Tips for trading the different financial instrument successfully in the forex market
Nowadays Islamic forex trading is increasing day by day since most of the leading brokers are offering Islamic account for the retail traders. Trading the financial instrument in the Islamic trading account is perfectly halal for the Muslim community since the broker has compensated all the swap and interest factors from that account. To be precise they are simply charging a small fee for their provided service. Most of the brokers even don’t charge any commission to the traders and the service charge is taken from the spread of different currency pair. According to the theory of Islamic finance, traders are obliged to risk a certain portion of their account equity in order to declare the earning as halal. As a forex trader, you are always risking certain portion of your account equity and trying to make a decent profit by taking the best possible trade in the market. In this article, we will tell all the necessary steps to become a professional trader in the finance industry. Most of the novice traders fail to make a decent amount of profit by trading the financial instrument due to their lack of knowledge and trading discipline. On the contrary, the profession traders are making a consistent profit due to their strong determination, dedication, and strict trading discipline.
Consider forex as business
In Islam, any sort of gambling is completely haram. As a Muslim trader, you have the unique benefit in forex trading since you will not behave like other novice trader and try to make money through wild guess. In order to get a clear overview of the market next move, you must analysis all the technical and fundamental parameters. Most of the professional traders develop their trading strategy based on the fundamental and technical analysis. There are many different ways doing the technical analysis but you should stick to the basic principles of technical analysis. Most of the great trades are taken by using the key support and resistance level in the market. In Islam, there is no quick way of achieving success. You must have sincerity and strong passion before you can achieve something good in your life. Similarly, you can expect to make a huge amount of money from the very first day of your trading career. You should consider forex as business and continuously work hard to improve your trading skills. There is no another alternative other than gathering knowledge. Make sure you develop a strong reading habit and always try to remain up to date with the recent financial events of the world economy.
There are many traders in the financial industry who takes dozens of trades in a single day. They think that the more they will trade the more money they will make. But in reality, the finance world doesn’t work like this. In the eyes of trained professional trading, the forex market is pretty much similar to the life of a sniper. You can’t afford to take unnecessary risk in the market. Make sure that you have your patience and execute a quality trade in the market only. If you truly want to become a successful trader then you must rely on quality trade execution rather than quantity. The expert forex traders hardly take two to three trades in the market. Before you take any trade in the market make sure that you have logical reasons behind the execution of your trade.
Proper risk management factors
Trading the forex market requires an extreme level of trading discipline. Even in the Islam, it is clearly written to follow specific rules in every single business. When you trade the forex market make sure that you follow strict money management rules. As a forex trader, you should not invest your whole savings in the forex industry. Use proper risk reward ratio in every single trade so that your winners are always bigger than your losers. Most of the novice traders cut their profitable trades early in the market whereas the wait for their losers to grow big. In order to remain profitable in the forex market, you must follow proper risk management factors. In the eyes of trained professional money management is the only Holy Grail that a trader can have in his trading career.
Peaceful trading environment
If you observe the life of a successful forex trader then you will easily notice that they all have a very peaceful trading environment. They always stay calm in danger because they know very precisely that quick decision is not going to solve their problem. As a professional forex trader, you must have a calm trading environment where you can do your technical and fundamental analysis very precisely without the influence of external factors.SO make sure that you have a separate trading room where you can access all of your trading material very easily. And if you incur few losses in the market leave your trading station and socialize with other people since this will greatly recover your emotional stress with a positive attitude.
Summary: Forex trading is a lucrative business which can offer you financial freedom if mastered properly. As a professional forex trader, you must have a strong trading foundation and consider trading as a business. Like any other business, you need to grow slow in the market and learn all the details of the financial market with the great level of accuracy. Always remember that there is no alternative other than strict trading discipline and proper foundation of the financial market to make profit consistently. And make sure that you not trading with the money that you can’t afford to lose.