Critical factors affecting the performance of a trader
Improving your trading performance in the retail trading business is a very tough task. Most of the retail traders reach a saturation point and fail to focus on their improvement. To become good at trading, you must learn to deal with such saturation points. Once you find a simple way to deal with such critical factors, you should make significant progress in your life.
Few critical factors affect the performance of a trader. If you want to succeed, you must learn about those essential factors and take reasonable steps. Only then should you be able to develop yourself as a successful trader.
Professional traders are cautious with the trade execution process. They continually evaluate the news data to find critical conditions of the market. For instance, you should not expect to make a big profit if you take the trades during the ECB press conference. You are preparing yourself to deal with heavy slippage. That’s why many professional traders avoid taking the transactions during the ECB press conference as they know it can cause them big trouble.
You need to learn about the use of the economic calendar to find the best possible trade signals in the market. It will be challenging to manage your risk profile without knowing about the news release timing. If required, move back to the demo account and see how the news factors affect the market trend.
Change in the trend
People love to trade with the trend. But the rookie traders often forget that the trends in the market can change without any prior notice. So, to be good at trading, you must learn to identify the significant reversals in the market. Without solid analytical knowledge about the market, it will be a very tough task to make substantial progress in your life. Learn to find the best possible way to spot the significant reversals in the trend. As you become good at spotting the critical reversals in the market, you will become much confident. Thus you can trade like the top traders at Saxo Bank. Work hard and learn more about the change in the trend to become a better trader.
Never think that you won’t lose any money just because you are taking the trades with the primary trend. The trends are often changed due to the high-impact news release. So, if you ignore the importance of fundamental analysis, you will never know what it takes to deal with the significant trend change in the market.
The volatility of the market
The market volatility often changes due to different economic factors. If you think you can keep on making a profit and the market will never change, you are taking things in the wrong way. You have to keep on revising your trading strategy based on the volatility of the market. So, what are the key factors that affect the volatility of the market? We need to start with the popularity of the currency. After that, we need to check the economic growth factors. Based on that, we should determine whether the currency pair has changed its price pattern or not. And thus, we can sync better with the market change.
Change in your lifestyle
To make a consistent profit, you must address the change in your lifestyle. As you grow old, certain things will change in your life, and there is nothing you can do about it. Being a trader, you need to adjust your trading method based on your lifestyle. For instance, you might be a high-frequency trader at an early age, but it might not be a suitable system when you become old. It would be better to select a more conservative trading method to keep the stress level low at trading.