Every financial market trader longs to make bigger and bigger profits to an extent that they become financially independent. Mark Hampton, a senior financial analyst at Olsson Capital confirms that in the real sense, it is possible to make very huge profits from financial market trading, despite the high risk involved. You can get to earn as much as what you see in some of those trading advertisement videos where traders make millions per day and you cannot seem to get your head out of the thought of it being you.
Actually, that can be you! You only have to learn some few tips and you are good to go. Below are few tips of advice to help you grow your trading profits:
Your profits will always be proportional to your investment
In financial markets trading, the lot size of every trade will be determined by your account balance. It is always advisable that you maintain a free margin of above 50% as a way of managing the trading risks. The larger the free margin, the more you can hold trades since at times the trades may get too much into the negative before moving in your favour.
Therefore, with a small investment amount, your trading margin will always be limited and you can only place few trades with small lot sizes and since the profits are a multiple of the lost sizes, you will end up making smaller profits.
If you invest $50 into Forex trading, for example, you cannot compare yourself to a trader who has invested $1000. The trader with $1000 can place trades of bigger lot sizes and also place more trades that you can. Therefore, the trader with an investment of $1000 will definitely make bigger profits provided that he does his predictions correctly.
Always be updated with events happening around the globe
In financial markets, you have to be updated about what is going on around the world. Remember you are not just trading your local currency; you are trading even the foreign currencies and you will have to be up to date with the things that are affecting the economies of those foreign currencies so as to be able to predict the market price movements correctly.
More so, you should be aware of all the major economic events taking place around the world so that the news releases do not catch you off guard. News can be very bad if they catch you unawares. It is usually not even advisable to trade news unless you have a killer strategy for them because they end up messing accounts.
Never be in a hurry to place a trade
Before placing any trade, you should sit down and get all the facts straight. There must be a very concrete reason as to why you place a specific trade. It should be after doing a thorough technical and fundamental analysis or after receiving a trading signal from a trusted source or through social trading like copy trading.
A trade without basis of being placed will always be at a higher risk of ending up as a loss. That is why most trades that are normally placed for revenging or out of greed end up becoming losses. You should always ensure that you have a trading strategy and that no trade is placed outside that strategy. Just be disciplined enough to follow all the rules of your trading strategy.
Look for help if you don’t trust yourself
If you feel you can’t trade profitably, you can ask for help from experienced traders or even from your personal account manager. You can also sign up with professional trading signal providers so that they can be giving the signals to trade. However, you have to test the signals for some time first in a demo account before going ahead to use them in your real trading.
You could also choose to use social trading strategies like copy trading and mirror trading.
But you have to choose the traders from whom you copy from very wisely. The traders should have a proven record of success. The more successful the trader from whom you copy or mirror trades from, the more the probability that the trades will end up being profitable. In most cases, the traders will have their trading history accessible and you can be able to go through it to gauge their success and decide if to copy trades from them or not.