June 28, 2017 at 8:21 am #721
Trading the financial instrument is one of the most complex tasks in the world and if you look at the professional traders then you will notice that every single one of them have a very clear understanding of the forex market. Unlike the novice traders, the expert traders in the United Kingdom always prefer to trade the high-quality trade signals in the market. Most of the novice traders consider trading as a quick solution for their financial problem but in reality, you need to have the perfect trading knowledge to trade this high volatile market. The novice traders simply execute random trades in their online trading account to make some money but at the end of the day, they lose a big portion of their trading account. In this article, we will discuss the best way to trade the high volatile market conditions.
Trade the higher time frame: Trading the higher time frame in the forex market has many advantages. If you are relatively new in trading then you might be trading the lower time frame since it will give you lots of trading opportunity. But in order to make a profit in the financial market, you always need t focus on high-quality trade execution. If you look at the professional traders at Saxo then you will notice that every single one of them prefers the higher time frame in the market. When the market is extremely volatile you need to pick the higher time frame since it will exhibit less false spike. Most of the time the novice traders in the financial market often lose their patience while trading the higher time frame and thus execute low-quality trades. But if you truly want to succeed in this high volatile market then make sure that you have complete control over your emotions.
Price action candlestick pattern
Price action trading strategy is very much popular nowadays and the expert trades use the highly reliable candlestick pattern to trade the extreme level of market volatility. In the forex trading industry, you need to follow strict trading discipline in order to make a consistent profit. Since the market is extremely volatile always trade the key support and resistance level with price action confirmation signal. Most of the novice traders often get fascinated by seeing the reliability of this trading strategy and thus they execute high lot size trades in the market. But in the Forex market, no trading strategy can give you 100 percent profitable entry in the market.SO before you place any trades in your trading account make sure that you have assessed the risk factors for that certain trade. And always try to trade in favor of the long-term trend to reduce the risk exposure in trading.
Avoid the high impact news
The forex market becomes extremely volatile during the event of the high impact news release in the market. It’s true that if you can trade the market then volatility is the best time to make a profit. Most of the novice traders execute their orders in the market prior to the news release and thus loses money most of the time. But the professional traders always wait in the sideline and trade the market with price action confirmation signal after the dust settles down. But you need to apply some tricks while trading the market after the news release. Instead of using the higher time frame in the market the expert traders switch back to the 5-minute time frame and look for reliable candlestick pattern in favor of the trend. Once they find the perfect trade setups they simply execute their trade with perfect risk management factors.
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