Everyone wants to become successful in spread betting profession. But sadly only 5% of the traders are able to make consistent profit in this market. If you try to find the key reason for losing money in spread betting, it won’t take much time. Majority of the traders are losing money due to lack of knowledge and discipline. They are always trading the market with emotions and gut feelings. At times these things can help you to win some big trades but if you consider the long-term scenario, you are just making a big mistake. Study the professional traders in the United Kingdom and you will understand the perfect way to trade the live asset. Let’s learn about four essential things which you need to know to become a successful trader.
We all talk about technical analysis. People are always busy to find great trades by using the technical data of the market. But just have a look at the experienced traders. They never execute any trade without doing the fundamental analysis. Fundamental analysis is often considered to be the easiest way to find the best trades in the market. You might have very little knowledge about economics but still, you can master the proper art of fundamental analysis. Some experienced traders often consider it as the most powerful price driving catalyst in the market. So never rely on the technical data only. Try to develop a balanced trading strategy using the fundamental and technical analysis.
Key swings of the market
Do you know the proper way to trade the market? Do you think a complex trading system will help you to make tons of money? The simple answer is NO. If you truly know what is spread betting, you will understand the importance of the simple trading system. Learn about the support and resistance level trading. In order to find the key support and resistance level in the market, you need to identify the key swings of the market. The novice traders always use the lower time frame thus never find the key swing points. You need to use the daily or weekly time frame or else it will be really hard to avoid the losing trades. Higher time frame trading is extremely profitable and it allows the traders to trade with high-risk reward ratio. Trading the market with high-risk reward ratio is very important. It will help to recover your losing trades very easily.
Importance of money management
Money management is often considered as the most important element in the Forex market. It allows the traders to deal with their losing trades in a very effective way. You need to ensure you winners are always bigger than your losers. By following this simple principle you can significantly improve your trading performance. At times you might have to face more than five losing trades but this doesn’t mean your trading system is not working. You need to assess your trading performance monthly. Never focus on the lower time frame data as it will make trading difficult.
Trade with the reputed broker
Trading the market with a reputed broker is very crucial. If you trade the market with a low-end broker, you might be able to save some money but you will never get quality trading environment. You need to ensure you have the best trading platform and environment. The low-end broker will not give you safety for your investment. So try to find the regulated broker and know their terms and conditions. Invest a small amount of money and see how things go. If you feel satisfied with their service, you can get fully invested and trade the market with managed risk. Never comprise the quality of your trading environment to cut down your trading cost.