Australasian Association for Information, Communication Technology

Australasian Association for Information, Communication Technology

The best way to trade the key support and resistance level

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The best way to trade the key support and resistance level

Trading is considered to be the most elite business in the world. There are many traders in the financial market who wants to become a profitable trader but only a few can achieve this. If you look at the statistics then you will be surprised to see that out of every 100 traders' only 5 of them are making money in the online trading world. So who are these 5 percent people? The answer is simple. They are the smart traders who keep their trading strategy simple and trade with an extreme level of discipline. If you look at the Australian trading community then you will notice that most of the expert traders are trading with the reputed broker like Saxo and making a decent profit at the end of the month by executing high-quality trades in the market. So if you truly want to become a profitable trader then you need to follow the foot step of the successful trader. In this article, we will discuss how to nail the market while trading CFD.

Find the key support and resistance level
Most of the novice traders in the financial market don’t know how to draw the key support and resistance level properly. But if you draw the faulty support or resistance line then you are bound to lose money in the market. So when you draw the support or resistance line make sure that it have minimum two lows or highs connecting with the horizontal line. As a professional trader, you should never consider support or resistance as level rather consider it as a zone. When you start considering it as zone you will be starting to execute high-quality trades in the market with the great level of precision.

Use price action signal: Price action trading strategy is considered to be the most reliable trading strategy for trading CFD.So if you want to execute high-quality trades in the market then you need to look for reliable price action confirmation signal at the key support and resistance level in the market. It’s true that if you are relatively new in forex trading then it will be difficult for you to find the best trade setup using the price action signal. But once you master the basic of the price action trading strategy you will realize that this is one of the most reliable and possible trading systems in the world. Though they system is extremely reliable and profitable you should never trade the market by taking more then2 percent in your account capital. So always use proper risk management factors to save your trading capital

Do the news analysis: Most of the novice traders in the forex market start trading the key support and resistance level without doing eh news in the market. But in the eyes of trained professional, news are often considered to be most powerful price driving catalyst in the market. So if you ignore the fundamental factors in trading CFD then chances are very high that you will lose a huge amount of money in the financial sectors. So, make sure you do the fundamental analysis before you execute any trades in the market. As a professional trader, you should know that the long-term prevailing trend of certain assets often gets changed so if you don’t trade with fundamental analysis then chances are very high that you will wipe out the entire trading account in a short period of time.