Tuesday, March 17, 2020 12:41PM / Aqib Raja* / Header Image Credit: 9jacash Flow
Trading with the major trend is the most effective way to make money in trading. If you are new to this market, make sure you learn to deal with the market dynamics with a high level of accuracy. Without having a strong knowledge of the technical and fundamental parameters, it's really hard to make a consistent profit. Being a naive trader, you should start trading the market with a demo account. By using the demo account, you can expect to make some big profit and change your life within a year.
But never think that by learning about the trend trading strategy, you will become a millionaire. You should have the skills to find the major trend reversal with a high level of accuracy. Let's find out some of the amazing methods by which you can find the major reversal in the trend.
The chart pattern trading strategy is a reliable way to earn money in trading. If you learn about the reversal chart pattern trading strategy, you can easily trade the major reversal with a high level of accuracy. Before you start to trade with real money, try to use the demo account so that you can analyze chart pattern with a high level of accuracy.
Think about the long term goals and try to improve your skills by learning from your mistakes. When you use the major chart, focus on the higher time frame. Analyzing the lower period to find the chart pattern is a very mistake. Always think about the safety of your investment when it comes to the trading business.
To find the major trend reversal in the market you can rely on the Fibonacci retirement tools. Many skilled traders in the CFD industry uses the concept of 61.8% of the retracement level to find the major reversal in the market. If for any reason, price manages to break the 61.8% retracement level, you should be executing the trades in the market. Never think you are the king. To become good at trading, you should learn the details of this industry.
Try to find the key retracement level by using the major swings in the market. If you draw the retracement level based on the minor swings, you are not going to get any good results. Use the daily or weekly time frame to draw the important levels since it can boost your profit factors to a great extent.
News factors are one of the most powerful elements that can change the course of the trend. For this reason, the pro traders at Saxo always focus on the major news release. They never trade the market based on the technical data only. Once you learn to find the key retracement levels, you can easily make a big profit without losing too much money.
Still, you have a huge room to improve. For instance, focus on the major news so that you can find the potential trade setups and asses the quality of the trades. If for any reason the high impact news suggests a significant change in the economy, you should be prepared for the major reversal.
Those who have experience and have good analytical ability can trade the major reversal and make a decent profit from this market. On the other hand, those who don't have the skills to deal with the market dynamics are always going to lose money. Unless you have strong knowledge about the technical and fundamental parameters of the market, you should never try to trade the major news. Try to trade with the major trend since the risk exposure is low.
However, if you gain confidence with the reversal trading strategy, you should slowly trade the key reversal with low risk. Make sure you never push yourself too hard to learn reversal trading strategy.
*Aqib Raja is a Digital Marketer and IT Professional. You can connect with him on Facebook