article, we will discuss some major elements that every trader should know.
Trading is all about probability
Most retail traders think that they will always win the trade. But in reality, losing trades are inevitable. No matter how hard you try and regardless of your trading knowledge, you will have to face some losing trades. For this very reason, expert traders in the United Kingdom often relate spread betting with the probability factor theory. If you can manage your trade in an efficient way then you can easily make money. But if you ever lose your trading discipline then you might even lose your entire trading capital.
Fundamental factors are the price-driving catalyst
Most retail traders love to trade based on their technical analysis skills. But fundamental analysis is often considered as the most vital element to becoming a successful trader in the Forex market. If you don’t learn about fundamental analysis then you will never be able to measure the strength of the market trend. If you are complexly new to this market then try the spread betting demo instead of risking your real money. Learn how different news data influence the price movement of the different currency pairs.
Simple trading system
Most retail traders think that without having a complex trading system they will never make any money spread betting. But all the top-class trader in the spread betting industry is making tons of money with a simple trading system. They know very well that success lies in simplicity. Instead of using different types of indicators in your trading system try to learn price action trading strategy. This is often referred to as the best way to trade the live market.
The simple 2% rule
Retail traders are always dreaming to make millions of dollars in profit. They use their high-leverage trading account to set big pip values in spread betting. But we all know that trading is all about probability. So no matter what happens you should never risk more than 2% of your account capital. However, some of the expert traders in the United Kingdom often risk 3-5% of their account balance. But you need to consider their trading knowledge and experience.
EAs and Bots
EAs and bots are getting your attractive from novice traders. But do you really think that you can change your life with the help of man-made software? The simple answer is NO. You need to learn manual trading to make a profit on a regular basis. The software will not do the sentiment analysis for you. It requires a human mind to assess the sentiment of the market.
So far we have discussed some of the most important ingredients in the trading industry. If you truly believe that this is the right profession for you then make sure that you have precise knowledge about the trading industry. Read the articles again and follow the advice very strictly.