There are many ways to earn money in the trading business. Most of the time, investors prefer to use the scalping method. The scalping strategy is only for the naïve traders since it’s very hard to take the extreme stress associated with the scalping method. However, many experienced investors in Hong Kong are still using the scalping strategy to make a profit. But we are not going to discuss the scalping method as the trading result greatly depends on the trader’s skill and market condition. Let’s discuss the position trading strategy as it helps the traders to take the perfect decision without getting exposed to high risk. After you finish reading this article, you will get the idea to create your scalping method.
You need to learn about the key swings of this market to become a professional scalper. So, how can we find the key swings in our trading chart? If you notice the price movement, you will see massive ups and down in the bigger period. The peak and the bottom of the swings are not as the swing high and low. If the market prints higher high, you can expect it as a bullish trend. On the contrary, when the market starts showing higher lows, it’s a classic sign of a bearish trend. So, you now know the importance of analyzing the key swings in the market.
Using the practice account
You must learn to the art of Forex trading by using the practice account. You might think the conservative trading approach is much safer and you don’t have to rely on the demo account. Though the position trading system is one of the safest ways to execute the orders you must learn to use it in the demo account. Demo trading accounts are perfect for learners. Those who don’t have the patience to demo trade the market should never try to become a professional trader. But make sure you are not executing any orders without demo trading the market for 3 months. These three months are very vital in your life since you will learn lots of new things about the position trading method.
Trading the key zone
Trading the key zone should be the prime concern of the position trader. Most of the time the position traders stick to the trade even though they have executed the orders in the minor zone. You must learn to find the critical support and resistance level or it will be nearly impossible to make a profit from this market. Things might be tough for the new traders but it is the only way to secure big profits. To change your life, you should focus on the major support. And without trading the major support you can’t call yourself a position trader.
Write down the rules
You must write down the rules for your position trading strategy. So, far we have told you how the position trading strategy works. It’s time for you to use these guidelines and create the rules. During the development process of your trading system, you need to focus on long term goals. Some of you might try to create the system by using the real account. But if you do so, you are going to lose most of the trades. Think about the safety of your investment. You should never risk your real balance while developing your trading strategy. Unless you feel comfortable with your position trading method, you should never stop trading the demo account.
The position trading method is most designed for safe traders. Though it limits the profit factors to a certain extent it is the only way to reduce mental stress. Taking too much stress in trading is more like exerting heavy pressure on a glass. We all know what will happen to the glass when it faces heavy pressure of blow. So, stay relaxed and use a position trading strategy.
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