Post by adamsmiths on Feb 14, 2017 15:42:06 GMT 8
Forex trading is such a lucrative business that every single day the number of retail traders in this industry is increasing at an exponential rate. Due to its lucrative profit potential, many news traders are opening an online trading account without knowing how to trade the different live assets in the market. In order to make a consistent profit out of trading the financial instrument, traders need to execute their trading plan perfectly. Most of the retail traders in the financial industry are struggling hard since they don’t know how to trade the market properly. In this article, we will discuss 5 amazing tips which will enhance your trading performance in the market.
Use trading journal: If you look at the professional trader then you will notice one thing common in them. Every successful professional trades in the financial industry follow a trading a journal. You might be thinking to follow an online trading journal but by doing so it will not help you at all. Before you open an online trading account and go through the sign-up procedure make sure to buy a dairy which will be acting as your journal. By maintaining a journal in your trading career you will remain focus all the time and most importantly you will be able to follow your trading plan perfectly. After executing any orders in the market be sure to update your trading journal.
Use clean chart: Most of the novice trader in the financial industry uses too many indicators while trading live assets in the market. But the professional traders always prefers to use the clean chart in the market and focus on key support and resistance level in the market. So when you start your trading career develop a habit of using a clean chart. Don’t take any trade in the market based on the indicators decision since they generate lots of false signals in the market. Setup a strong mentality to use clean chart after you open your first online trading account with the reputed broker.
Use price action trading strategy: Price action trading strategy is often considered to the best trading method in the world. As a full-time professional trader in the financial world, you must learn the art of price action trading strategy. Price action trading strategy will allow executing high-quality trades in the market while reducing your potential risk exposure in the market. It’s true that you will face some difficulty in the early stage while using price action trading strategy but if you are strongly committed then you will understand this is one the best trading system in the world in terms of profitability and reliability.
Trade along with the trend: There is assaying in the forex market that “Trend is your friend”. If you simply follow this saying then you will be able to enhance your trading performance to a great extent. All the professional traders always make sure that they are executing their trade in favor of the long-term prevailing trend in the market.so before you take any trades in the market make sure that you are trading along with the long term prevailing trend in the market. The best way to identify the long-term prevailing trend is by following the higher time frame. As a trader, you should also develop the habit of using higher time frame since it produces less false setup in the market.
Use fundamental analysis: Most of the retail traders in the financial market tends to trade the live assets in the market based on technical analysis. It’s true that by using the technical analysis you will be able to find the best setups and trading spot but in order to ride the trend in the market, it’s important that you learn the fundamental analysis section also. The fundamental news release is the price driving catalyst in the market and very often the long term prevailing trend in the market often gets changed due to the event of the high impact news release in the market. So before the announcement of any major news release in the market stay on the sideline until the dust settles down in the market. Once you get a clear direction about the market next movement executes your trade in the market in favor of the long-term prevailing trend.
In summary, There are many ways of enhancing the trading performance. In this article, we have highlighted the most powerful and effective tips which can enhance the trader’s performance in real life trading. If you truly want to become a professional trader in the forex market than always trade in favor of the long-term prevailing trend in the market. Use the higher time frame and price confirmation signal to find the best possible setups in the market. Don’t execute your orders based on technical analysis rather use all the major types of analysis in the market to increase your winning edge.
Use trading journal: If you look at the professional trader then you will notice one thing common in them. Every successful professional trades in the financial industry follow a trading a journal. You might be thinking to follow an online trading journal but by doing so it will not help you at all. Before you open an online trading account and go through the sign-up procedure make sure to buy a dairy which will be acting as your journal. By maintaining a journal in your trading career you will remain focus all the time and most importantly you will be able to follow your trading plan perfectly. After executing any orders in the market be sure to update your trading journal.
Use clean chart: Most of the novice trader in the financial industry uses too many indicators while trading live assets in the market. But the professional traders always prefers to use the clean chart in the market and focus on key support and resistance level in the market. So when you start your trading career develop a habit of using a clean chart. Don’t take any trade in the market based on the indicators decision since they generate lots of false signals in the market. Setup a strong mentality to use clean chart after you open your first online trading account with the reputed broker.
Use price action trading strategy: Price action trading strategy is often considered to the best trading method in the world. As a full-time professional trader in the financial world, you must learn the art of price action trading strategy. Price action trading strategy will allow executing high-quality trades in the market while reducing your potential risk exposure in the market. It’s true that you will face some difficulty in the early stage while using price action trading strategy but if you are strongly committed then you will understand this is one the best trading system in the world in terms of profitability and reliability.
Trade along with the trend: There is assaying in the forex market that “Trend is your friend”. If you simply follow this saying then you will be able to enhance your trading performance to a great extent. All the professional traders always make sure that they are executing their trade in favor of the long-term prevailing trend in the market.so before you take any trades in the market make sure that you are trading along with the long term prevailing trend in the market. The best way to identify the long-term prevailing trend is by following the higher time frame. As a trader, you should also develop the habit of using higher time frame since it produces less false setup in the market.
Use fundamental analysis: Most of the retail traders in the financial market tends to trade the live assets in the market based on technical analysis. It’s true that by using the technical analysis you will be able to find the best setups and trading spot but in order to ride the trend in the market, it’s important that you learn the fundamental analysis section also. The fundamental news release is the price driving catalyst in the market and very often the long term prevailing trend in the market often gets changed due to the event of the high impact news release in the market. So before the announcement of any major news release in the market stay on the sideline until the dust settles down in the market. Once you get a clear direction about the market next movement executes your trade in the market in favor of the long-term prevailing trend.
In summary, There are many ways of enhancing the trading performance. In this article, we have highlighted the most powerful and effective tips which can enhance the trader’s performance in real life trading. If you truly want to become a professional trader in the forex market than always trade in favor of the long-term prevailing trend in the market. Use the higher time frame and price confirmation signal to find the best possible setups in the market. Don’t execute your orders based on technical analysis rather use all the major types of analysis in the market to increase your winning edge.