The number retail forex trader in the Islamic community is increasing day by day. Forex trading is now very much popular among the Muslim umma since lots of reputed forex brokers are now offering swap free account to the Muslim trader. Trading the financial instrument using the commodity trading platform can be extremely difficult if you relatively new in this industry. Most of the retail traders in this industry fail to achieve success due to their lack of knowledge and insincerity. If you truly want to become a professional forex trader then you must have patience, sincerity, and a strong determination. The Muslim forex traders are always one step ahead of other traders since they are not trading addict. However, it’s true that some of the Muslim traders are trading addict. But in order to trade the forex market profitably, you can’t afford to become an addict. In this article, we will highlight some of the key criteria that the professional Muslim forex traders have in them. By analysis their skills and way trading you can improve your trading performance to a great extent.
Trading the forex market involves huge risk. If you truly want to master the art of forex trading then you need to have a strict trading discipline. Most of the professional Muslim forex traders always follow strict trading discipline. They always start their day very early in the morning and they also make sure that they are physically stable. If you are not physically stable then you can’t afford to make a good trading decision in the market. Always remember that disciplinary approach in the forex trading world allows the traders to execute their best possible trades in the market. They always know their prime goal and they know what they want to achieve. If things go wrong then they don’t just freak since they know their disciplinary approach will them to recover their losses in the financial industry. On the contrary, if you consider the life of rookie trader or struggling trader then you will find one thing in common in them. They all lead a very in disciplinary life and as a result of this, they hardly manage to take execute their trade in the live market with the proper logical decision.
Keep it simple and use candlestick formation
There are many different types of trading strategies out there in the world. Most of the rookie traders in the financial industry fail to achieve success due to their lack of concentration There are many Muslim forex trading communities which will help to identify the prevailing problem inside you. As a professional forex trader, you must keep things simple. Don’t mess up your trading chart with too many indicators. If you truly want to master the art of forex trading then you should also focus on price action trading strategy. In the eyes of trained professional price action trading is one of the best trading strategies out there in the world. Price action trading is nothing but the study of the raw price data in the market. As a price action trader, your price goal will be trading highly reliable price action trading signal in the market. It’s true that you will be confused with different candlestick formation in different time frames. But the more you will read the better you will become in price action trading.
Know your risk tolerance level
Most of the novice traders fail to make a decent amount of profit in the forex market due to their lack of knowledge and trading discipline. If you think that trading the forex market is the right job for you then ask help from other Muslim traders in the Muslim trading community. There are many successful Muslim traders trading the live currency rates in the market with the high level of accuracy. Whenever you are struggling with a problem make sure that you ask help from your seniors. Never risk more than 5% of your trading capital. There are many traders who often risk more than 10% but it’s still logical if they can afford to lose that much. Risk tolerance level varies from traders to trade. As a forex trader, you must know your risk tolerance level in terms of the dollar. Once you know risk tolerance level than the live currency rates in your Islamic trading account with that specified risked amount. Make sure that you are making more money on your winner than your losers. Never trade with the money that you can’t afford to lose.
Treat forex as business
This is the number one thing that you should realize before you quit your day job for forex trading. There are many new traders who jump into the forex industry only to make a profit. But at the end, they lose all their hard earned deposit and start gambling in this high leverage market. Research shows that out of 100 traders only 5 percent are making money. These 5 percent comprises of the smart investors who truly believe that forex is just like any other business. As a trader, you must accept a certain amount of loss and can expect to have all winning trades. Losing is just a part of your trading career. This is the hardest part that you need to learn to master the art of forex trading.
Can you tell any business that doesn’t involve any capital cost? The answer is pretty simple. No. You must spend a certain amount of money in order to run your business properly and in forex losing trades are the capital cost of trading business. So what should you do in order to make a profit even after taking series of loss? Professional traders always use strict money management rules in forex trading. This allows them to have more losing trades than their winner. They make sure that their winner is very big compared to their losing trades. Trading the financial instrument with excessive risk is just an immature act. You need to learn how to manage your trade efficiently so that losing trades doesn’t blow things up.