Critical factors affecting the performance of a trader
Lee Hogan Improving your trading performance in the retail trading business is a very tough task. Most retail traders reach a saturation point and fail to focus on their improvement. You must learn to deal with such saturation points to become good at trading. It would help if you made significant progress once you found a simple way to deal with such critical factors.
A few critical factors affect the performance of a trader. You must learn about those essential factors and take reasonable steps to succeed. Only then should you be able to develop yourself as a successful trader.
Economic factors
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 how to use the economic calendar to find the best possible trade signals in the market. Without knowing the news release timing, managing your risk profile will be challenging. If necessary, 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. However, 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, making substantial progress in your life will be tough. taskrn 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 more confident. Thus, you can trade like the top traders at Saxo Bank. Work hard and learn more about trends to become a better trader.
Never think you won’t lose money because you take the trades with the primary trend. The trends often change due to high-impact news releases. 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 making a profit and the market will never change, you are taking things incorrectly. It would help if you kept revising your trading strategy based on the market’s volatility. So, what are the key factors that affect the market’s volatility? 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. Thus, we can better sync with the market change.
Change in your lifestyle.
As you grow old, certain things will change in your life, and you can do nothing about it. To make a consistent profit, you must address the change in your lifestyle. As a trader, you must 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. Selecting a more conservative trading method to keep the stress level low at trading would be better.