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Trading is often considered as the most lucrative profession in today’s world. Many people in the United Kingdom are leading their dream life based on this profession. Since most of the high-class brokers like ETX Capital are now offering high leverage trading accounts to the retails clients, making money with a small amount of trading capital is has become extremely easy. It’s true that potential profit in the Forex market is sky high but in order to become a profitable trader, you need to have precise knowledge of this industry. Many retail traders have blown their trading account in Forex market due to their lack of trading knowledge. They have placed trades based on their emotions and at times they have made a huge amount of money. But in the long run, most of them have quit trading. To become a successful trader in Forex market you need to have precise knowledge in three different sections.
Technical analysis
We all know what technical analysis is. It allows the traders to find profitable trade setups in favor of the long-term market trend. Most novice traders place their trade based on their technical analysis result. But before you do the technical analysis you need to understand the importance of higher time frame data. For instance, if you trade the lower time frame data, you have to deal with lots of false trading signals. But when you start trading the higher time frame data you will see a dramatic improvement in your trading career. Most of the time the new traders don’t have enough patience to wait for quality trade setup. They simply start trading the lower time frame trading signal and loses a big amount of money. You need to learn how to stay on the sideline 99% of the time to become successful at trading.
Fundamental analysis
If you ask the professional UK trader, what is Forex trading, they will give you very precise answer. On other hand, if you ask the same question to the novice traders they will never give you a plain answer. They will beat around the bush and try to establish their success based on their words. They will talk big about technical analysis. But you will find one thing in common that no novice traders have precise knowledge of the fundamental sections. Understanding the fundamental factors in the Forex market is very crucial for your trading success. We all know that trend is your friend. Most of the time the pro-UK trader’s place trades in favor of the long-term market trend and secure decent profit. But in order to do that you need to learn the importance of high impact news release. If you don’t know the perfect way to assess the fundamental data, it will be really hard for you to assess the strength of the market trend. Learning the fundamental part of Forex market might seem a little hard but if you focus on the core concept it won’t take more than a month to get a clear idea of this section.
Sentiment analysis
Sentiment analysis is crucial to your trading success and this something that you can never learn. It will gradually develop deep inside you. Sometimes the successful traders consider it as their experience. At times you will see that many professional traders are waiting on the sideline even though they have the perfect trade setup. So why do they do so? This is because of the sentiment analysis. Every successful trader knows very well how to assess the sentiment of the market. If you don’t know the perfect way to assess the market sentiment, you will never be able to trade this market with confidence. Always remember that sentiment analysis is often considered as the most powerful form of market analysis. As a full-time trader, you should use the three major form of market analysis to find the best possible trade setups.
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