Making a consistent profit in the retail trading industry is a very challenging task. You need two sets of skills to become a successful trader. First of all, you must understand how this market works. Secondly, you should follow strict discipline throughout your trading career. If you deviate from these two basic rules you are not going to make it in the spread betting industry. There are many things that you need to learn to trade the market successfully. The expert UK traders always follow some basic guidelines to save themselves from the wild swings of the market. Today we will give you discuss top five rules that you should always follow to maintain consistency.
Be a disciplined trader
Discipline will always come first when it comes to currency trading profession. Having access to the high leverage trading environment doesn’t mean you will be placing trades without following any risk management plan. If assess the trade history of the losers in Forex market you will be surprised to see that none of them are following discipline. They are overtrading the market and breaking the core rule of investment. They take a huge risk to secure big profit from this market. Make sure you are not doing the same mistake because if you do so, you are going to lose money.
Stick to your trading plan
Everyone has a trading strategy but very few can follow the system. We are a human being and we not programmed to embrace losing trades. Spread betting profession is such a task that you can never predict the price movement of the currency pairs with 100% accuracy. Losing trades are inevitable. But losing a few trades in a row doesn’t mean your system is not working. You have to stick to your trading plan regardless of the outcome of each trade. Always focus on high-quality trade setup and ignores the trades which are against the market trend.
Don’t make things complex
Trading is not all complex for the experienced traders. But the rookie traders always make things complex by using too many indicators and EAs in their spread betting platforms. But if you want to change your life you have to believe in the simple trading system. The complex trading strategy will never help you to become a successful trader. To be honest it will create massive confusion while placing the right trades. Try to simplify your trading system by using the demo accounts. Simple support and resistance level trading can help you to make consistent profit from this industry.
Stop following the crowd
The new traders often things that experts traders have magical powers. They are always right and making tons of money. But they are absolutely wrong. Even the most experienced professionals in the retail trading industry lose money on regular basis. The experienced traders are very good at managing their risk. They never take any unnecessary risk in the market. Even though the professional traders are making a consistent profit but this doesn’t mean you will be following the herd in the market. Every trader is unique and you have to consider this fact. Stop following other signals rather try to develop your own system.
Trade with managed risk
Risk management is the most crucial thing in the Forex market. If you truly believe trading is the right profession for you, you should never risk more than 2% of your account capital. Spread betting can be very challenging as you will have access to high leverage trading accounts. You need to learn the use market leverage since it will help you to minimize your risk factors. Instead of looking for heavy gain try to save your investment for the first few months. Use the demo trading accounts to learn how this market works. If needed take some professional training on spread betting so that you get a clear idea how this market works.