Trading is nothing but dealing with probability factors theory. You have to use your technical and fundamental knowledge to find the most profitable trade setups. But even after doing all the hard work no one can escape from losing trades.
That makes trading often considered as the most complex business in the world. The problem is, most traders always look for shortcuts or ‘the holy grail’ of trading, which is a wrong mind set. That’s why many retail traders have quitted trading after the failure to find the Holy Grail in the Forex market. To be honest there is no holy grail in the Forex market.
Every business in this world has to go through ups and downs due to different geopolitical incidents. Similarly, in Forex trading, you will always have to prepare for the unexpected incidents. If you always look for profitable trades, it won’t take much time to blow your trading account.
As we have set things straight, let’s learn how we can deal with the unexpected events in the retail trading industry.
Never trade to win trades
The new traders are placing trades to win a big sum of money. They execute their orders with a big hope. But when things go wrong they become emotional and start making mistake. That’s why most traders lose money.
For that very reason, professional traders always trade with zero expectations. You have to trade with such money which you can afford to lose.
Even if you use protective stop loss you might lose your trading capital due to an unexpected incident. For instance, during the Brexit, even many retail traders have lost their trading capital. Though such event is very rare yet you can protect yourself from such events.
Prior to such news release, you have to prepare yourself. Stop trading with a big lot and use very low leverage. Leverage trading can be extremely dangerous in such market conditions. Always trade this market with low-risk exposure since it’s the only way to save yourself from the wild swings of the market.
Never trade with automated software
The retail traders love to trade this market with EAs and bots. After buying the most expensive software in the market the try to double their investment. To be honest with you, this is the recipe for disaster.
If you want long term success, you need to hone your trading skills. You need to make trading decisions yourself; you need to place trade manually in your online trading account.
The manual trading system is the best trading system in the world since it allows you to assess the sentiment of the market. EAs and bots can help you to do the technical and fundamental analysis, but it will never do the sentiment analysis. Without doing the sentiment analysis, it is almost impossible to make a decent profit from this market.
So learn to trade the market with a manual trading strategy. Use a simple trading system which will help you to place a trade at the key support and resistance level. If needed, take some professional course to understand the market better.
Importance of professional trading network
Being an active currency trader you need to join the professional trading network. If you don’t keep yourself updated with the latest market news, it will be hard for you to make a profit. The market is dynamic in nature and you need to learn more about the high impact news.
That said, you need to be an active member of the social trading community. Even if they miss any important announcement they can easily enlighten themselves from the comments of other expert traders.
Trading is just like an art. No one can really teach you how to trade this market. You have to work hard and find a solution to deal with this market.
Things might sound a little bit complex but there is nothing to worry. You can easily use the demo accounts and develop strong trading skills. But when you demo trade the market, you have to take things very seriously.
As a retail trader, you have to follow strict discipline or else you will be losing money just like the 95% of the traders. Focus on your key discipline and trade with confidence.