Four cardinal rules every trader should know


New Member
The majority of the retail traders are losing money in the Forex market. The new investors don’t really understand how to trade the Forex market with managed risk. People often think trading is the most lucrative profession and they can earn huge amount of money even knowing the details of this market. In reality, this is the most sophisticated business in the world. You need to educate yourself properly to have a clear knowledge of this industry. Though there are many different rules which you can follow today we will highlight the mostcrucial rules which every trader need to follow.

A clear concept of trading business
Those who have a very clear concept of the trading business knows very well how to trade the market with managed risk. Unlike the new traders, pro-UK traders are always taking the managed risk. In order to survive in this industry, you must know technical and fundamental analysis. Once you have a clear idea on this two sectors, you will slowly begin to understand the sentiment of the market. Sentiment analysis is one of the most advanced forms of Forex market analysis. Unless you know to understand this three major form of market analysis, you can never become a profitable trader.

Developing a perfect strategy
This is where most of the retail traders fail. You should never trade the real market unless you have extensive demo trading experience. Demo trading will give you the perfect platform to master the art of trading. You don’t have to lose any real money in the demo environment since you will be trading the market with the virtual dollar. Some of you might think demo trading is not that interesting. To be honest, this statement is very true but you must trade the market with a virtual dollar for a few months. It will help you to develop a perfect trading system. Most importantly you will have a strong mentality to execute a trade in extreme volatile condition. Becoming a profitable trader in the exchange traded funds industry is hard. It requires strong determination and dedication to establish your skills.

Relaxation in Forex trading profession
Those who trade with their savings can never become a successful trader. All the successful traders in the United Kingdom trade with their idle cash. You need to ensure a stress-free trading environment to protect your investment. Protecting your trading capital under extreme stress is nearly impossible. There is no need to become an aggressive trader as you can easily earn money with managed risk. The market will be always there but it’s you who will run out of cash. So how do you avoid such situations? The simple answer is proper risk management. Never trade with money that you can’t afford to lose. Consider this profession as your alternative source of income and you can easily become a profitable trader.

Learning to lose trades
This is the most crucial thing you need to learn as a currency trader. If you think you can make a huge profit without losing any trade you are making a big mistake. Losing trades are nothing but a part of your trading career. The pro-UK traders always trade the market with managed risk and they never risk a significant portion of their investment. If you want to change your lifestyle you must learn to trade the market with low-risk exposure. Even after doing all the analysis perfectly you will have to lose trades on regular basis. But this is not the end of your career. You have to stick to your rules and place trade according to your strategy. At times you might become frustrated but this is nothing but an obstacle to your success. Try to find the mistakes in your trading system and fix your problems. Believe in yourself and work hard to develop yourself as a profitable trader. Last but not least, never trade with money you can’t afford to lose.