Finding the perfect trade on the Forex market is a very challenging task. New traders often become frustrated and quit their trading profession. In fact, trading is not all that difficult as long as you know the details of the Forex market. Learn to trade the markets on a demo account so you don’t have to risk real money. Some retail traders in Hong Kong say demo trading is very boring but if you fail to control your level of patience, trading is not the perfect industry for you to make money. You have to wait on the sidelines even for weeks just to find the best trading arrangements that support market trends. In this article, we will provide you with some clear guidelines that will help you find the best trading settings on the Forex market.
Learn the Three Main Forms of Market Analysis
The majority of W88.com traders are worried about technical analysis. They always try to trade the market using indicators and other technical parameters. Without understanding the concepts of fundamental analysis you can never ride on long term market trends. Learning fundamental analysis at an early stage may seem a little challenging, but once you start understanding high-impact news things will become easy. Once you have mastered this form of market analysis, it is time to focus on sentiment analysis. This is something you cannot learn by reading books and articles. Over a period of time, you developed the perfect skills to analyze market sentiment with an extreme degree of precision.
Start Using Price Action Confirmation Signals
Price action trading is often referred to as the best trading system in the world. This system is based on a different formation of Japanese candlestick patterns. Being a price action trader, you must have access to a Saxo Forex trading account as they offer the SaxoTraderPro platform. Without having the right price feed, you will not be able to carry out a perfect market analysis based on Japanese candlestick patterns. Being a price action trader, always try to analyze the data in a higher time frame as it will significantly increase your confidence level. Sometimes you may have quality trades in the lower timeframes, but it’s better to avoid those signals unless you have extensive demo trading experience.
Avoid Trading High Impact News
Do you really want to make quality trades and reduce your losses? If so, stop trading high impact news. It is true that you can make a lot of money just trading during the major news releases but it may cost you a lot of money. News trading is only for experienced professionals who become new traders, it is not a good idea to trade volatile markets. Wait on the sidelines for the dust to settle on the market after high impact news releases and place trades with the right risk factors.
Professional tarders are always one step ahead when it comes to risk management factors. They never take unnecessary risks even though they have a large amount of money. Learning the art of trading management is essential to your trading success. Try reading new books and articles regularly so you know more about this market. Always remember, information is power when it comes to the investment business. In the early stages, never think of trading as your full time profession as you may lose most of your investment and make things worse. Unless you are able to make consistent profits for three consecutive years, consider the trading profession as your alternative source of income.