There are many key factors which you need to consider to become a successful trader. The new traders are always looking to win big trades but sadly they forget the statics of this market. Out of 100 traders, only 5 of retail traders are able to make profit consistently. So how do you become a member of this 5% group? To be honest there are no exact rules however if you can follow the basic guidelines things will become easy for you. You have to understand all the three major types of market analysis to become a successful trader. Today we will learn about five key factors which are often considered as the most vital element to becoming a successful trader.
Analyze the market trend
The traders often overlook the long-term prevailing trend. They are just trading the market without knowing the risk factors. But if you consider the experienced UK traders you will understand the importance of trend trading strategy. Instead of doing the market analysis in the 1hour time frame try to use the daily time frame. The daily time frame will always give you a better picture which will eventually make you a better trader. In the lower picture, you will always miss the key factors which are very easy to find in the higher time frame. So always analyze the higher time frame to find the perfect trend. Stick to the old rules of the investment industry.
Do the fundamental analysis
Do you really think the fundamental analysis is not required in order to become a successful trader? If so, you are making a big mistake. You need to trade the market in the higher time frame after doing the fundamental analysis. If you can assess the high impact news you can easily find the overall strength of the trend. In fact, the long-term existing trend can even get change during the event of high impact news release. So work smart and try to trade this market with proper fundamental analysis.
Trade with a reputed broker
The new traders might be thinking professional brokers is very expensive. But if you do some research you will be able to find much professional spread betting trading accounts. Unless you have access to the premium tools in the trading environment, it will be almost impossible for you to execute high-quality trades. The reputed broker will always ensure premium trading environment. Most importantly you will know your funds are the in the safe hands. If you trade with the unregulated broker you might even get scammed. So chose your broker wisely.
Develop a trading routine
You will have access to the online trading industry 24/5 but this doesn’t mean you will be trading all day long. You need to have a specific trading routine or else it will be almost impossible for you to make money consistently. At times you will have to deal with many unknown factors but if you master the art of trading in an organized way things will become easier for you. You should trade during specific trading hours and maintain a proper routine to earn consistent profit from this market.
Be a confidence trader
This is the most vital thing you need to have to become a profitable trader. Those who are relatively new to the trading industry might say there is no way you can earn huge profit from this market. This market is manipulated and you will always lose money. But this is absolutely wrong. You will have to face losing trades on regular basis, but this doesn’t mean you will not be able to lead a luxurious life funded by this profession. You need to develop a good level of confidence. Read a lot to develop your trading skills and this will eventually boost your confidence level. Maintain a proper routine to earn money consistently.