Everyone wants to earn huge amount of money in the Forex market. But becoming a successful trader is really hard as the retail traders have to deal with tons of variables. According to the latest statistics, more than 90% of the traders are losing money in Forex. So what’s the key reason for reason for losing money in the trading industry? Lack of confidence and discipline. However, you can significantly improve your trading performance by trading with the market trend. Trend trading strategy is the best way to reduce your risk and making tons of money. Today we will share some amazing tips which will help you trade with the major market retracement.
What is retracement?
Before you start to trade with the market trend, learn more about market retracement. A retracement is nothing but deep correction of price against the market trend. Let’s say, EURUSD pair is in an uptrend. But all of a sudden the pair drop more than 200 pips in the daily chart. After this big drop, the bulls again took control of this market and push the price higher. If you closely notice, you will observe the pair has hit a solid support level before moving in favor of the trend. The down of the market is known as retracement and the solid support level is your entry zone. You need to have the ability to find such a zone in the market to execute quality trades.
Using the reliable candlestick pattern
There are thousands of ways of trading the market. The new traders often get confused with different trading strategies and overload their charts with indicators. This is where you need to take control and keep your chart clear. First of all, you can’t make money by following other people trading system. You have to rely on your trading system. Try to use the Japanese candlestick pattern to have a clear confirmation of the key support and resistance level. Finding the reliable price action signal in your online trading platform is really very easy. Due to the easy nature of price action trading, many people often ignore the risk factors. But always remember, without following the core rule of risk management, you can never become a profitable trader.
Using the fundamental factors
Learning the use of fundamental factors is the most crucial thing in currency trading profession. Without understanding the details of major news release you can’t asses the market trend properly. Most of the time the retail traders relies on technical data. Technical data is nothing but a part of your trading strategy. You need to understand the news factors to execute quality trades. By combining the technical and fundamental data, you can easily create a robust trading strategy which will eventually boost your trading performance. You have remembered, you are trading in favor of the trend. So if things go wrong consider it as a market retracement. However, if the pair breaks a major support or resistance level, it might indicate a trend change. In such a case, you need to close the trade with a managed loss.
The expert trader’s mentality
You need to learn the mentality of the expert traders to become a successful person. The expert traders are always tweaking their trading system to adjust to this dynamic market. This is where the rookie traders make mistake. They simply use the different trading system to make money. You need to stick to one simple trading system to earn a consistent profit. The moment you will start trading in the market is the very moment you will start learning new things. You need to consider the minor details of this market. Develop a strong mentality so that you can embrace the losing orders with facing extreme trouble. Learn to think this profession as your business. Without having a precise plan you should never execute any trade. Be brave when you consider trading as your full-time profession.