How to plan the trades in the financial market
6 months ago forexsimulation 0
Forex trading is getting very much popular nowadays. Previously trading the financial instrument was only limited to the large banks and institutions but due to recent advancement in technology, all the normal people in the world can trade the live assets in the market. However, the success rate is pretty low in the forex trading industry compared to other business in the world. If you look at the statistics then you will notice that out of 100 traders only 5 are making consistent profit in trading. So how do we become professional traders in the financial market? In order to become professional traders, you need to have a solid plan in the market. In this article, we will discuss how to develop a solid plan for trading the live assets in the market.
Key support and resistance level: The first thing that you should do in order to make profitable trades in the market is to draw the key support and resistance level in the market. Most of the novice traders in the financial market draws the support and resistance level in the smaller time frame. But the smaller time frame will only give you minor support and resistance level so make sure that you draw them in the higher time frame. The best chart is the daily chart and 4-hour timeframe to draw the key support and resistance level in the market.
Fundamental factors: Most of the novice trader in the forex market often ignores the power of fundamental analysis while executing the trades in the market. But as a full-time trader, you should know that the fundamental analysis is one of the key factors to trade the live assets in the market in the longer time frame. If you truly want to execute high-quality trades in the market then it’s very important that you do the fundamental analysis of the market to execute your orders.
Risk management factors: Risk management factors are one of the most vital element to plan your trades in the market. No matter how convincing your trade setup is, there is a strong chance that your trade might go against you. So how do manage our losing orders in the market? The answer is pretty simple. In order to make sure that our trading plan is complete we need to follow proper risk management factors in every single trade. Some of the professional traders in the financial market often consider this as the most vital element to remain profitable in the forex market. So it’s highly imperative you follow perfect risk management factors for long-term profit.
Summary: No matter which profession or business you chose in the market you need to have a solid plan in the market. So if you truly want to become professional traders in the financial market make sure that you develop a solid trading system with a valid trading plan in the market. And when you execute your orders in the market look at the fundamental factors and never risk more than the amount you can afford in any single trade.