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Anyone can be a trader, but to be a great financial trader takes more than a three-piece suit and investment capital. There is a sea of novice traders looking to join the ranks of great financial traders and take home the kind of profit that goes with that title; however, few of them attain the expected grade of being a great trader. In the trading world, winning traders or great financial traders are as rare as winning a million-dollar lottery ticket. However, with the right tactics, you can maneuver from being a novice trader to a great trader.
One of the apparent prerequisites of becoming a great trader is adequate education in financial markets, technical analysis, and fundamental economics. Of course, a forex demo account will be a tool to accompany these prerequisites. But, you will still find well-informed and educated individuals out there who don’t qualify to bear the name ‘great trader.’
The critical difference between being a novice trader and a great trader is having the right tactics. You might have an education from top learning institutions and a trading demo account from best forex platforms, but still not make it to the top. Try and master the following five tactics and you’ll get a genuine shot at being a great trader.
1. Research and Analysis
A critical fundamental to trading success is the ability to do quality research. Carry out detailed research and collect the relevant information that may have a particular impact on the market. Researching market information, that is both economic information and information in the form of price and trading action is an effective way to adapt and approach the market.
On the other hand, analyzing market information is essential in making you identify, understand, and use trends applied to price action for specific charts and the market as a whole. Moreover, analyzing market and spot patterns is necessary for determining technical trading approaches.
2. Adapt your market analysis to the volatile market conditions
Over time as you will be using your forex demo account before getting your actual account, there is a likelihood of you ‘tuning’ your account to personal trading tactics, analysis, and strategies. Indeed, that is a good thing to start with as a novice trader.
The forex market keeps on changing in terms of prices due to many factors. Therefore, you always have to be ready for any changes in the market. It is, therefore, a good thing to always be prepared to adapt your analysis and strategies to the current market situation. Through that, you’ll never struggle through any market condition.
3. Stay in the game
Regardless of the industry one is in, they always face valleys and peaks at some point in their career. That’s not different in the trading world, as a full-time trader will always be met with significant losses and considerable gains. Staying in the game is a vital tactic that you should possess to become a great trader.
Of course, at some point, you’ll be excited due to your win and tempted to make a hasty trade particularly when there are favorable prices in the market. That’s human nature. However, you should always try to curb as with good days come bad days. For you to become a great trader, remember that both situations (win and loss) will last forever; therefore, staying in the game is a tactic that will help you grow.
4. Patience and discipline
It is a tactic or quality that you need in abundance to become a great trader. When you are disciplined and patient, you’ll know how to handle yourself different trading seasons. That is, what to do when it is a high season or low season
5. Record keeping
A great trader learns from their past trading mistakes. It is a habit that gives you an opportunity to become better and improve on cases you made mistakes. With a trading journal and a trading demo account, you can keep all the records of all the trades you make. The records will include aspects such as entry points and reasons for selling buying. Through this, you’ll know what caused the mistake you did for a specific trade. Regularly read through your records for you to see what you’re doing wrong and what you’re doing right.
The right tactics will always offer you the pathway of becoming successful. Continue to make the necessary effort and try to use these tactics to become a great financial trader.