Trading the volatile market is extremely hard. Many novice traders have blown their trading account during the high level of market volatility. In fact, you should always stay on the sideline when you are not certain about the price movement for a particular period of time. For instance, most inexperienced traders lost their investment during the Brexit event. On the contrary, the expert traders made a decent profit by shorting the Sterling in the global market. Trading the volatile market requires an extreme level of knowledge and patience. However, if you can follow some advanced tips you can also trade the volatile market like pro trader.
Find the key support and resistance level
The Forex market always respects the key support and resistance level. Those who trade the lower time frame always loses money due to minor support and resistance level trading. For this very reason, the experienced professionals always suggest the new traders trade the higher time frame. During high level of market volatility, you should never trade the lower time frame. But this doesn’t mean you will always be able to make a profit at the key levels. At times, the long-term market trend changes prior to the high impact news release.
Trade with the reputed broker
If you want to trade the high impact news, you must trade with the reputed broker like ETX Capital. The low-class broker will never give you the precise price feed during the high level of market volatility. This will eventually increase the risk factors. Moreover, the spread is insane in the most traded currency pairs prior to the announcement of high impact news. Some of you might not understand the importance of premium trading environment but if once you trade with the elite class broker, you will understand the difference. The premium broker will ensure your fund’s safety and most importantly they are constantly working hard to give you the best trading environment. Unless you have access to the robust trading platform, trading the volatile market will be extremely hard.
Learn multiple time frame analysis
We all know the price action trading system is one of the best ways to trade the live market. The expert price action traders use the different formations of the Japanese candlestick pattern to execute high-quality trades at the key levels. During high level of market volatility, if you can use price action signal you can dramatically improve your winning edge. But this system will work best when you use the multiple time frame analysis. Multiple time frame is one of the most advanced ways to filter out the false trade setups. So try to learn multiple time frame analysis to become a professional trader in the volatile market.
Limit your risk
Money management will always protect your investment. If you trade with high risk, it won’t take much time to blow your account. Trading is nothing but dealing with the probable trade setups. If you consider a certain spot to execute the best trades, you might take a huge risk. But this is not the professional way to deal with the Forex market. You should always consider the loss factors of this market. Be prepared to deal with losing trades or else it will be really hard for you to make a profit. When it comes to the volatile market environment, you should never take more than 1% risk. Learn to scale your trade so that you can maximize your profit without compromising the profit factors.
If you can follow the above tips of this article, you will see a dramatic improvement in your career. The more you will trade, the better you will understand. But this doesn’t mean you will be taking a huge risk in each trade. You have to create a simple strategy to trade the volatile market. at times, you will face losing trades even doing all the analysis perfectly.