Top three tools used by the professional traders
Trading is one of the most sophisticated professions in today’s world. Having access to the online trading industry doesn’t mean we are going to make a huge profit from this market. If you do some research you will be surprised to see only 5% of the traders are successful in spread betting profession. In order to lead your dream life, you must be careful about your trade execution. Regardless of your knowledge, you will always have to face some losing trades. In order to win more than 50% of the time, you have to use the best tools in your platform to find the best spots. Let’s learn about the advanced tools used by the experienced professionals.
Fibonacci retracement tools
Fibonacci retracement tools are the best tool to trade along with the trend. There is saying in Forex market, always trade with the market trend. The rookie traders always try to trade the reversal and lose a significant portion of their investment. They never understand the importance of trend trading strategy. But the experienced traders always uses the Fibonacci retracement tools to find the key levels of the market. Though we have many retracement levels, it’s better to trade the 50% and 61.8% retracement levels. Instead of setting pending orders, you need to use the price action confirmation signal. Price action trading strategy is often considered as the best trading system in the world since it allows the novice traders to limit their risk exposure.
Use of 100 and 200 days SMA
Moving average is a very popular tool among the professional traders. It allows the traders to find the dynamic support and resistance level. But if you know its advance use, you can easily find the key reversal point of the market. Though we can use a different value of moving average it’s better to use the 100 and 200 days SMA. If the 100 day SMA crossover the 200 day SMA we considered it as a bullish reversal signal. On the contrary, if it crosses below the 200 days SMA we consider this as a bearish signal. Some of you might be using the 100 and 200 SMA in the lower time frame but you have to understand lower time frame trading is extremely risky. However, if you can truly master the art of multiple time frame analysis, you can easily make a huge profit by filtering out the false trade. In spread trading profession, you can significantly improve your winning edge by using the 100 and 200 days SMA.
Bollinger band indicators
Bollinger band indicators are the best way to trade the ranging market. Prior to the use of Bollinger band indicators, you have to know the past trend. So why do you need to know about the past trend? The idea is very simple. You can’t trade the upper and lower band at the same time. You need to place your trade in favor of the past trend. Most of the time the major breakout occurs in favor of the past trend and it saves the traders from losing a huge amount of money. If you want to use the Bollinger band indicator in the lower time frame, make sure you use price action confirmation signal to execute quality trades.
Those who really want to master spread betting should know these three-technique. It’s true the new traders will find it hard at the initial stage but you are always welcome to demo trade the market. Use the demo trading environment as your practice field. Trade as long as you want but never switch back to your live trading account unless you have made a profit for six consecutive months. Spread betting profession is just like our tradition business. We have to follow some guideline to make a consistent profit. Try to act smart to become successful in spread betting industry. And never take a huge risk to secure big profit.