Trading can be challenging. In fact, 95% of the traders are losing money. Those who are making money consistently are the smart traders with excellent knowledge about this financial industry. However, sometimes the intermediate traders often get frustrated since most of their trades hit their potential stop loss. Once they are out of the market the price again starts to move in favor of them. So what possibly went wrong? Some traders often blame the market and tell that the nature of this market has fully changed and no one can really make any profit. But if you look at the successful traders in the United Kingdom then you will notice that most of their trade is hitting their potential take profit level. Today we will discuss some amazing tips to save your running trades from getting hurt by the market wild swings.
Most of the short time frame traders are the victim of such type of problem since they use an extremely tight stop loss. But instead of using the lower time frame if you do your technical analysis in the higher time frame then you will see a dramatic improvement in your trading career. There are lots of false swings and spikes in the lower time frame which is very hard to filter out. But in the higher time frame, we have stable price movement and trading signals. However, it’s true that if you use the lower time frame to trade the market then you won’t be able to execute too many trades. In fact finding a single good setup will be hard for you. But this actually needs to become a successful trader. You need to focus on quality rather quantity. So make sure that you start developing strong patience to master the higher time frame trading skills.
The retail traders in the online trading community use too many indicators to trade the market. But instead of depending on indicators reading you should start using the Fibonacci retracement tools in your trading platform. By using the Fibonacci retracement tools you can easily trade the market in favor of the prevailing trend but this doesn’t mean that you will be trading all the retracement levels. Always trade the 32.8%, 50% and 61.8% retracement levels of the market. Instead of using tight stop loss always use the 61.8% retracement level to place your stops. If possible use the price action confirmation signal to execute your trade. But this system is very much similar to position trading system and you can’t really over trade the market.
Take break from your trading career
Sometimes break is the only solution to get back to your trading form. At times you will be tired of your regular trading life and this is when you will start doing a mistake. So if see that your trades are frequently stopped out by the market movement then make sure you take at least one week break from your trading. During your vacation time, you should work with your psychological development. Having all the required knowledge in the financial industry is not going to make you a profitable trader. You also need to give yourself some time so that you can develop your mental strength. During your break time, you can read books and articles on trading so that you can train your mind to deal with the losing trades.
Becoming a professional trader is just like winning a war. You have to train your mind to accept the losing trades and most importantly you have wait for hours and hour’s one single trade setup. If you don’t love this industry then you can never really make any progress. You have believed that this market is the right place for you and only then you will be able to make a decent profit.