We all know Forex trading is one of the most challenging professions in the world. A small mistake can blow your trading account within a blink of an eye. You need to be very cautious while trading the live asset or else you won’t become a successful trader. Many people often try to become a professional trader but sadly 5% of them can make in the complex investment world. Those who become successful trader have worked really hard and developed strong sets of skills to deal with this complex trading industry. You might be thinking to use the EAs and bots to make more money but things are not so simple in Forex market. You have to use the manual trading system to trade the key support and resistance level. If you focus on the key support and resistance level, you can easily make a huge profit from this market. Today we will share four amazing tips which will help you to become a successful trader.
Trade the daily time frame
Higher time frame trading is always safer. If you deal with the lower time frame data, you will have to filter much false trade. Those who are completely new to this trading industry, always try to trade the lower time frame for a quick profit. But trading is not about making money within a short period of time. This is an investment business and you have to understand the importance of proper trading strategy. Try to find the key support and resistance level in the daily time frame since it is one of the best ways to deal with your losing trades. Support and resistance level is the most important elements that you need to understand. If you use the lower time frame, you will be always trading the minor support and resistance level. But in the daily time frame, you get a solid trading zone to make a profit.
Use the 100 and 200 SMA
The use of a simple moving average is one of the best ways to find the dynamic support and resistance level. Those who are struggling with the support and resistance level identification procedure can easily use the simple moving average. But when you use these, make sure you are trading them with price action confirmation signal. Trading the dynamic levels of the market without any confirmation signal is extremely risky. This system is extremely profitable but this doesn’t mean you will be making a profit all the time. So be prepared to embrace losing trades on regular basis. Make sure the facts of risk management is well known to you. Trade the market with high-risk reward ratio so that you can easily deal with few losing trades. Never become frustrated by seeing losing orders in a row.
Do the fundamental analysis
The retail traders often ignore the importance of fundamental factors of the market. They are always placing trades without doing the market analysis. They focus too much on the technical factors and loses a significant portion of their investment. At times the new traders often say that market is not respecting the key support and resistance levels. They say so because they don’t do the fundamental analysis. During the event of high impact news, the key levels of the market often get breached. So if you want to save yourself from such situations, you should always trade the market with managed risk.
Use of multiple time frame analysis
Multiple time frame analysis is the best way to find the best trades. You might not understand the basic concepts of multiple time frame analysis but this is really easy. Do the technical analysis in the different time frame. Focus on the higher time frame data to find the best trades. Ignore the lower time frame trade setups. Make sure you demo trade the market to understand the proper art of multiple time frame analysis.