Things you need to know about the stocks trend
There are a few things you need to learn at trading. The professional traders always encourage the new traders to develop their skills from scratch so that they can trade the market with rational logic. However, it’s also very possible to become a professional trader while studying through trading platforms and looking at something like these motley fool stock advisor reviews alongside. Without trading the market with a strategic approach it’s really hard to make a big profit from this market while thinking about the long-term goals and try to improve your trading skills. Learn about the basic terms at trading so that you don’t have to lose money while placing any trade. If don’t feel confident enough to pull this off by yourself, it would be worth reading reviews similar to this ig trading review so you can have support in making your trades.
The trend trading technique is always preferred by the skilled traders at Saxo. But very few traders in Hong Kong knows the perfect way to trade with the major trend. Most of the time, they are dealing with the indicators reading and eventually failing to predict the trend. Let’s explore the INS and OUT of the trend in the Stocks market.
When the price of a certain asset rally higher, we call as a bullish trend. In an uptrend, the market makes a series of higher highs associated with the lower lows. The traders need to find the critical support level to execute long orders in favor of the trend. But when you trade the bullish trend, you need to carefully find critical support in the market.
The bearish trend is defined by the downward slope of the price. When the price makes successive lower highs in the market, you need to look for the short trade setups in the trading platform. Most of the time the traders at Saxo use reliable price action signals to execute the short trades. Though it’s a very profitable way to earn money, you need to be careful with the trade execution process.
Execution of the trade
Execution of the trade is a very complicated task for the naïve traders. But if you learn to draw the trend line in the trading platform, you won’t have to depend on the skilled traders. A bullish trend line can be drawn by connecting three lowers high in the market. On the contrary. Connect three higher lows in the market to draw the bearish trend line. The bullish trend line act as the critical support level and the bearish trend line act as your resistance zone. Based on the formation of the trend line, you need to for the trade setups
The traders love to trade the trend line when the price test the support or resistance level for the very first time. But the pro traders always rely on the price action signals as it allows them to make a big profit from this market. Being a fulltime trader, you need to think about the conservative trading approach. Never try to trade with high risk since it will ruin your trading career.
Analyze the major news
To trade the trend line, you need to trade the major news. Those who don’t analyze the major news often lose money due to the change in the trend.
If you notice the price is not trending higher or lower, you are having a ranging market. To trade the ranging market, you need to know about the past trend. Try to trade the market in favor of the past trend since most of the ranging market tends to favor the past price movement. However, you need to use the higher time frame to trade the major breakout in the ranging market. To make things easier, you need to use the Stocks demo account to learn more about a range trading strategy. However, if you find things hard, stick to the trend trading method only.