Becoming a millionaire in the investment world is a very challenging task. You have to push things to the next level and gain control over your emotions. Those who think that they have mastered the art of trading and take advantage of the leverage to turn a small trading account in a million-dollar has a lot to learn. Trading has become very popular in Singapore. People want to master trading because they know top brokers like Saxo are offering the perfect environment to trade. But having the trading environment is not enough to ensure the profit factors.
To become a millionaire, you have to follow some very important steps. Even if you follow these steps it might take years to achieve your goal.
Think like the millionaire
You need to think like the millionaires and only then you will be able to make some serious profit from this market. The top traders in the world don’t think about the winning trades. Rather, they are biased about the losing orders because they know they have faults to fix. On the other hand, novice traders are always thinking about the winners. As a result of this, they constantly increase the risk exposure to boost the profit. So, get rid of the profit factors from your mind and start thinking about fixing the faults.
Learn to compound your profit
Learning to compound the profit at trading is the most critical part of becoming a millionaire. Things might seem a little bit complicated but once you learn to reinvest the profit in the Forex trading business, you can scale up the lot size. But this should be done in a very natural way. Abnormal growth in the equity curve usually results in a big loss and forces the traders to quit trading. No matter how you scale the trade, the maximum risk that you should take in each trade should never exceed 3%. If it does, you are breaking the most common rules of money management.
Focus on the trailing stops
The use of trailing stops can boost up the profit to a great extent. The rookies are always losing money since they don’t have the skills to use the trailing stops professionally. But it is not that hard as it seems. Having a fair knowledge about the minor support and resistance level can help you to learn the art of trailing stops. Some of you might use the trailing stops by using some fixed percentage rule. But by doing so, you may kill the risk to reward ratio. Unless you are familiar with these features, you should experience different types of trailing stops with real money.
Use the leverage efficiently
The only way you can become a millionaire trader is by effectively using the leverage. The majority of traders don’t know the perfect way to take the trades. They are breaking the rules and trying to earn huge profits. At times you might get confused by using the low leverage account as it will limit the profit. But the first rule of becoming a millionaire trader is to reduce the risk exposure. Increasing the risk in each trade is not going to push yourself to the next level. It will make the trading journey much more complicated and you will lose money most of the time.
Try to trade the news
You must news trade to become a rich trader. News is the prime catalyst for market volatility. Unless you follow the basic protocols of the news trading method, it will be tough to make some serious changes to your trading model. Once you become good at analyzing the price details along with the news, you can feel the change in your confidence level. So, master fundamental analysis from the start of your career.