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
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