The trend trading method is very popular among professional Forex traders. In fact, elite traders in Singapore always recommend that new traders trade with the major trend. If you manage to learn the art of the trend trading strategy, you can expect to make a big profit without losing too much money. The elite traders are always making a decision based on a complicated trading method. But do you really think the method seems complained to the elite traders? If you closely analyze their trading strategy, you will notice one thing in common. All of them are trading the market with the major trend.
The trend trading strategy is not that hard. In fact, you can easily master these skills by using some of the basic trading strategies. Let’s learn three amazing ways to trade with the trend.
Trading the trend line
Trading the major trend line is one of the easiest ways to earn money. To find a valid trend line you need a minimum of three connecting points. But make sure you are connecting the points in the higher time frame. If you draw the trend line in the lower period, you are not going to trade the major trend line. Most of the time, you will end up executing the orders at the minor retracement levels. So, learn to draw the perfect trend line using the higher time frame since it will give you much more accurate data.
Use the candlestick pattern
Trading the trend line using the pending orders is a very big mistake. You need to look for the candlestick patterns in the trading platform. Executing trades based on the Japanese candlestick pattern is known as the price action trading method. By learning to trade the price action signals, you can easily improve your trend trading method. Though the trend trading strategy is one of the easiest ways to execute the trade still the traders often find it hard to find the perfect stop. But this problem can be easily solved by learning to use the price action confirmation signals. When you use the price action pattern, try to switch to the higher time frame. By doing so, you can significantly improve your win rate in the trading industry.
Learning about the price action confirmation signals might take some time. But you have your demo account at Saxo. Start trading with the price action confirmation signals and see how things work. If you feel confused about your trading method, you should take a short break. However, you should never become frustrated with your news trading method since it is by far the best way to earn money from this market.
Use the news factors
To make a profit by trading the major trend, you need to learn about the news factors. News trading strategy is by far one of the riskiest trading methods. But if you analyze the news data and assess the strength of the market trend, it won’t take much time to develop your skills as a currency trader. Try to think of this as your business. The more you learn the better the chance is that you will become a profitable trader. Once you master the art of fundamental analysis, it won’t take much time to develop yourself as a fulltime trader. Trading is like placing the perfect bets with low risk. So, don’t become aggressive after learning to analyze the news data. Be safe and follow the conservative trading method. You can also use the news data to trade the major reversal. The major breakout of the trend line is just the impact of major news. So, try to keep yourself in-tune with the global market news so that you can avoid the major breakout. If you can use some minor tweaks in your trading method, you can even trade the major reversal.
Sources: mytradingskills.com / babypips.com