There is a well-known proverb in the forex industry that the trend is your friend. All the professional traders always execute their orders in the market in favor of the long-term prevailing trend. On the contrary, the novice traders tend to pick the tops and bottoms of the currency pairs in the market and thus incur a heavy loss. If you truly want to become a professional trader in the financial market then it’s highly imperative that you trade in favor of the long-term prevailing trend in the market. If you look at the success rate in the forex industry then you will notice that many new traders in the forex market often fails to achieve success even though they are trading in favor of the long-term prevailing trend. In this article, we will discuss the most common mistakes that every trader makes in trend line trading.
Faulty trend line: There are many traders in the world who are saying that they are executing their trades in the trend line but all of their trades are hitting the stop loss. So what possible went wrong with them. The answer is simple. They are drawing the faulty trend line in the market. If you look at the professional trader who is trading forex option then you will see that every single one of them in the market draws the trend line with the extreme level of precision. In order to draw a valid trend line in the market you need at least three connecting points and you need to make sure that you do not force joining the points. Most of the novice traders in the forex market force joint the three points and thus incur financial loss while trading the live assist in the market. But if you know how to draw the perfect trend line in the market then you will see that most of the trades that you execute in the trend line are hitting your potential take profit level in the market.
Use price action signal: Price action trading strategy is considered to be most profitable and reliable trading strategy in the world. All the professional traders who are trading forex option are currently using price action trading strategy due to its extreme level of profitability. So if you have a valid trend line in the market then waiting patiently for the price to retrace back to the existing trend line in the market. Once the market hit the trend line support or resistance level don’t execute the orders in the market rather wait for price action confirmation signal. If you can trade the market with price action confirmation signal then within a very short period of time you will see that most of the trades that you execute in the market are closing with profit.
Higher time frame trading: Trading the higher time frame has an enormous advantage. All the professional are trading forex option in the higher time frame since it greatly reduces the false signals in the market. Most of the novice trader in the financial market are having trouble to execute high-quality trades with the trend line trading strategy since they are using the lower time frame to draw the trend line in the market. So when you draw the trend line in the market make sure that you use the daily chart or the weekly chart. It’s true that in order to trade the daily and weekly chart you will need to wait for a long time but if you truly want to become a successful trader then it’s a must for you. By trading the higher time frame in the market you also develop a great level of precision to trade the live assets in the global market.
Summary: Forex trading is not a get rich quick scheme rather it is one of the smartest business in the world. If you are relatively new in forex trading then it’s highly imperative that you trade the market in favor of the long-term prevailing trend since it will greatly reduce the risk exposure in the market. But make sure that you draw the trend line perfectly in the market since a faulty trend line will cause you financial losses in the market. Last but not the least always follow proper risk management factors before executing any orders in the market.
There are many different professions in the world but forex trading is now one of the most favorite professionals among the normal people. Compared to any other business in the world this market allows us to secure our financial freedom in every possible way. Even after having a fancy education in the forex market there is no grantee that you will get a good job in the financial market. There are many people in the world who are still struggling hard to meet their financial need even after doing 9 – 5-day job. But if you trade the live assets in the market than sky will be your limit for your earnings. But trading the financial instrument is not an easy task rather it requires strong foundation about the financial industry. In this article, we will discuss how to become better traders in the financial world.
Develop a strong foundation: Most of the novice traders in the financial market fails to achieve success in forex trading since they trade without having any strong knowledge about the financial sectors. If you are relatively new in forex trading then it’s highly imperative for you to learn forex before start trading with real money. Many novice traders have lost their trading capital while trading the dynamics of the market. If you look at the professional traders than you will notice every single one of them have a clear understanding of the financial sectors. So make sure you also develop a strong foundation if you truly want to become professional traders in the forex market.
Learn the art of price action trading: Price action trading is considered to be the most powerful and reliable trading strategy in the word. If you want to learn forex then you should learn the art of price action trading strategy. Price action trading strategy is based on the raw price movement. All the professional traders trade the higher time frame in the market and make a decent profit by trading the raw candlestick formation in the market. If you are relatively new in forex trading than its true that you will have little bit tough time in learning the art of price action but if you remain determined than within in a month you will realize that this is one a perfect trading strategy in the forex market. But before you start trading the live assist with price action confirmation signal make sure you know how to draw the key support and resistance level in the market. Once you know how to draw them use price action confirmation signal to trade in favor of the long-term prevailing trend.
Know your risk tolerance level: Most of the novice traders in the forex market fails to achieve success in the financial industry since they don’t follow proper risk management factors in every single trade. If you truly want to learn forex than it highly imperative that you execute your orders in the market by following proper risk management factors. As a trader, you should know your own risk tolerance level in the market. Don’t focus on the 2 percent rule rather find your tolerance level? Make sure that you are always looking for quality trade execution in the market rather than quality. In the eyes of trained professional risk management factors is considered to the number one element which can make a person profitable traders in the market. If you look at the professional trader then you will notice they also have some losing trades in the market. But they always make sure that heir winners are bigger than their losers and thus they remain in the success line.
Summary: Trading the financial instrument in the live market is an art. If you truly want to become a professional trader than it’s highly imperative that you have a clear understanding of the financial sectors in the market. If you don’t know how to trade the market then go through the articles and books then you will find that it is not that complex. Try to master the art of price action trading strategy since it is one of the most profitable trading strategies in today’s world. And always follow proper risk monument factors.
In the Forex market, nothing seems to be cheap or easy but it’s worth trading. Why? The reason is if you try hard for something the ultimate outcome is high likewise in trading Forex you will be able to gain large profits unlike other ordinary jobs as (Forex trading can be your career) many people out there are trading for a living. So let us get back to the point since Forex is not easy and simple you should have the knowledge on it, if you are part of the market. Actually, what is meant by Forex mentor? According to our definition a Forex mentor who has the knowledge in making by trading the Forex market, he or she should have the proven track for it. The traders should be able to learn from the programs offered by the mentors. To be more specific the mentors are professional traders.
How to find a good mentor
The common question which pops up in every trader’s mind is that whether Forex is gambling. It is true that the Forex market includes the certain percentage of gambling but this extremely calculative. Even if you are a professional trader and an intermediate trader you cannot decide what the Dollar will do the next minute. There are many methods for you to become the expert in the market and also, in order to study the market. But still, if the experts in the market say that they know the secret behind the Forex market, we tell you not to believe it. If they have found the secret by now, they could have been millionaires. If they knew how to eliminate all the risk and to trade the market they would have been the richest person on earth. You can make yourself the best in trading Forex by understanding and learn the Forex market from dawn to dust but still, the reality it involves inevitable risk.