Trading secrets

New traders enter the market as they strive to generate better financial results. However, not all can boast about significant, but more importantly, stable profits. This is completely understandable as the thought crosses every new trader’s mind at some point that there might be trading secrets that, hypothetically, the most successful traders know. Of course, it is difficult for your average person to grasp the complexities of trading. They naturally assume that highly-successful analysts adopt certain analytical systems and approaches for evaluating market movement that enable them to generate significant profit. Today, we will examine if these secrets really exist and what they may entail. This will be useful for any potentially successful traders who take trading on the market seriously.

So, it is important to mention that, when analyzing the market and the related activity on the part of participating parties, there are certain trading secrets that definitely exist. It is worth pointing out off the bat that they shouldn’t be overemphasized, as there is no Holy Grail or any kind of top-secret trading approaches. It all lies in a logical and fully-explained dimension. Moreover, it is both easy and achievable for anyone to wrap their mind around these secrets, so long as they view trading as their profession. The following is a breakdown of the primary professional secrets for trading on the financial market that enable them to produce the best trading results possible.

 

trading secrets

 

Safeguarding your capital

Professional traders take safeguarding their investments seriously! Considering this in the context of trading over-the-counter short-term contracts online or working on Forex with currency pairs, it is worth mentioning that these days investors struggle to safeguard their capital. The reason for this is extremely simple, as the popularity of online trading has risen, the opportunity for significant financial gains has attracted many conmen to the field. To avoid this you need to be very careful and particular when you chose your partner for trading! Famous traders often have their own personal brokerage licenses and take personal responsibility for safeguarding their capital. We, however, much like private online investors, have to trust a company that provides these services for us. This is why it is recommended that you choose a trading platform licensed by an international or national regulatory body with a good reputation. So you protect yourself and your money from fraud! Other than that, when you partner with professional companies you gain access to better quality technical services for working on the market, as well as the ideal financial conditions for trading. In particular, it not only gives you a better user experience for conducting trading operations, but it also enables you to generate more indicators.

How do you earn a lot?

The vast majority of online traders think that minimal capital is enough to work with on the market. Of course, you can trade with $10-$100 dollars in your account, but it is not a big enough investment to generate a significant profit. If the average indicator for the capital growth of any trader is statistically analyzed, it is clear that within the period of a year no more than 15-20% profit is generated. Meaning that is you want to generate a serious profit, you need to put in a good investment. Don’t get it into your head that you can quickly spread your deposit producing millions of results. There are many risk factors and technological difficulties in forecasting market movement that aren’t apparent to online traders without professional knowledge and experience. This prevents new traders from achieving accurate signals. The trade secret for this is a simple one, they operate accounts with significant capital and produce highly-accurate financial trading signals. Private investors need to keep in mind the simple truth that the more capital you invest, the higher your profits will be!

Trading strategies

Arguably, professionals’ trading systems are of particular interest to private investors. Of course, it is very interesting to try out technical analysis approaches that have already been shown to produce results on the financial market. New traders get the idea that they can get accurate signals just by copying successful traders. Without a doubt, by doing this your capital will grow to a certain extent, however, it isn’t that simple or everyone would have already become a trading “guru” and earned large amounts of money. The issue is not just the technical strategy, there are various negative factors that are difficult to see at first glance. The vast majority of professional use a strategy that they themselves have designed, factoring in a number of indicators: the trader’s personal preference in terms of financial trading tools, their experience, psychology and even their natural intuition. To put it simply, traders who use their own systems subconsciously evaluate how effective it is in specific situations, meaning that simply copying the strategy doesn’t always lead to the same results.

You could say that every new trader should aim to develop their own approach to forecasting the market. For that, first and foremost, it is necessary to have a good understanding of the primary systems of analysis and the technical tools for forecasting the market. When you devote time to expanding your understanding, you not only gain experience but open up the opportunity for future professional growth. As a result, your system will become as efficient and effective as possible. Until your knowledge of trading reaches a sufficient level that you can develop such an approach to market analysis, you can use these simple forecasting approaches! Let’s break down which strategies are the most effective for new traders together.

We recommend that you put together a collection of trading strategies, making it possible to get trading signals for forming positions anytime the market is open, increasing the likelihood of effective trading.

