Who doesn’t want to become a millionaire in this world? Everyone is looking to make their life better by creating a steady source of income. Choosing the right profession is very hard due to the high level of market competition. However many traders in Australia have secured their dream life by trading the financial instrument. Forex trading is one of the best profession in the investment industry which has the potentiality to change your life. But there is no shortcut way to become a rich person. You have to learn all the fundamental factors of the market to become successful at currency trading. All the retail traders have their trading system. Do you think that they have optimized trading strategy? The simple answer is NO. Let’s learn how to optimize our trading strategy to become a successful trader in the Forex market.
Use daily time frame
The daily time frame is the perfect way to deal with your trade setups. If you stick to the lower time frame data, it’s very obvious you will have to face lots of false trade setups. In order to avoid such conditions, the experienced professionals in the Australian trading community always prefer to trade the longer time frame data. Things might sound very easy but in real life trading, it is extremely difficult. First of all, you have to identify the long-term market trend. Once you have successfully identified the market trend, it’s time to find the key support and support and resistance level. Support and resistance level are the potential trading zone and the expert uses it to execute their orders in the market. The novice traders will set pending buy and sell orders at the key support and resistance level but this is not how the professional traders execute their trade. The use other trading parameters to minimize their risk.
Use of Japanese candlestick pattern
The expert traders improve their entry and exit accuracy by using the Japanese candlestick pattern. In the CFD trading industry price action trading system is widely popular for its simplicity and reliability. In order to optimize your trading strategy, you have to learn the price action trading system. There are many different kinds of candlestick patterns which the pro price action traders use. Being a novice trader you don’t have to worry about tons of patterns. Just learn to use the most reliable price action confirmation signal. Look for potential price action confirmation signal at the key support and resistance level. Once you have spotted a reversal signal it’s time to check the risk-reward ratio. You must trade the market with 1:2+ risk-reward ratio or else it will be very tough for you to deal with your losing trades.
Use the fundamental factors of the market
Now you know how to find the best entry-exit point of the market based on technical data. But things are not yet finished. The news is the essential elements which cause a high level of market volatility. You might be wondering how to use the fundamental data and maximize your profit. The idea is very simple. Fundamental data will tell you the overall story about the economic performance of the certain country. Based on the fundamental data you can easily determine which trade you should carry for a long period of time.
Learning from your mistake
Learning from your trading mistake is the easiest way to optimize your trading strategy. You have to write down the details of each trade so that you can assess your trade history during the weekend. Try to find faults in your system and it will help you to understand the market much better. Never commit the same mistake again. You have to throw your emotions while executing any orders in the live market. Follow your trading rules blindly and trade the market with low risk. Never try to become rich with big lot size trades.