There are many things you need to learn to earn money at trading. The naive traders are always trying their best to push themselves to the next stage. They are so biased with the leverage trading account that often forgets trading is all about finding high-quality trades with low risk. You need to follow the conservative approach so that you never have to blow up the trading account. But using a conservative approach is not enough to secure your trading career. You have to learn about the quality of execution of the trades. Unless you learn the trade with precision, you are not going to lead your dream life based on trading.
Let’s find some of the most important steps that can improve your trade execution. Follow the rules very strictly and start seeing the change in your trading performance.
Lower down the leverage
Some of you might be wondering, what’s the point of lowering down the leverage to improve your trade execution process. But if you get into the details for which the naive traders become aggressive with their trading approach the leverage factors will come. So, by lowering down the leverage, you are improving your trade execution process to a great extent. Most of the time the naïve traders are biased with the big profit factors that they don’t even care about the entry price. But if you look at the skilled trades, you will be surprised to know that most of the time they are placing the trades based on risk exposure factors. And when the leverage is low, you won’t have the chance to become a greedy trader and thus you will be more concerned with the execution process.
Use the demo account
Very few traders know the importance of a Forex demo account. The demo trading account is the perfect place to learn the art of trading. But for that, you must choose elite brokers like Rakuten who will provide the perfect learning curve. By using the smart tools of their demo account you can easily build a trading strategy. But for that, you have to practice at least for six months. The naive traders don’t have this patience and they look for the shortcut trading method. Eventually, they find a free online trading method and start placing random trades. Though they might earn some money at the initial stage, they will blow up the trading account since the system will not match their personality. Every trader is different and they need to create strategy focusing on their core need.
Learn the use of Fibonacci retracement tool
To improve your trade execution process, you must learn to use the Fibonacci retracement tools. Most of the time, the retail traders find it hard to change their life since they don’t know when the retracement will end. They often fail to identify the major trend reversal. But if you learn to use the Fibonacci retracement tools, you can easily find some good trades and make some big changes in your trade system. Most importantly, the execution process will be much more accurate and you will feel confident with your trading method.
Start using price action signals
You might be trading with the bars or line charts. But if you ever switch to the Japanese candlestick chart, you are never going to leave it. Based on the candlestick pattern, the traders can significantly improve their trade execution. They can also increase the lot size without taking too much risk. Since the trade execution is very precise, they can place the trade with a very tight stop. So, learn to use the candlestick patterns in real-life trading so that you don’t have to use a wide stop loss. Be rational and if required use the demo account to master price action trading skills. Once you become good at the candlestick pattern trading method, you won’t have to lose any trade.
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