There are many traders in the Forex market who do not set realistic profit return in their trading mindset. Just because Forex market is larger than a stock market does not mean all the money will come to you. This market is way more volatile than the stock market. Most of the time, traders only lose money in Forex and rarely wins. Losing is so common in Forex that is a way of saying that, traders need to lose to learn in Forex. Even the most famous traders in the Forex market loses their trades. If you know the percentage of traders that are successful in this highly volatile market, you will be surprised. Only 5% of traders are successful in the Forex market. If you look at the professional Aussie traders then you will notice that every single one of them is trading the live assets with an extreme level of discipline. Unlike the novice traders, the expert trades always trade with the reputed brokers like Saxo and follow proper risk management factors in every single trade.
High leverage trading account
Forex market provides the advantage of leverage to the traders. Leverage means you can trade big on the market even if you have a small account. An example can make you clear. You have 100 dollars in your account and you want to trade the market for a profit of 500 dollars then you can easily do this by using a high-leverage trading account offered by reputed broker like Saxo. Forex leverage will give you the advantage to trade the market, for your 100 dollars, as a trader like having 1000 dollars in your account. But leverage can also act like a double edge sword in the market. Most of the novice traders often blow their entire trading account by executing high lot size trade in the market. As a trader, it’s very obvious that you will often have some losing trades in the market. So make sure that you always aim for high-risk reward trade since it will allow you to lose more trade but yet keep you in the profitable side at the end of the month.
Expect return in trade
Many traders cannot distinguish Forex leverage and expected trade return and thus they execute high random trades in their trading platform. They try to trade big every time and it is very rare that they succeed. For this kind of traders, the Forex market is growing large every day. When you are a rational trader in the market, you have to trade on expected profit. Leverage can act as a double edge sword in the market. If you know how to use it properly then it will be the biggest blessings for you or else it will ruin your trading career slowly. So if you truly want to become a professional trader then you should learn more about the perfect use leverage and expected return from a certain trade in the market.
Do not wish that you will make 10,000 dollars profit in one day. Every trader will come running to you, there will be news channels everywhere. Forex market is volatile, you will even lose with your proven strategy. What you can do is to trade on expected return. If there is an opportunity to make a sure 40 dollars and make 50 dollars with a risk of losing 20 dollars, traders somehow always take the risk of winning 50 dollars. Most of them lose and lost 20 dollars in the trades. In your expected return, always go for the 40 dollars than losing 20 dollars in the market.
Conclusion: High leverage trading account is a blessing for the professional trader. If you know how to trade with high leverage then you can easily make a huge amount of money by using the market volatility. When you trade the market make sure that you are always looking for high-risk ratio trades. As a professional trader, you will always have some losing trades so don’t get frustrated with a couple of loss. Stay calm and trade with an extreme level of discipline to make a profit in this industry.