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How to trade the major trend line like a pro trader

Talk about Everything Forums Money How to trade the major trend line like a pro trader

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    Priyana Satpo
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    Trend trading strategy is one of the most effective ways to make a profit in the Forex market. All professional traders use the major trend to execute high-quality trades. Unlike them, the rookie traders are always executing trades against the major trend and losing a big portion of their investment. If you intend to lead your life based on trading, it’s highly imperative you learn to trade the market with the trend. Though there are many ways to trade the major trend, we will highlight some amazing technique which will help you to trade the market with the trend like a pro trader.

    Daily time frame analysis

    Being a rookie trader, it’s very obvious you will analyze the lower time frame data. Analyzing the lower time frame data is one of the key reason for which the rookie traders loses a big portion of their investment. You have to look for potential trade setups in the daily time frame. To find the bullish trend line, you need to connect three higher lows in the market. Similarly, connect three lower highs in the daily time frame and you will get your bearish trend line. Once you have spotted the perfect trend line you can easily execute a trade and make a decent profit from this market. But if you follow the same process in the lower time frame, you will end up by trading the market with minor retracement.

    Learn the use of candlestick pattern

    You need to learn price action trading strategy to trade the major trend line with an extreme level of accuracy. Things might seem a little bit difficult at the initial stage but if you rely on proper logic, you can easily learn to the art of price action trading strategy. If necessary visit https://sec.rakuten.com.au/ and open demo account with Rakuten broker. Use the demo account to develop your price action trading skills. Once you know the most reliable price action confirmation signal, try to find those patterns right at the trend line. Though the system is extremely profitable, you should never risk a huge amount of money in each trade. Trading is all about managing the risk exposure in the best possible way. Stop making things overly complex by using the price action trading strategy.

    Analyze the high impact news

    The new traders always think the trend is absolute. But the long term market trend often gets changed due to the high impact news. For instance, if you spot a bullish trend in the EURUSD pair, the bears might take control of this market at any moment based on major news. If the FED hike their interest rate, it won’t take much time to see a fresh bearish trend in the EURUSD pair. So, you can’t find great trades in favor of the market trend based on technical data. Master fundamental analysis skills to become a trend trader.

    Manage your risk factors

    Learning to trade the market with the trend is not all hard. But still, the rookie traders are losing money since they don’t know the proper way to manage their risk exposure. Regardless of your trading skills and experience, you should never risk more than 2-3% of your account balance. Follow the conservative trading technique so that you can find the best possible trades at any market condition. Forget about the aggressive trading strategy since it always results in heavy loss. Trading is nothing but a business. If you fail to manage the risk exposure, you are most likely to lose money. Try to create a perfect trading strategy so that you can make a profit and ride the market trend with an extreme level of ease. Take your time and focus on the nature of this market. Use your intellect and trade the market with proper discipline.

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