Four amazing steps to become a professional price action trader
Everyone is looking to find the best trading system in the world. The new traders are ready to spend thousands of dollars to buy a stable trading system which will make them a profitable trader. If trading was so easy, no one in this world would have lost money. You have to realize the fact majority of the new traders are blowing their trading account within the first three months. Most of them trade this market with their emotions. But emotions have no place in the investment industry. The expert Singaporean traders always use three major form of market analysis to secure profitable trades. Though we can use many different ways of the trading system yet we must look for simple trading strategy. Now we are going to give you four amazing tips which will make you a profitable trader in the Forex market.
Higher highs and higher lows
Trading with the market trend is one of the easiest ways to minimize your risk factors. Without assessing the market trend it will be very hard for you to filter out false signals. Use the higher highs to find the bearish trend of the market. Connect three higher highs with a trend line tool and you will get your resistance level. Similarly, you can connect three higher lows to get the bullish trend line support level. Instead of placing pending orders, wait for the price action confirmation signal. It will help you to execute orders with thigh stop loss. Though the system is extremely profitable yet you should never risk more than 3-5% of your account capital. Limiting your risk factors should be your first step to becoming successful at currency trading. Proper knowledge of higher highs and higher lows will help you to execute quality trades at any market conditions.
Trading the Bollinger band
Bollinger band indicator is one of the most favorite tools of the day traders. It helps to find the dynamic support and resistance level of the market. But when you use the Bollinger band indicator you have to switch back to the daily time frame. Those who want to follow aggressive trading system can also use this indicator in the lower time frame. Many expert traders in the Forex trading Singapore community use this indicator to scalp the market. As a scalper, you should not use the only one-time frame. Study the price movement in the different time frame so that you can easily find the best trades. When you use the Bollinger band indicator in a synthetic pair, try changing the settings of the indicators. The default settings work best when you use it on Forex majors. And make sure you use the price action signals to trade the dynamic support and resistance level of the market.
Use of zigzag indicators
Zigzag indicators are not so popular yet the professional traders find it extremely useful. It helps the traders to assess the market momentum. When the market makes new highs or lows it gives you a clear signal. But never trade the zigzag indicator without having any price action confirmation signal. Since it’s a leading indicator you must have a deal with other trading parameters to secure your profitable trades.
Advance knowledge of trade management
Becoming a professional price action trader doesn’t mean you will win all trades. Trade management is very important factors in the Forex market and it will help you to manage your losing trades in an organized way. The new traders don’t know how to scale their trade to book a certain portion of their profit. Use the trailing stop loss features to secure your profit. Learning all the key ingredients of risk management factors will not be an easy task. However, with your strong determination, devotion, and dedication, you can easily understand all these complex features. Once you truly understand the proper method of managing your trades, it won’t take much time become a profitable trader.