The expert traders know how to use the market volatility in their favor. They always make sure they are executing trades with managed risk and trading the market with high-risk reward ratio. But sadly the novice traders always do the opposite. They fail to interpret the price movement of the currency pairs and execute low probability trades. In fact, they never asses the risk factors of the market. Due to this fact, they are always losing money in the Forex market. In today’s article, we will give you some useful tips which will help you to trade the market even during the high impact news.
Lower down your leverage
Leverage is often known as double edge sword. The new traders never really understand how it affects their trading career. They are busy placing random trades without knowing the possible consequences. Controlling your emotions will become really hard if you focus your profit factors. A few losing trades will drive you crazy and force you to trade with huge risk. But if you simply trade with a low leverage trading account, you can’t take the huge risk even though you will be dying for it. But after a few days, you will understand how lucky you were by not placing the high-risk trade.
Change your mentality
It’s highly imperative you have a stable mindset as a currency trader. Those who trade with emotions are always losing money. Developing yourself as a currency trader is not all easy. You have to train your mind to embrace the losing trades. At times you might be wondering this market is totally manipulated. But always remember this is the only market free from manipulations. Even the mighty president of the USA can’t change the price of a certain asset. There are too many variables and manipulating all the factors is not possible for a certain individual. So always consider the probability factors of this trading industry.
Trade with a reputed broker
You must open Forex trading account UK with a reputed broker to execute trades in a volatile market. Most of the time you will face requotes and heavy slippage as a client of the average class broker. Due to this very reason, the expert traders always chose well-regulated broker like Saxo since they offer premium trading environment. Even during the U.S interest rate decision, you can easily scalp the market and make a decent profit. But don’t think an elite class broker will make you a successful trader. They will just ensure the perfect trading environment and you will have to do all the hard work.
Multiple time frame analysis
Multiple time frame analysis is very useful when you trade in a volatile market. The novice traders don’t even know how to assess the different time frame data and come to a conclusion. They simply focus on the lower time frame trade setup and loses a significant portion of their investment. But if you do some hard work, you can easily learn multiple time frame analysis. This will help you to filter out the best trades. At times you might have to face an extreme level of difficulty but face such situations with confidence.
Waiting in the sideline
Trading the volatile market requires an extreme level of dedication. The aggressive traders can never make a profit by trading the news. At times they might get lucky but in the long term, they always lose. You have to stay on the sideline and wait for a clear trade setup. Analyze the technical and fundamental data to become a profitable trader. Never think you will be able to make tons of money with your gut feelings. It’s not a casino rather it is the most sophisticated investment business. So try to understand how this market works and take rational steps. Analyze the risk factors and consider the worst case scenario before placing any trades.