Professional traders are very good at managing their trades. They never look for the big gains rather they focus on the quality trade executions. On the contrary, novice traders always look for the big gains and execute their trades without assessing the quality of the trade setups. Soon they start facing trouble and quit trading. To become good at trading, you have to follow some strategic rules and take the trades with extreme caution.
Though you can follow many rules, we are will highlight the top four rules which you must maintain to succeed in the CFD trading market. Without any delay, let’s dive into the details.
Trade with logic
Emotions have no place in the CFD trading industry. If you think that you can make a big profit by using the emotional approach, you are making a big mistake. To succeed in the retail trading industry, you must learn to find the trade signals based on logic. It might take a while to understand the technical details of the market but once you get skilled, you will never rely on emotions.
Some of you might become emotional after winning few trades in a row. Thus you will break the rules and expect to earn a huge amount of money. But such an approach will force you to trade with big lots. Eventually, you will break the basic rules and impose a great threat to your trading career.
Trade with the best broker
You must learn to find the best broker in the market. It’s true, CFD trading in Dubai is a very popular business, and still few traders know the proper way to trade the market. To ensure consistent profit from this market, you must learn to use robust tools. So, chose a premium broker like Saxo and try to execute the trades with low risk.
Some of you might think that the high-end brokers impose heavy fees on the retail traders. But if you carefully assess the pricing structure of the top-class broker, you will notice that they always offer optimized trading conditions at low cost. So, never trade the market with the low-end brokers even though they might offer you lucrative deals.
Trade with the trend
Being a CFD trader, you should always trade with the major trend. If you ignore the major trends in the market, you will keep on losing money. The novice traders often think that the reversal trading method is the best way to make a big profit from this market. But this is not all true. Reversal trading imposes a great threat to the trader’s career. Try to draw the trend line in the daily time frame and take the trades with low risk.
Never think the trend will stay forever. If you analyze the historic price movements of the trading instrument, you will notice the trend often gets changed. So, learn to identify the trend change in the market as it will make you more skilled in the trade execution process. Use the advanced indicators to improve your skills in finding the reversals in the market. And try to relate your technical data with fundamental analysis as it will significantly improve your decision-making skills.
Trade with low-risk exposure
Novice traders always start their trading career with a small account. They keep the risk factor low and abide by the basic rules of money management. But after losing a few trades in a row, they become restless and start trading with high risk. At times they manage to make a big profit but considering the long-term outcome, they are developing a very bad habit. Being a CFD trader, you should never risk more than 2% of your account balance.
Always trade the market with low risk as it will keep your mind stable. Moreover, you will be able to deal with the losing trades, and thus surviving in the CFD market will be much easier.
