Retail traders are always looking for complex trading methods to earn more money. In fact, some of the retail traders often buy expensive trading systems from professional traders and expect to make a big profit in this industry. But if things were so easier, no one would have lost money in the trading industry. You need to train yourself properly and only then you will be able to execute high-quality trades. Being a novice trader, you should not work hard to develop a complex trading strategy. Try to curate a simple trading technique so that you can trade at the important support and resistance level.
So, is it possible to trade at the major support and resistance level with a high level of accuracy? Well, the obvious answer is YES. Follow the tips mentioned in this article and you should be able to execute the quality trades without having any trouble.
Drawing the support and resistance
To draw the support and resistance line, you need to connect three swing highs or lows. Without connecting the important levels in the market, it will be really tough to make significant progress in your life. Instead of trying to learn the proper way to draw the support and resistance level in the real market, use a demo account. Learn to develop your skills in the demo trading account so that you can don’t have to lose any real money. Once you master this technique, you should learn about the price action trading strategy.
Candlestick pattern trading
The professional traders at Saxo Forex broker always look for reliable candlestick patterns at the important support and resistance level to execute their trades. If you manage to learn about the pin bar or the engulfing pattern, you should be able to take your trades with a high level of precision. Never think you know everything about this market. Follow a safe protocol and take your trades in a strategic way so that you can earn enough money without having much trouble. While using the candlestick pattern, try to rely on the higher time frame data.
Use stop loss
If you want to make a consistent profit by trading the support and resistance level, you should learn to use the stop loss in an effective way. Without learning to use the stop loss, you will keep on losing money and eventually blame the market. The novice traders often make things messy and try to earn a big profit by ignoring the basic rules. Eventually, they lose a big portion of their trading capital. To avoid such problems, start using the stop loss from the start. But make sure you place the stop loss in such a way so that you don’t have to lose more than 2% of your account balance.
Use the moving average
To trade the important support and resistance level, you may also use the moving average. If you take the trades with the help of the moving average, you should be able to filter out the bad trade signals in the market. For instance, if you execute a long trade, the slope of the moving average should be positive. On the contrary, if you execute a short trade, the slope of the moving average should be negative. Thus you will know the proper way to take your trades without having much trouble.
Learn about the news factors
You should also learn about the new factors to protect your trading capital. People who trade the market based on the news analysis, always do well in the trading business. If you want to change your life, we strongly recommend that you give importance to fundamental analysis. Without giving priority to the fundamental factors of the market, the traders will keep on losing money. So, take your time and learn to analyze the news data with a high level of precision. This will help you to trade at the major support and resistance level.