Professional traders have excellent trade management skills. They know the proper way to evaluate the market data. Usually, they take their trades at the important support and resistance level as it allows them to make significant progress in their life. But if you carefully assess the key steps of a novice trader, you will notice that they don’t have the basic skills. Usually, they are taking their trades in an aggressive way, and still, they are losing money.

To become good at trading, you must learn to take the trades at the important support and resistance level. Once you become good at analyzing the critical trading levels, you should be able to make a regular profit from this market. Today, we will teach you the proper way to trade the important support and resistance level.

Finding the support and resistance

To find the support and resistance level, you should be looking at the higher time frame. If you evaluate the data in the lower time frame, you are never going to succeed in the retail trading industry. Most importantly, you will mess things up and blow up the trading account within a short time. But if you evaluate the market data in a higher time frame, you will get to know about the major support and resistance. Use the key swings in the market to find the important support and resistance level as it will give you a better picture of this market.

Avoid trading the news

The novice traders often try to take their trades during the high-impact news. But the support and resistance levels are often broken right after the major news release. So, if you think that by trading the high-impact news you can make a big profit, you are absolutely wrong. You need to know when to trade forex or else get yourself prepared to lose most of the trades. Things might sound very challenging at the initial stage but once you become good at analyzing the major news, you won’t have to worry about critical news events.

Trade with the trend

You must learn to take the trades with the major trend. If you fail to take the trades with the key trend, you will be losing money most of the time. The novice traders often take the trades against the major trend and lose a big portion of their capital. So, try to learn about the different phases of the market trend so that you can make wise decisions without having any much trouble. While analyzing the major trend in the market, focus on the daily chart. The daily chart will give you much more accurate data and let you trade this market with strong confidence.

Study the candlestick pattern

Candlestick pattern trading strategy is often known as the price action trading method. If you want to survive in the Forex market, we strongly recommend that you learn to deal with the price action trading strategy from the start. Once you become good at analyzing the candlestick pattern, you should be able to make wise decisions, and thus making a consistent profit will become much easier. But do not make the trading process complex by using candlestick, indicators, and other variables. Keep things simple so that you can make wise decisions even in the most complex state of the market.

Lower down the risk

You should not trade this market with high risk. Many traders execute the trades with high risk and they expect that they can earn a big amount of money within a short time. But this is not how the trading industry works. In order to survive in the retail trading industry, a trader needs to focus on long-term goals and take their trades with an extreme level of precision. Once they start to deal with the complex nature of the market, they will realize the importance of risk management policy.