Everyone wants to become a profitable trader. But if you perform in-depth analysis, you will be surprised to discover only 5% of the retail traders are successful in the Forex market. Making consistent profit in the trading industry is a very challenging task. You have to keep learning new things to keep pace with the dynamic nature of this market. Though there are many ways to trade the live asset, the experienced traders prefer a chart pattern trading strategy since it allows them to ride the long term market trend. There are two basic types of chart pattern in the Forex market. These are:
- Reversal chart pattern
- Continuation chart pattern
Those who are new to the Forex trading industry should focus on a continuation chart pattern. On the contrary, the experienced traders should try to trade both reversal and continuation chart pattern. Everyone wants to become a profitable trader and let’s learn some amazing techniques used by the pro traders to successfully trade the major chart pattern.
Use of higher time frame
Selection of your trading time frame plays a great role in your trading performance. You can’t make consistent profit in the retail trading industry without educating yourself properly. If you learn the basic, you will never scalp the market. Position or long term trading strategy is often considered to be the safest way to trade this market. Look for potential chart pattern in the higher time frame. Stop focusing on the lower time frame data since you will get many false signals. Always remember, the quality will beat quantity in every aspect of life. So, stop thinking about overtrading the market to make more money. Spot the major chart pattern in the higher time frame to execute quality trades.
Analyze the fundamental variables
If you search the term Forex trading Singapore you will be surprised to see the number of active retail traders. Though the market is open to all, very few traders are able to make a profit. Majority of the traders focus on the technical parameters of this market and thus they make mistake. To trade the major chart patterns like head and shoulder, triangle chart pattern, etc you must have a clear knowledge of the fundamental factors. Always remember, most of the major breakout occurs during the event of high impact news. So, if you can predict the fundamental data based on past calculations chances are very high you will be able to make a huge profit from this market.
Trading the reversal
Reversal chart pattern trading strategy is only designed for experienced traders. You might say, you know the details of the head and shoulder chart pattern but still, you should not trade this bearish reversal signal. Even after a valid break of the neckline of the pattern, the price often tends to move in favor of the bullish trend. Unless you can use the price action confirmation signal, you should never trade the reversal chart pattern. If you still strive to learn, use the Saxo demo account to develop your skills. Train yourself properly so that you can easily find the very best trades at any market conditions.
Setting the proper risk exposure is crucial to your success. You might know all the details of this market still you will have to lose trades. No matter how hard you try, you can’t avoid the losing trades. For this very reason, the experienced retail traders always work hard to minimize the risk factors in trading. Regardless of the size of your trading account, you should never risk more than 2% of your account balance. Try to stay on the safe side even though you know chart pattern trading strategy is extremely profitable. And try to learn new things from the experts so that you can improvise your trading plans at complex market conditions. Think smart to become a successful Forex trader.