The new investors in the CFD trading industry always think making a big investment is the only way to become a profitable trader. After losing a few trades, they are always blaming the market and the size of their trading capital. But if you do the math properly, you should be able to find some simple techniques to trade with a small trading account. The size of the investment has nothing to do with your profit factor. You need to be strategic about your actions and only then you can expect to trade like a pro trader even in a small trading account.
In this post, we will share some amazing techniques by which you can master the art of trading in a standard way. Go through this article, if you truly want to change your life.
Develop your basic skills
The first thing that you need to consider is your basic knowledge. Without having the basic skills, you won’t be able to do the perfect market analysis. Many novice traders start taking the trades without having sound knowledge about the support and resistance level. But support and resistance levels are the most important catalysts in the trade execution process. So, if you want to protect your capital, you must learn to find the perfect trade signals based on the support and resistance level.
Learn about the market
Before you start investing a big amount of money, you need to know about the market. Though the CFD market in Dubai is extremely popular, still you have a lot to learn. For instance, you need to know about the key difference between the major and minor currency pairs’ price movements. As a new trader, you should only take trades in the major currency pairs. Once you become skilled at analyzing the critical market data, you will realize why it is better to learn the art of trading with the major currency pairs.
Trade with the trend
As a professional trader, you will be taking trades with the major trend only. If you invest a small amount of money, there is no way you should trade against the trend. By taking the trades with the major trend, you can reduce the risk exposure significantly. Most importantly, you will become more confident with your actions and this will improve your decision-making ability. To find the long-term existing trend, analyze the market data in the higher timeframe only. Avoid taking trades in the lower time frame since it will make things worse and you will make many silly mistakes.
Learn about the price action trading strategy
To trade with a small trading account, you must learn to manage the risk exposure professionally. Try to evaluate the risk profile strategically and learn to deal with the candlestick patterns. As you learn to manage the trade signals with the help of the price action confirmation signals, you should be able to manage your risk factor in a standard way. Try to follow use the paper trading account to develop your price action trading skills. Once you become comfortable with the price action trading strategy, you should have zero problems with the size of the trading account. Moreover, you can trade with a big lot without taking a high risk since the price action confirmation signals will allow you to use a tight stop loss.
Trade with discipline
Professional traders always give priority to discipline. They never break the rules even though they have a large amount of capital. To protect your small trading account, you must learn to trade like a professional trader. Study the portfolio of elite traders and see how they are taking trades. Develop a strategic routine so that you don’t have to take random trades in the market.