May 12, 2020, 2:27 pm1.3k pts
Everyone thinks the trading business is very complicated task. For the rookies in Singapore, the process involved in currency trading is seems like rocket science. They always try to come up with a super complicated method as they think the use of complex strategies increases their win rate. But in reality, the success of the traders depend on the simple process. All the top traders in the world rely on simple logic. In fact, many traders are using the trend line, support, and resistance level to take the trade.
Simplifying the trading method requires strong analytical skills. Unless you have the power of knowledge, you will never feel comfortable with the simple approach. The skilled traders can say a lot about the market dynamics just by seeing the chart. Though rookies might say they have a secret formula to trade the asset, they are using their experience. After reading this article, you will know how to read the chart like a pro. Let's learn some amazing steps that can help us to simplify the trading process.
Stick to the major pairs only
You should not trade cross or the exotic pairs with the hope to earn more money. Trading the cross pair is a very risky task and most of the time the traders lose money since they don't know the impact of news on the exotic. But if you trade the major pairs only, you will know how the market reacts to different types of news. Things might seem a little challenging at the initial stage but once you learn to trade with discipline, you will realize why the major pair trading system is so profitable.
Trade with the trend only
You should not try to trade against the trend. Taking trades with the trend is the most effective way to make a big profit. Those who are relatively new to the trading business are losing money most of the time since they don't know how to take trades with the trend. It is not that tough. If you have access to the professional platform, you can use the trend line tool to find the desired trading zone. Choose a brokers like Saxo since they can give you the perfect trading environment free of cost.
Stop trading with high leverage
Taking the trades in the high leverage account is another key reason to lose a big sum of money. The professional never take the trade with the leveraged account. For them, leverage trading is like dealing with burning coal. The slightest mistake can cost them heavily. So, it's very obvious they are using a huge amount of money to trade the asset. You may say, you don't have such big capital to earn a decent living out trading. Unless you have $10000 to trade, you should not think this as your fulltime business. Having a $10K account, you can make some hefty profit with 1:10 leverage.
Trade with a routine
One of the key reason trading becomes complicated for the rookies since they don't trade with the routine. Following a trading routine is a must to become a skilled currency trading business. If you are new to this business, you have to carefully analyze the critical market data. Things might be challenging but the critical market data are nothing but the support and resistance level. Analyze these levels during the specific hours and you will find the good trades. After losing trades, you might feel the urge to break the rules. But the moment you start breaking the rules is the perfect time to blow up the trading account.
Develop your mental stability
You need to develop your confidence level to use a simple method. You must believe that the support and resistance level trading method. No fancy indicator is required if you manage to learn price action. Work hard on a specific set of skills and you won't have any trouble making a big profit.