A Simple but Profitable Way of Trading
A Simple but Profitable Way of Trading - Along with the development of the times, this has influenced the way assets and finances are managed by economic actors in the world.
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If you are someone who is involved in the modern financial, of course you are familiar with trading. However, do you already know how to trade that is simple but profitable?
Trading itself is a short-term trade that can bring big profits in a short time due to high trend changes. Even so, the chance of experiencing a loss is just as great if you quickly run out of capital. That is why trading is often referred to as a high-risk trade.
Before trading, generally someone who is interested in the business world has heard several terms such as forex, stocks or commodities. Even so, you can't go straight to that stage because you have to start from the lower level first. Even then, if you want to be successful and make a profit, then starting trading from scratch is not something that should be doubted.
A Simple but Profitable Way of Trading
Even though it has a high risk, it doesn't mean that the chances of getting profit for beginners are very small. As long as you know the tips, then you can do a simple but profitable trading method.
Then, how do you trade that isn't heavy but can still make money? Here comes the explanation!
More Selectively Using Indicators
The first tip you need to do is choose the necessary trading indicators. You need to know that the function of the indicator on the forex chart is to manage trading formulations so that they are the most profitable. Basically, there are many indicators that can be used, such as trend confirmation to choose the trend direction to choose or trend following to show real time price movements.
When you find out about the uses of each of these indicators, you will think that all of them are important. So it's no wonder that most novice players choose to install lots of tools on their trading charts because they are impressed with their functions.
What you need to understand is that when too many tools are installed on the chart, it will actually have a bad effect on your trading. Better yet, use indicators that you really need as a beginner, so you won't be confused with indicator signals that can cross each other. That's a simple but profitable way of trading and must be considered by beginners.
Avoid Low Time Frames
Basically, trading charts are indeed presented in various time frames. All of them have their own characteristics and functions, but one thing for sure is not to follow the time frame below H1 (1 hour).
This is because the lower the time frame that is used as a guideline, the faster the recorded price movements. If the movement is fast, it will be difficult for you to do the analysis. Not only that, it will be more likely if you identify on a high time frame, so you can make simple but profitable trading methods.
Open a position only when an entry signal appears
At first glance, this method of trading does seem easy in theory. However, in fact many traders find it difficult to open positions based on entry signals. If you want to become a profitable trader, then you need to adhere to these tips regardless of the situation.
Try not to open a position if the entry requirements have not been met, even if you are experiencing a loss or there is a good opportunity. If you follow these trading rules, then you will be able to recognize the best opportunities to open positions.
Create a Trading Journal
The next simple but profitable way of trading is to keep a trading journal. Often, this one tip is considered not important for some traders. This is because they do not know what impact can be had if they diligently keep a trading journal. It should be noted that if you want to last a long time in the world of trading, then don't underestimate the activity of keeping a journal.
Recording every core of your trading activities every day is the best step to make a profit. By keeping a trading journal, it will be easier for you to evaluate and develop trading skills. The evaluation referred to here is that you can find out the location of mistakes and which positions are profitable, so that in the future you can act even wiser.
Thus the discussion on how to trade that is simple but profitable. Hopefully the explanation above can give you enlightenment in trading. Even though you are a beginner, it doesn't mean you don't have a great opportunity to become rich through trading activities. By following the tips described above, it is not impossible for you to achieve big profits.