Everyone wants to master the art of trading within a short period of time. After opening their trading account, the new trader gets busy in placing trades. But most of the novice traders lose a significant portion of their investment in doing so.
Trading is an art.
You need to develop a balance trading strategy to deal with the dynamic nature of this market. If you don’t educate yourself with the proper knowledge of Forex market, you won’t be able to make a huge amount of money.
Some retail traders often say what the best way to become a profitable trader is. The expert Singaporean traders always say knowledge is the key ingredient to develop yourself as a successful trader.
When you start trading the live assets, make sure you do the market analysis in the higher time frame. Higher time frame trading is extremely profitable but you need to follow some specific guidelines.
Learn about price action analysis
When you start your trading career, you will face an extreme level of difficulty. Most of the traders don’t know how to pace trade. Some retail traders often follow other people trading system to find the high-quality trade setups. But things are not so simple.
You have to understand the fact, without developing your trading strategy you will never become a profitable trader. Start learning price action trading strategy since it is one of the easiest ways to trade the market. But when you do the market analysis make sure you use the higher time frame data.
If you truly learn the basic price action confirmation signal, it won’t be a tough task for you to find the perfect trades in favor of the long-term market. Though the system is extremely profitable and reliable yet you should follow proper risk management.
Use of multiple time frame in your technical analysis
The study of different time frame for the same currency pairs is known as multiple time frame analysis. Most of the pro-Singaporean traders in the CFD trading community uses the multiple time frame analysis to filter out the false trading signals.
If you trade this market for a long period of time, you will be surprised to see the false spike and signals. The majority of the novice traders loses a significant portion of their in investment in such case. However, those who trade the higher time frame data can easily avoid such trades by doing the multiple time frame analysis.
In multiple time frame analysis, you need to focus on the higher time frame data. At times you will not get a clear trading signal but this is absolutely normal. Stay on the sideline in such case and wait for the next trade setup.
Assessing the fundamental factors of the market
Do you really want to see yourself as a successful trader? Do you really want to master the art of price action trading? If yes, you need to learn fundamental analysis. Fundamental analysis is nothing but the study of the economic performance of a certain country.
It allows the traders to measure the overall strength of the market trend. Without understanding the strength of currency pair trend, it’s almost impossible to ride the long-term market trend. Since you will be trading the higher time frame data, it’s highly imperative you can ride the market trend to maximize your profit.
Some retail traders often cut their winning trades too early. But this is absolutely wrong. You need to stick to your trading plan so that you can easily make money in the long run. At times you will often face a series of losing trades but this is absolutely fine.
Consider the losing trades as your business cost and wait for the next trade setup. As a full-time trader, make sure you have a financial backup for at least six months.