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 be able to 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 critical factors and learn to take rational steps. Only then you should be able to develop yourself as a successful trader.

Economic factors

Professional traders are extremely careful with the trade execution process. They always evaluate the news data to find critical conditions of the market. For instance, if you take the trades during the ECB press conference, you should not be expecting that you will make a big profit. You are preparing yourself to deal with heavy slippage. That’s why many professional traders avoid taking the trades 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. Without knowing about the news release timing, it is going to be a tough task to manage your risk profile. 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 the fact that the trends in the market can change without any prior notice. So, to be good at trading, you must learn to identify the major reversals in the market. Without having strong analytical knowledge about the market, it is going to be a very tough task to make significant progress in your life. Learn to find the best possible way to spot the major reversals in the trend. As you become good at spotting the key 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 major 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 major 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 be able to 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 that will keep the stress level low at trading.

Lee Hogan

Gamer. Twitter fan. Unapologetic analyst. Award-winning beeraholic. Subtly charming explorer. Cyclist, follower of Christ, drummer, Saul Bass fan and collaborator. Operating at the nexus of simplicity and elegance to save the world from bad design. Concept is the foundation of everything else.

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