Every trader should tailor their trading system with some basic investment rules. Trading is one of the most difficult tasks in the world and making a consistent profit is not all easy. Those who don’t work hard to develop a stable trading strategy are always losing money. You have explored different spread betting strategies to understand how the expert traders in the United Kingdom is making money. The new traders are more fascinated with the profit factors and they hardly emphasize on their trading system. Even after developing a solid trading strategy they become emotional and place big lot size trade to recover their loss. But this is not how you should trade this market. There are some specific rules which you need to follow or else you might even blow your trading account. Now we will discuss top three trading strategies that can change your trading career.
Trend following trading system
There is a well-known proverb in the Forex market, Trend is your friend. You have to follow the market trend to save your investment. Those who trade against the market are always losing money. In order to find the long-term market trend, you need to do your technical analysis in the daily time frame. Use the simple trend line tools to find the key support and resistance level. Some traders often use the trend line tools in an incorrect way. They force to join the higher lows or lower highs to get their desired trend line. Due to this fact, they are always losing money even after following the market trend. Never rely on your technical analysis while trading the trend. You have to do the fundamental analysis so that you can easily filter out the best trades. It will also help you to ride long-term market trend with a high level of precision.
Range trading system
Range trading strategy is one of the best spread betting strategies in the world. This is suitable for the day trader as they close their position on the same day. When the market hits a critical support level you need to execute your long orders. Similarly, if the price of a certain asset faces major resistance level, you can short the pair and make a decent profit. Though this system is extremely profitable you should never use this strategy during the high impact news release. Prior the heavy impact news, the market becomes extremely volatile and most of the breakout occurs during that time. However, if you trade with the market trend you can easily eliminate the risk factors to a great extent. But you need to understand the fundamental factors very well or else it’s better to stay on the sideline during the high level of market volatility.
News trading strategy greatly varies from traders to traders. Some professionals in the United Kingdom often says that News trading is extremely dangerous and it’s better to trade after the massive impact of the news. But if you can learn technical and fundamental analysis with a high level of accuracy you can easily trade the news and make a decent profit within a short period of time. Try to learn price action trading strategy and use the price action confirmation signal in the lower time frame to trade the high impact news. Some of you might say the false spike often takes out your trades. You can easily eliminate this problem by using multiple time frame analysis. Becoming a successful trader in the retail trading industry is not all hard. You need to follow the basic rules of investment.
By following these three trading systems you can greatly improve your trading performance. But make sure you are always trading the market with proper money management. Never try to become Forex millionaire by trading with a big lot. Always stay safe and trade with a small lot.