Three Effective Rules to Trade the major Trend Line

Three Effective Rules to Trade the major Trend Line

Everyone knows a trend trading strategy is the most effective way to make money online. Being a rookie trader, it will be very hard to ride the market trend. Unless you learn the technical, fundamental and sentiment analysis of this market you can’t ride the trend. The new traders in Hong Kong don’t even know the proper way to find a trade. You need to connect three higher lows in the market to find the bullish trend line support. Similarly, if you connect three lower highs in the market you can find the resistance in the market. You might be surprised to know the easy way to find the trend line but this become little bit complex when it comes to trend line trading strategy. Let’s learn some easy way effective way so that we can trade the major trend line with an extreme level of precisions.

Use the price action signal

You need to use the price action signals to trade the major trend line. You might think trading is all about support and resistance level. But in reality, the candlestick pattern plays a great role when it comes to trading success. If you trade the market with the basic formations of the Japanese candlestick pattern you will have better win edge. For instance, to trade the bullish trend line, you need to find a bullish price action confirmation signal. Similarly, when it comes to the bearish trend line, you need to find the bearish trend line in the Forex market.

Limit your risk factors in trading

Being a rookie trader, you need to find a reputed broker to ensure a professional trading environment. Once you have access to a great broker, try to trade the major trend line with low-risk exposure. Though trend line trading strategy is extremely profitable still you need to limit the risk exposure in every possible way. Things might seem a little bit challenging at the initial stage but once you learn to trade the market with proper discipline you can easily make a living out of trading. Always remember, no trend is perfect. So, if you trade the market with high risk, you are bound to lose a big portion of your investment.

Learn from your trading mistakes

To become a professional trend trader, you must learn from your trading mistakes. You need to become a student of this market or else it will be really hard to change your life. Trading is an art. You have to maintain a trading journal so that you can assess the losing trades during the weekend. Being a trend trader you will often lose trades during the high impact news. The new traders don’t understand the fact, news factors are the most powerful price driving catalyst in the forex market. So, if you intend to learn from your trading mistakes, you must learn to trade the market based on fundamental analysis. Blend your trend trading strategy with fundamental analysis and you will be able to find great trades.

Trade with confidence

The professional trend traders always trade the market with confidence. If you want to improve your trading skills, you must trade the market with confidence. Never think you can change your life without doing the proper work. Keep on learning about the retail trading business and try to master the price action trading strategy. Demo trade the market for the first few months so that you can easily develop your trading skills. Once you have the right skills you can easily change your life just by trading the market with a high leverage forex trading account. No matter what, never trade the market against the market trend line. If required use the Fibonacci retracement tools since it will boost your confidence level in the retail trading business.

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