Professional traders are always one step ahead. They are not relying on the regular rules to make a profit. Most successful traders have their unique trading strategy which allows them to make a big profit without risking too much money. On the contrary, the rookies use a weak strategy and fail to manage their trades. Eventually, they blow up the trading account within a short time. And some of them often think this market is manipulated.
Trading should be done professionally. In this article, we are going to discuss some amazing technique which will allow you to manage the trades professionally. Follow these tips as they will make you a successful trader.
The risk to reward ratio
The minimum risk to reward ratio for the trade should be 1:2. If you trade with a negative or 1:1 risk to reward ratio, it will be a big challenge to cover up the losses. After losing a trade, you will be forced to trade with high risk since you know the winners are not bigger than the losers. By choosing a strong risk to reward ratio in the trades, you are creating the unique scope to embrace losing trades. Some experts often trade with a 1:6+ risk to reward ratio. So, if they lose 6 trades, they can easily cover up the losses by winning one good trade.
Learn about price action strategy
Price action trading strategy is based on the Japanese candlestick pattern. The retail traders focus on different trading techniques and look for the potential entry and exit points by using the Japanese candlestick pattern. But mastering price action trading strategy is not an easy task. Unless you follow a standard protocol, you will think price action trading strategy is the most different trading system. Learn about the single candlestick pattern at the initial stage. Once you become comfortable with the single candlestick pattern, study the complex pattern. Integrate price action trading strategy into your system so that you can trade with more confidence. Join the social trading network and learn the details about online trading Australia. Connect with the skilled traders and use their suggestion to improve your learning ability.
Be aware of the news
The rookies never give any importance to the high-impact news. Some of them keep their trade open expecting the news will go in their favor. But this is a very big mistake. If you want to keep your trade open during heavy impact news like NFP, interest rate change decisions, ECB press conferences, you need to have the skills to evaluate the news. Once you professionally evaluate the news, you will know which trade has the potential to generate a big profit. Most importantly, you develop the courage to cut the running trades to protect your trading capital. But be careful about the risk to reward ratio. Never close the trades with fear as it will make things harder at trading business.
Use a robust trading platform
Very few traders give importance to professional brokers. But every successful trader always trades with high-end brokers. They never rely on the low-end brokers since they know they will not get access to the professional trading platform. So, chose your broker very carefully so that you get access to a high-end platform. By using the high-end trading platform, you can easily improve your trading skills and make smart decisions in the market. Test the performance of the trading platform in the demo account. If you feel comfortable with their offered tools, use them in the real market.
Without learning to manage the trades, it is impossible to make consistent profits. You have to prepare yourself by learning the technical and fundamental factors. Once you become skilled in market analysis, you can easily manage your running trades. Last but not the least, never take any decision based on emotions.