Three effective tips to save your trades from being stopped out

Setting the stop loss price at the perfect level is very hard especially if you are new to this industry. Even the most experienced professional in the online trading world have tough times with this. But over the period of time, the expert traders have developed unique sets of skills to deal with this problem. But being new to this market you can’t really avoid the losing trades due to false spike. Most of the time the premature stopped out occurs during the highly volatile market. But the highly volatile period is the perfect time to make money. So if you stay in the sideline with the fear of getting stopped out then nothing will improve. We will now discuss three effective tips to save your running trade from being stopped out.

Use chart pattern instead of indicators

The recent advancement in technology is the root cause of using EAs and bots. The marketing masters are promoting this automatized trading system and indicators with a great effort. They even assure you that you will defiantly make money in this unpredictable market. If it was true then why they are not making millions of dollars in every month. The full time professional never trade the market based on indicators reading. These are just helping tools for the traders developed by smart coders. Instead of depending on this the professional Forex traders use the reliable chart pattern to execute their trade. Chart pattern trading is often considered to be the most effective way to catch the large movements of the market. But in order to trade the reliable chart pattern, you need to do your technical analysis in the higher timeframe. If you simply use the lower time frame then no can save your trade from being stopped out. So focus on the higher timeframe data and trade the reliable chart pattern.

Assess your trading knowledge

Sometimes trades are being stopped out due to the lack of trader’s knowledge. You might think that you are doing the perfect technical analysis in your online trading platform but still, there might remain some huge mistake. If you are facing frequent losing trades then it’s better for you to take a break and reassess your trading system. Switch back to your demo account and see what’s wrong with your system. Always remember that if you fail to make money in demo trading then you will blow your entire trading deposit in real life trading. But if you make consistent profit in demo trading then can expect to remain at break-even position during the first one year. You should educate yourself with the proper knowledge of fundamental analysis or else it will be hard for you to assess the strength of the market trend. At times you might think that trading is not for you but this type of thinking will put an end to your trading career. You must believe in yourself that you can become a successful trader.

Simple trading chart

Some traders often mess up their trading chart with tons of things. But if you ever get any chance to see the professional traders chart then you will be surprised to see a clear chart. You need to keep your trading chart really very clean so that you can truly see the actual price movement. Instead of using the indicators use the trend line or support and resistance level to place your trade. Learn the different forms of the Japanese candlestick pattern so that you can know whether the buyer or sellers are in control of the market. This type of candlestick pattern trading is known as price action trading. And being a price action trader you can easily set logical stops to your trade.

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