Traders in Forex do not know how to plan their trades. Planning does not mean you are going to analyze the trend and the volatility and set a strategy. It also means you need to look at your bank account and plan your strategy. If you are broke but you want to place a big trade, that is not a good plan at all. You need to plan depending on the financial conditions. Most traders ignore this important part and they develop a strategy. This article will tell you why you need to plan the strategies depending on your own financial conditions.
Planning makes your trade perfect
The new Singaporean traders don’t know how to plan the perfect trades. They simply place trades with emotions and lose a significant portion of their investment. So how do learn about planning to trade a perfect trade? First of all, start to trade the market with the demo accounts. It will help to understand the nature of this market without losing any real money. Making money in demo account for three consecutive months is really hard. Once you start making consistent profit in the demo accounts, you will slowly understand the importance of a trading plan.
Smartly analyze the chart
Chart analysis is one of the most difficult tasks in the Forex market. New traders don’t even know how to perform the proper market analysis. Try to understand the premium tools available in your trading platform. It will help you to execute a trade with an extreme level of precision. Forget about the low-quality trade setups and focus on daily time frame analysis. At times you should also take some break from your trading professions. Start to analyze the chart with a fresh mindset as it will help you to make a better decision.
Don’t trust low-end brokers
They will always try to get as much money as they can from your account. Remember they also make the profit when you lose the trades. They are always making money from your investment and the more money comes out of your account, the more profit they can make. If you have 10,000 dollars in your bank account and you have opened with only 10 dollars in Forex, the brokers will always try to make you invest more. They know you cannot manage the money and will lose it. Even if you are in good conditions, do not invest much money in Forex without knowing the risks and developing your skills. Do not listen to their offers. If they give you 100 dollar bonus, you will find the need to invest 1000 dollars with them to withdraw the bonuses. They have many conditions and that is why you need to plan the strategy depending on your finance conditions. However, if you trade with Saxo, you will always get the best advice from them. They want their client to make a consistent profit since they don’t trade against their clients.
Take risks depending on your account
The professional trader can take big risks because of their money in their account. When the novice trader has only 10 dollars into the account, they cannot place 1000 of dollars trade and not think to lose the money. Pros know they will make other trades from where the profit will come and they will have no losses. You cannot use their strategy because their strategy has big risks. You can only follow them but when you are trading, plan your trades depending on your account.
If you are uncertain, do not trade
There are many volatilities that look good but you do not know if they can give you profit. The best way to manage them is by not trading. You will find thousands of volatilities but to save the capital, you need to work hard. It is better not to trade in uncertain trends.