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Trading might be one of the most lucrative professions in the world but very few traders know the true art of the investment business. The amateur traders in the United Kingdom start their careers with the hope that trading business will change their life. But after trying to trade the real market for weeks, the truly realize the risk factors of this business. The majority of naïve traders blow up the trading account in less than 3 months. To protect your trading capital, you should develop a unique strategy that can help you to earn money with managed risk. This is where things become a little bit tricky. Naïve traders kill the profit factors to ensure the safety of their investment. The earnings become so low that trading doesn’t add any value.
So, how can we boost the profit factors without increasing the risk exposure? Though there are many ways, we are going to highlight some of the most efficient ways to boost your profit factors without taking too much risk.
Learn to use the price action signals
To boost profit, you need to learn about the price action trading strategy. Using an indicator based trading method is not going to work in the investment business. If you rely on the indicators, EAs and bots, you will be using wide stops for each trade. Thus you will be forced to reduce the lot size to trade the market with proper risk management. But if you educate yourself about the price action trading method, you are going to have a decent time at trading. With the help of the reliable candlestick patterns, you can easily use tight stops in each trade. Tight stops loss in the trade setup will help you to increase the lot size and thus the profit factors will increase to a great extent.
Trade with the premium tools
The highly-trained traders at Saxo always rely on professional tools. They never trade the market with the average trading platform since the price feed is not all accurate. A few seconds delay in fetching up the price feed results in a significant change in the candlestick patterns. So, if you trade the market with the help of the price action signals, you are not going to get any good results. Find a well-reputed broker and use their premium tools so that you don’t have to lose trades due to a faulty trading environment. Though you might find it hard, with some basic steps you can easily master this skill.
Trade the major news
To boost your profit in trading, you should start trading the major news. Novice traders always say news trading is very hard and it is one of the key reasons why people are blowing up the trading account. On the other hand, the skilled traders prefer to trade the news since the market becomes extremely volatile. By using market volatility, you will get a unique chance to earn more money. If you trade the ranging market, chances are high you won’t be able to make much profit. So, learn to analyze the major news and speculate the direction of the trend based on technical and fundamental data. Once you master this strategy, you will see the boost in your earnings.
Trade with discipline
Never forget about discipline in order to earn more money. You need to be strict with your discipline and only then will it be possible to make consistent profit from this market. Stop thinking like gamblers since they never consider the worst-case scenario. Forget the fact that you are making big trades just to improve your life. Consider yourself as a businessman and focus on your trading routine. At times, you might get frustrated with the trading result but that is normal. Learn from your mistakes and bring change to your routine to be a better trader.
This is a collaborative post.