Everyone wants to secure their financial freedom so that they can enjoy their life to the full. People are always looking to diversify their source of income so that they can easily secure their financial stability. But finding an alternative source of income in the world of the financial crisis is extremely hard. However many people in Australia have considered Forex trading as their alternative source of income since it is one of the best places to make money. If you truly believe that trading is the right profession for you, you need to learn the basic rules of investing. If you trade this market with greed you are never going to become a profitable trader. Always remember without having a proper education in Forex market you are never going to become a profitable trader. Knowledge is power and you have to know the basic rules of investing to deal with your losing trades.
Never risk more than 2% of account capital
Majority of the trader is risking too much even though they are not sure about the market trade. When you place any trade you need to limit your risk exposure in every possible way. You might have the best trade setups in the market yet you should never risk more than 2% of your investment. The majority of the traders are taking more than 10% risk in every single trade. But do you really think you can make a profit by taking such huge risk? The pro-Aussie traders always say to limit the risk exposure so that they can easily save your investment.
Don’t place any trade based on other people opinion
No one in this world can give you the guarantee that a certain trade will hit the potential take profit level. Even the Aussie traders will never give you such guarantee. You need to understand the probability factors of the Forex trading industry. You need to learn to technical analysis part so that you can do the market analysis without depending on other traders. The novice traders often say buying professional trading signal is the perfect solution to become a rich person. But do you really think this will help you to secure your financial freedom? Even the most experienced traders often have to face a series of losing trades. Losing trades are inevitable and it’s better to lose money based on your own trading decision since you will learn something new.
Avoid trading the tops and bottom
The mistakes made by the novice traders are very common. They buy the market at the deep and sell at the top. But this is nothing but reversal trading. There is a saying in the Forex market, the trend is a friend. If you don’t follow the market trend it will be nearly impossible for you to deal with your losing trades. Try to learn the perfect use of Fibonacci retracement tools since it will help you to ride the long-term existing trend with an extreme level of accuracy. Instead of trading the lower time frame, focus on the higher time frame data to find a more reliable trading signal.
You need to trade in stress-free environment
As a full-time trader, you need to trade this market in a stress-free environment. If you place trade under mental stress chances are very high you will have more losing trades. The pro trader always says it’s better to wait on the sideline rather trade the market in mental stress. If you don’t use your rational logic it won’t take much time to lose your investment. Always focus on the key factors of the market. Never try to trade the minor support and resistance level. Make sure you are trading this market with confidence. Take some professional trading course to get a clear idea of this investment world and read a lot to learn more about this market.