The forex market can offer you financial freedom. But securing financial freedom in real life is a very hard task. Even if you manage to open a real trading account, it’s very hard to make a consistent profit. The naive traders are always losing money since they think about the profit factors only. You need to assess the portfolio of successful traders in Singapore. Do you really think they are making millions of dollars profit each year just by using some super expensive trading strategy? No trading strategy is perfect for retail traders. In fact, complicated trading strategy always results in a big loss.
You need to learn to trade the key levels of the market to make consistent profit. Without trading the key levels it’s really hard to make some decent profit. Let’s learn to trade the key support and resistance like the elite traders at Saxo.
Use of the higher time frame
You need to use the higher time frame to find the critical support and resistance level. Most of the time the traders are looking to trade the market with the help of minor support and resistance. In fact, they don’t even know how to find the major levels of trade. To find the major levels, you need to focus on the daily or weekly time frame. Finding quality trades in the CFD market is not as easy as it seems. Look at the skilled traders at Saxo and you will understand how hard they have worked to learn the art of trading. None of them are relying on the lower time frame since it forces them to trade the minor levels only.
Learn to use the candlestick pattern
You must learn to use the candlestick pattern to become a successful trader. Those who don’t use the candlestick pattern at trading, are always losing most of the trades. Learning to trade the market with the help of the Japanese candlestick pattern is more like trading with precision. Instead of memorizing all the patterns, you need to focus on a reliable pattern. For instance, learn about the pin bar trading strategy. This is one of the easiest ways to execute quality trades at the critical support and resistance level. Forget the fact, price action trading is really hard. Focus on the simple approach and trade the market with logic.
Learn to avoid the news
You must learn to avoid the major news to become a skilled trader. Those who are new to this market don’t really know the critical level is often broken in the event of major news. If you want to protect your trading capital, make sure you are not pushing yourself to the limit. Forget the fact, trading is more like dealing with the breakout in an effective way. Unless you are confident with your fundamental analysis skills, you should never trade the major news. Avoid trading the major news so that you can protect yourself from the unexpected breakout.
Use the moving average
Some of the retail traders don’t even know how to find the critical support and resistance level in the Forex market. Though this is not hard you can make things much easier by using the 200 days SMA acts like dynamic support and resistance level. Many scalpers of trade these levels and make a decent profit. Instead of setting up the pending orders, you need to rely on the price action signals. However, those who are looking for short term gains should definitely set tight stop loss while trading these levels. If necessary you can also use the 100 days SMA. Both of these SMA provides excellent support and resistance level.
You should use the demo account to learn the support and resistance level trading method. Focus on your faults and try to improve your execution process. Never try to find shortcuts at trading as it can result in a big loss.