Becoming a skilled trader is not as easy as it seems. Thousands of traders have tried their best to become the top traders in the world. Sadly, only 2-3% of the traders are successful. Most of the traders are reading generic tips to enhance their knowledge. What they don’t realise, the technical approach to trading plays a crucial role in their success. To be the best, you must be sound at technical analysis. Knowing about the support and resistance level is not enough. These are the most basic things and everyone has fair knowledge on these topics.
Today, we will give you six technical tips that are often ignored or neglected by the traders. After reading this article, you will feel more confident with your trading approach. Most importantly, you will find the key reason for which you are losing money as a trader. Let’s explore the technical tips to enhance our knowledge.
1. Learn to use the Fibonacci tool
The first thing you should learn is the use of Fibonacci tools. Most of the traders are so biased with the technical indicators that they often forget to use the tools proficiently. But if you learn to rely on the critical market dynamics professionally and take the trades with the help of the Fibonacci tool, it will be an easy task to make a consistent profit. Most of the traders don’t know they can find the endpoint of the retracement with the help of a simple Fibonacci tool. So, learn to use the Fibonacci tool in the practice account and you will become more confident with your approach.
2. Leading and lagging indicators
Everyone needs to know about the key difference between the leading and lagging indicators. If you take the trades without analysing the leading and lagging indicator, it will be a tough task to make a consistent profit. Leading indicators will generate early signals and the lagging indicators will generate late signals for the traders. So, if you don’t know to decipher the key difference between leading and lagging indicators, you won’t be able to execute quality trades. Read more online trading tips and you will notice some professional traders have highlighted the key difference between these two types of indicators. Learn these factor and you will be able to fix the things in the perfect order.
3. Portfolio analysis
You must have the skills to analyse the portfolio of successful traders. Some of you might not know where to find professional traders. But we have an easy solution for them. If you access ZuluTrade, you will find many professional traders who have strong analytical skills. Things might seem hard at the initial stage but once you learn to analyse the portfolio of the rookies, you will be able to experts, you will be able to trade with a high level of precision. Trading is not a complex task provided that you know the proper way to analyse the portfolio. By learning to analyse the portfolio of a successful trader, you will be able to improve your skills to the next level.
4. Fundamental indicators
Many intermediate traders are having trouble with investing in derivatives. They don’t know how to analyse the fundamental factors of the market and thus they are losing money most of the time. But if you study the portfolio of the professional traders, you will notice that they are using some simple technique to analyse the news factors. For instance, many traders use the COT indicator to study the behavior of the market. Though it might seem a complex job for the retail traders they can easily master this technique by learning the core elements of trading. Before you start learning to deal with the technical indicator, open a paper trading account so that you can learn its use properly. Don’t get biased by seeing the functions of the technical indicators. Learn its use properly before you can take advantage of such tools.
5. Automate a portion of your method
To improve your skills, you must automate a certain portion of the trading method. For instance, you don’t have to analyse the chart 24 hours a day. Install an alert indicator and it will do all the hard work. Most of the time, the traders don’t have any idea how to deal with complicated EAs and bots. But this can be done in a very easy way and the traders won’t have to depend on the complex nature of the market. We are not asking you to create a complex EAs or use it to automate the trading process. All we are saying, you need to embrace modern technology as it can reduce the stress at trading. When you trade with less stress, you can perform much better.
6. Learn to program the EAs
Being a trader, you won’t have to spend huge time analysing the market. If you become a fulltime trader, you should learn to program the EAs as you can analyse massive data with simple lines of codes. You might not have any programming knowledge but you can always use the free resources to educate yourself properly. Mastering to program the EAs is not as tough as it seems. Be determined and you will be able to become good at programming the EAs.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.