Greed and fear is the worst enemy of the retail traders. Most of the time the retail traders execute profitable trades yet they fail to make money. They close their profitable trades too early and book a small portion of their investment. But the moment you close your trade too early is the very moment you kill the risk-reward ratio of the trade. You need to have the guts to keep your trade until it hit the potential stop loss or take profit level. If you don’t stick to your rules you will never become a successful trader. Always trade the market by maintaining specific sets of rules as it is one of the easiest ways to save your trading capital. The professional traders in Australia follow some special rules to maximize their profit. Let’s learn more about their secrets in the Forex market.
Scale your trade
You need to scale your trade to maximize your profit. The retail traders are always looking to hit a home run in the Forex market. But this, not your basketball game. You have to deploy your trading strategy to make a consistent profit. You need to scale your trade to maximize your profit. Let’s say you have one lot trade open. So instead of closing the trade, use the practical closing system. Close 0.5 lot and let the trade do its duty. But when you do this thing, make sure you use the trailing stop loss features of the market to maximize your profit. Never trade the market with big risk to maximize your profit. You have to trade this market with calculative risk. No matter what happens, you should not execute any trade with your emotions. Emotions and gut feelings have no place in the trading industry. You have to consider this factors as an unnecessary ingredient.
Keep yourself updated
You have to keep yourself tuned with the latest market news. Forex trading is one of the most sophisticated business in the world. The high impact news can change the course of your trade and invalidate any trade setup. You have to monitor your trade from time to time. But this doesn’t mean you will stare at your trading chart all day long. Just use the new data to assess your current position. If you don’t keep yourself updated with the latest market news, you might have to lose huge money from the profitable trade setups. Subscribe to newsletters so that you can get automated mail of the high impact news. Assessing the fundamental factors of the market is one of the easiest ways to manage your running trades. Based on the fundamental and technical data, you have to manage your running trade.
Use of trailing stop loss features
Trailing stop loss features is the best thing you can use to protect your profit. The new traders use this features without following any specific guidelines. But these features need to be used with the help of support and resistance level of the market. Instead of using the major support and resistance level, you can use the minor levels of the market to adjust your stop loss. But never place too tight stops as it will trigger your stop loss.
Stop being a trade addict
Getting addicted to Forex trading profession is very normal. People always look for the trading opportunity which eventually forces them to overtrade the market. You have controlled this urge or else you will end up by overtrading the market. You don’t have to execute too many orders to secure a decent profit from this market. Try to trade like the lions. You have waited patiently until you get the best possible trade setup. Assess the risk factors of the trade. Always remember to take some break from your trading career. We are a human being and we can’t trade 24 hours a day. Give yourself some time and follow an organized routine.