Professional traders are always one step ahead. They are not using common strategies like the naïve investors to make a living out of trading. Many pro-UK traders have developed a unique but simple strategy that allows them to trade with low risk even at the extreme market condition. If you wish to become a professional trader, you have to act like one. For that, you have to study the portfolios of the successful traders and only then will you be able to change your life.
We all know trend trading is the most effective way to boost profit. But do you know that the majority of the traders are making some silly mistake in trend trading strategy? Due to such a silly mistake, they are blowing up their trading accounts in no time. For this reason, this article is going to be dedicated to naïve traders so that they can rectify the mistakes associated with the trend trading strategy.
Use of the pending orders
It is true that the trend line works as an excellent support and resistance point. But this should not tempt you to trade with pending orders. There is a term known as “Price Action Trading” which allows traders to find the perfect trades at the critical support or resistance level. Those who start with the complicated candlestick pattern always make things complex. You have to start learning with the basic structure and learn more about this market. For instance, try to place your trade with the help of the pin bars. Once the pin bar trading strategy is mastered, you can start dealing with multiple candlesticks. By doing so, you can place the trade in the trend lines with a very tight stop.
Analyzing the news
If you wish to become a professional trader, you should go to a site where the professionals publish analyses on a regular basis. For instance, the top traders at Saxo are always giving powerful market insights that tell you a lot about the market trend. Even if you are new at news trading, by reading their article, you can get a clear idea about the direction of the major trend. Though it will be complicated at the initial stage, soon you will learn what the top traders and analysts are trying to convey the message regarding the global economy. If you keep updating yourself by reading such news articles, in less than six months you will learn which key news factors have the potential to change the trend.
Managing the risk
The trend line trading strategy is not your holy grail. You are going to lose a few trades due to reversal. But this can be solved by using the concept of money management. Even if you buy the most expensive EAs and bots to analyze the potential market condition, it can’t predict the price movement with perfect. Due to the imperfect nature of market analysis, the traders are always ready to accept the losses. Just like the expert, you should be ready to accept the losses on a regular basis. After learning to deal with such a disaster, the trend trading method will become much easier.
Follow your logic
You should always follow logic rather than emotion. If you trade this market with emotion, you are actually placing bets to earn money through luck. But this is a pure business where technical and fundamental skills pay off. It might be tough to go through all the basic details but with perseverance, you can master this technique. Trend lines are created to make the trading process easier. So, you should not create such logic that will make the whole concept of investment complicated. Simplify your ideas and use the support and resistance level of the trend lines to find quality setups. Never be afraid to place trades when the conditions are fulfilled in the market.