The importance of having a balanced ETF trading method is enormous. Using a rubbish system to try to earn money from ETF trading never works. In fact, you can’t secure consistent profit with a system that can’t generate low-risk trades in the market. You have to find a system that can deal with the losses and help you to make money without any hassle. New Singaporean traders might be wondering how come they can ensure the profit potential when they face losing trades. The answer lies within the risk to reward ratio. You have to ensure the winners are always bigger than the losers.
There are a few amazing techniques that you can follow to develop a well-balanced trading system. Read the article very carefully and you will be able to execute high-quality trades. In a nutshell, let’s learn how to create a robust trading system.
Selection of the time chart
You need to know the importance of a higher time frame trading method. Trying to create the trading method in the lower time frame is a very risky approach. In fact, you won’t be able to execute quality trades and lose money most of the time. If you can follow the daily or weekly time frame analysis, the process will become easier. In fact, you will feel more confident about your trading approach.
Some traders often ignore the higher time frame data since they consider it as a waste of time. Since they have to wait for a long time, they prefer to trade the lower time frame trading signals. But to trade the lower time frame, you must gain access to a robust platform. Visit their website here and learn more about Saxo. They can offer you a free demo account so that you can practice trading for free.
Learning to find the trend
You must learn to find the trend properly to trade with the trend. Unless you are taking the trades with the major trend, it will be a tough task to make significant progress in your life. Knowing about the different stages of the trend is not all complex. If you can follow the basic rules and stick to the money management plan, you will be able to create a perfect trend trading method. When you look for the trend, use the daily or weekly time frame. Trying to trade in the lower time frame always results in a loss. When you try to find the trend in the lower time frame you will get confused.
There are different stages in the trend. If the analysis is done in the lower time frame, the chances are very high that you will be taking the trades in the favor of the retracement. The recommended time frame to use the trend line tool is in the daily time frame. Since you will take trades in the ETF market, you can focus on the weekly or even monthly trend. By choosing a higher time frame, you will feel more confident about your trading approach.
Incorporate price action signals
If you focus on the price dynamics for a few months, you will learn the key way to take the trades. But this is not the end of learning. You have to incorporate the price action trading method into your existing trading strategy so that you can make a big profit without increasing the lot. The reason for which the price action trading method is so popular among rookies is the tight SL. By using the price action confirmation signal, you can trade the market with discipline and secure a big profit without having any trouble.
Learning to analyze the bars of the price pattern might seem tough. But you do have the demo account to practice in. Once you become good at analyzing the price dynamics, it won’t you take much time to develop your skills.
