Novice traders guide to learn trend trading strategy
People are always working to secure their financial freedom in life. But this is not an easy task. You have to overcome many obstacles and develop high-income skills. Without having high-income skills it’s nearly impossible to lead a luxury life. Even if you manage to develop one such skill, you have to find the right connection. Many people in Singapore are stuck with the traditional day job even after having a Master’s degree. So, how can we secure a high standard of living in this competitive world? Well, you can become a currency trader. Thousands of currency traders in Singapore are earning millions with the trading business.
Today, we are going to explore some amazing techniques by which we can learn to trade with the trend. The trend trading method can greatly improve your success rate and make the trading process much easier. Let’s start exploring the details.
Get the basics first
Those who step into the trading world for the very first time have a lot to learn. They should not be bothered about the trend trading method. First of all, having a sound knowledge about the supply and demand level is the most important aspect of trading. But rookies often start relying on the pivot point calculator to find the trading zones. However, these pivot points are not going to help the traders. It is going to make them weak. Instead of getting used to the indicator, learn to deal with the drawing tools in the trading platform. After learning to draw the support and resistance level, you have to start focusing on the trend line drawing technique.
Drawing the trend line
You need to learn to draw the trend line by using a robust demo account. Use the Saxo capital markets pte and open a practice account so that you can start developing your skills without losing real money. You must have three connecting points to draw a valid trend line. Though some of the intermediate traders think using two connecting points is enough but it is not all true. The experts who have decades of trading experience often fear to draw the trend line with two connecting points. To keep your trading process safe, you should always use the standard rules of drawing the trend lines. By doing so, you can reduce the risk.
Lowering the down the risk
Just by learning to find the trend line support and resistance, the naïve traders start dreaming in millions. But earning millions is not that easy. The key trend often reverses without giving any prior signals. So, if you intend to keep on the safe side of trading, you must learn to keep the risk relatively low. The standard process is to use a 2% risk in each trade. But this standard process is not going to work all the time. If you wish to become a successful trader, you should start dealing with the complex price movement and focus on the risk exposure factor. Regardless of your skill level, the overall risk exposure should not be more than 4% in any trade.
Trade with discipline
Do you know why some of the trend traders are losing money even after following the basic guidelines? The key reason for this is breaking the rules. You can’t make your life better unless you learn to trade the market with strong discipline. Pushing yourself to the next level and trying to earn a huge amount of money by breaking all the basic rules is a very big mistake. Think about safety and keep the trading process simple. Start writing a simple trading journal so that you can follow the rules mentioned in the journal. Being a rookie, you should not take to things in an addictive manner. Follow the standard procedure while placing the trades and implement new strategies whilst sticking to your trading rules.