Becoming a professional commodity trader is a very tough task. If you do the research, you will notice the majority of the retail traders are losing money as they don’t have the basic knowledge. And when it comes to the commodity trading profession, the traders need to focus on long-term goals and trade this market with extreme discipline. Without following strict discipline in the investment business, the traders will keep on losing money and blow up the trading account within a short time.
So, is there any way by which you can become a professional trader? The simple answer is YES. Go through this article as we will give you some advanced tips which will allow you to trade this market in a better way.
Study the asset
Before you take any trade, you need to study the assets. The price movement in the commodity market is a bit different than currency pairs. If you do some research, you will realize trading in the commodity market is much harder as the price movement is not that high. So, you need to get yourself comfortable with the slow market, or else you will not do better at trading. Take your time and learn to evaluate the risk profile in a very strategic way. See how the market reacts to the critical support and resistance level. Once you become comfortable with the price movement of the trading instrument, you should be able to take the trades in the real market.
Curate a simple trading strategy
To become a professional trader, you should never rely on a complex trading strategy. Try to develop a simple trading strategy so that you can do well in the market. Unless you learn to curate a professional trading strategy, you will never succeed in the trading profession. Visit this link and get a professional demo account from Saxo so that you can do well in the trading profession. Once you become good at analyzing the important market variable, you should be able to develop a professional trading strategy. But develop your trading method in the demo trading account so that you don’t have to lose any money. Once you curate the trading strategy, you need to back-test the trading system.
Backtest your trading strategy
Back-testing your trading strategy is one of the most difficult tasks for novice traders. The novice traders think that they know a lot about this market. But after trading the market for few months they realize they have faults in their trading system. Before you jump into the real market, you should trade with your develop your trading method in the demo account. If you can make a consistent profit in the demo trading account for few months, you should consider the trading strategy as a valid one. If not, you need to revise your trading strategy again.
Study the major chart pattern
To make a big profit in the trading industry, you must study the major chart pattern. Analyzing the chart pattern is one of the most effective ways to make a big profit in this market. The traders often think that they don’t have to deal with the chart patterns. But if you trade without knowing anything about the major chart pattern, you will keep on losing money. Thus you will blame the market and loses a significant portion of your trading capital. The only way by which you can solve this problem is by following strategic actions. Learn about the important chart patterns and try to use them in your trading approach.
Trade with a very low risk
As a trader, you should always trade the market with low risk. If you fail to do the proper market analysis, you should not trade the market in an aggressive way. Learn to trade this market with 2% risk exposure as it will allow you to survive in the market. Never get confused with your actions since you don’t have any idea about the outcome of any trade.