December 23, 2019 at 12:57 pm #141937
People know the fact, trading can be a life-changing business. Being a new trader in Singapore you have a lot to learn. Joining the trading industry to earn more money and taking aggressive risk is not going to work. You have to think like the pro traders and execute the trades with managed risk. Always remember the fact, trading is more like developing your skills. Unless you are well educated and trade the market with proper discipline you will always lose money.
In this article, we are going to discuss the different phases of the market. If you can analyze the different stages of the price movement, you can expect to make a decent profit.
The traders are taught to trade the trending market. But do you know the market often stays ranging? If you want to make a consistent profit, you must learn to deal with the range-bound market. The naive traders execute short at the resistance and go for long at the critical support level. But this is not the perfect way to execute the orders. You have analyzed the past trend and focus on long term goals. Let’s say the past trend was bearish. So, instead of executing long order, you need to look for short trade setups in the ranging market.
Dealing with low volatility
At times, the market ceases it’s volatile and it becomes tough to make a consistent profit. This is where you need to improvise. Look for the quality signals in the trading platform and increase the lot size. By taking too much risk in each trade, you always lose money. But if you increase the risk with logics you don’t have to lose big capital. Relying on the indicators and EAs don’t go to work. You have to focus on the price action signals. Those who trade the market with the price action confirmation signal can make a profit most of the time. They can use tight stop loss and execute the orders with the level of precision. So, it increases the lot size when you face a low level of volatility.
Trading the breakout
The market often breaks critical support or resistance level without giving any signal. These are the times when most of the rookie traders lose money. But dealing with market volatility is a very easy task and you must learn to trade the market with proper discipline. Before you take any steps to trade the major breakout, you need to determine the trend. If the breakout suggests a trend change, you should not execute any trade. On the contrary, if you find the breakout in favor of the trend, execute the orders with a high level of accuracy.
Dealing with the extended move
The new traders don’t know the perfect way to deal with the extended movement of the market. Most of the time they fail to make a profit due to market retracement. You must learn about the major market retracement since it is one of the most efficient ways to make a profit. Some of you might think trading the retracement is the easiest way to make money. But if you do some research, you will know the retracement points give the perfect entry point. Stop trading the minor retracement since it might result in a big loss. When you deal with the big market movement, try to limit the risk factors by analyzing the price action signals. And be prepared to deal with deeper correction in price.
You must understand the different phases of this market or else you will always lose money. The majority of the retail traders fail to make a profit since they don’t know the perfect way to execute the orders. They take an unnecessary risk without even understanding how the market works. So, educate yourself properly so that you don’t have to lose trades due to a lack of knowledge.
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