Classical trading systems can be divided into these types of strategies:

● Approaches to analysis based on the cyclical nature of rates, known as Price Action in professional spheres. This type of strategy is built through various chart, wave, and candle patterns that often occur on liquidity charts. In this case, strategies based on trend level, geometric patterns such as “Flag”, “Pennant”, “Triangle” or “Consolidation Zones” are recommended. Highly-effective candle patterns include “Pin Bar”, “Engulfing”, “Dodge” and “Shooting Star”. Other than that, you need to study market wave patterns. They are an irreplaceable analytical approach for forecasting medium-term market trends. Price Action systems alone enable you to build up a basic arsenal of trading strategies for successfully working on the market.

Indicator strategies. We live in a century of computers and automated systems. The financial market can’t ignore the opportunity that this presents! As soon as technology made it possible to automatize certain trading processes, various algorithms aimed at evaluating the market, as well as basic asset rate charts, began to appear. Today, the selection of indicators includes hundreds of well-known ones. This opens up the opportunity to create a strategy that meets your needs in regards to complexity, and specific trading conditions. In order for you to accurately analyze the market, we recommend that you use the following classic indicators: oscillators – these tools accurately signal rate reversals and are very effective for day trading, trend indicators – this type of tool enables you to identify general market trends of asset price movement, range services – these indicators can help you to identify investors’ preferences and the level of market volatility. In general, today indicators are considered the simplest and most effective resource for constructing trading systems.

● Systems based on fundamental analysis. In this case, the approaches adopted for market forecasting involve evaluating large amounts of statistical data, news and press releases related to the operation of the international financial system. The classic fundamental analysis strategy is trading the news. It is simple in principle, good news signals the market is going up, and bad signals down, creating the opportunity for generating not too bad results. Other than that, fundamental data is vital for assessing any possible corrections necessary in any trading system. You can only adjust any trading system effectively by taking into account outside factors that could have an influence on the market and financial system data

As you can see, even classic trading strategies enable you to feel confident in yourself on the market, even without adopting professional traders’ secret approaches.

Risk assessment

Professional traders always assess the financial risks of every market position in detail. Even if probability the contract is profitable is 100%, a successful trader will not break their rules! Risk is one of the strongest factors that leads to significant losses in capital. This is why new traders should clearly outline the safest trading regime for their circumstances, so they can achieve a stable growth in capital and create conditions to trade safely. Successful traders, of course, have their own secrets in this sense. For example, adopting sophisticated algorithms for evaluating risk that encompasses both technical and fundamental data in a long-term perspective. Private investors should set reasonable limits on the cost of contracts in relation to the total amount of capital at their disposal. Typical guidelines for money management on the financial market advise using no more than 5% of your total funds on any one position. In such a regime, you can cope with nearly any loss and generate profit even with a potential losing contract

Psychology

Trading is a relatively stressful process, hence one of the secrets to success on the financial market is psychology. Professionals pay a lot of attention to this aspect of trading. Firstly, every potential investor must come to grips with the fear of losing capital. Secondly, traders occasionally encounter situations where they are tempted to break the rule of their own trading strategy. Thirdly, successes as well as failures, on the financial market can be psychologically dangerous to your overall wellbeing. In this context, successful investors advise adhering to the following simple rules:

● Outline a clear trading plan on the market and strictly follow it

● Keep a trading journal so you can analyze your mistakes and improve your trading

● Be psychologically prepared for losses and well as profit. Your successes should serve as motivation and your failures as only small setbacks along the way. On that note, there is the psychological concept of phrase training: “Losses are the price for experience and expertise!”

● Take more breaks from trading, set back from trading and get a change of scenery. This will give you time to come up with new ideas and approaches for trading more effectively

Don’t ignore your mental state when you are trading. This will only lead to losses when the real problem has to do with your health

Conclusions

When studying successful traders’ actions it is clear that there is nothing supernatural about it. It all consists of accurate calculations and discipline. These are professionals who have dedicated a great deal of time to evaluate their own mistakes, gaining practical experience and studying the market. Only a clear pattern of behavior and an individual ideology for working on the market will enable you to gradually achieve your goals. So, of course, there are secrets to trading, but they are out there for anyone motivated enough to look for them!

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Trading Secrets. Do They Really Exist?
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