Starting to trade the market is a very easy task. Just with some basic paperwork, you can easily open a trading account with the elite class broker. After getting access to the online trading industry, most of the new traders become aggressive to make more money. Some of them even use the high leverage trading account to maximize their profit factors. This is where most of the retail traders make a mistake in their trading career. Leverage is more like a double edge sword. If you fail to manage your risk exposure, it won’t take much time to blow up the trading account. You have to be extremely precise with your trade execution or else you are going to lose money like 95% of the traders.
Let’s learn some easy steps to trade the market with extreme level precision.
Trade with price action confirmation signal
There is saying in Forex market, the trend is your friend. The new traders don’t know the proper way to ride the market trend. Though there are many ways, the smart traders in the United Kingdom prefer to use simple price action trading strategy. Price action trading strategy is based on the different formations of the Japanese candlestick pattern. If you learn to trade the key support and resistance level with reliable price action confirmation signal, you can easily make a huge profit from this market.
Focus on the fundament factors
Fundamental factors are the most powerful price driving catalyst in the Forex market. The new traders often ignore the importance of fundamental analysis. But relying on the technical data is more like gambling. If you use a professional trading platform, you will notice a dedicated tab for the news update. It helps the retail traders to keep themselves updated with the latest market news. Things might seem a little bit complex at the initial stage but once you focus on the prime news, you can easily scale your trade and save your investment.
Learn multiple time frame analysis
Finding out the best trades is not so easy. The rookie traders often rely on the indicators reading to find the best trades. Though indicators are often considered as helping tools, they never work like multiple time frame analysis. If you manage to learn multiple time frame analysis, you can easily execute high-quality trades with an extreme level of precision. When you study the price chart in a different time frame, make sure you give priority to the higher time frame data. In lower time frame you will never get high-quality trade setups. Blend the analysis in a different time frame to filter out the best trades.
Use premium tools
To find the very best trades, you must have access to a premium trading platform like SaxoTraderPro. Though the low-end broker will promise you to give the very best tools, in real-life trading you will get the required tools. To avoid such problematic situations, you need to choose a broker like Saxo where you will get free access to the robust trading platform. Learn the use of premium tools and try to create a simple trend trading strategy. Being a new trader, never start to trade the market with real money. Use the demo account for the first few months so that you can easily craft a balanced trading strategy and make a profit in the real market.
No one can become successful in trading without doing hard work. Being a rookie trader, be prepared to learn the three major form of market analysis. Use your knowledge to create a perfect trading strategy. Once you have the initial trading plan, use the demo account to backtest the trading system. If you feel confident with your demo trading performance, start trading the market with managed risk. And always try to trade the market with a well-regulated broker since it will boost your profit factor to a great extent.