Making money in the online trading world is a hard task. Everyone wants to become successful in the online trading world but only 5 % of the traders are able to make money consistently. The remaining 95% of the traders lose all their money within the first six months. To be precise the rest of the traders are struggling hard to save their trading investment. People in Australia are very much concern about their investment thus they trade with low risk. Placing your trade and making consistent profit requires a decent knowledge of the financial market. Jumping into this volatile market without having any precise trading strategy will cost your whole investment. In fact, the professional Aussie traders are more concern about their investment rather than making a profit. In this article, we will discuss some amazing tips which will help you to save your hard earn investment in the online trading world.
Demo trade the market
Demo trading is one of the best ways to learn the art of trading. If you are looking to build your trading career in the online trading world then it’s better for you to start your trading career with a demo account. In the demo market, you will have access to all the financial instrument and you can easily trade the market with real-time market data. It’s true that you will never be able to withdraw the profit of demo account but this will also save you from losing real money. In fact, the experienced traders at Saxo also used their demo trading account to develop their trading skills at the initial stage. By using your demo trading account you can easily develop your own trading strategy and fix your weakness in the final market. But make sure that you demo trade the market very sincerely and learn from your mistake. If you don’t do so then you won’t be able to trade the real market seriously.
Keep everything simple
Making things complex is one of the most common mistakes of the novice traders. When you are trading CFD there is no need to use the complex trading system. Some traders often use too many indicators to trade the market. But if you know the use of one single indicator then it’s enough to filter the best possible trade setup. If possible learn price action trading strategy since it is one of the easiest ways to trade the market. All you need is clear knowledge about the support and resistance level along with the different forms of the Japanese candlestick pattern.
Avoid news trading
Most of the big loses occur during high impact news trading. Being a new participant of this industry you should never trade the volatile market without having any solid plan. Even the most experienced traders often get frustrated with extreme level of volatility. They simply don’t find any clear trading signal to execute their trade. But it’s always better to stay on the sideline rather than losing money with the unclear trading decision. However, if you want to trade the news then you need to learn multiple time frame analysis. This is one of the easiest ways to filter potential trade setup during high volatility. But still, it’s not for the novice traders since it takes years of trading experience to make a quick trading decision.
Never risk more than 1%
Some of you might say that losing 2% is good enough for the professional trader. But if you consider trading as your full-time profession then we will say that anything more than 1% is a huge risk. You should always consider this market and battle field. So it’s your duty to reduce your risk exposure level in every possible way even though you might be sure that the trade will go in favor of your decision. It’s better to make a small profit rather than losing our whole investment.