Trading has always been a challenging profession in today’s world. Thousands of investors are trying to learn the art of trading but most of them are failing since they don’t have any major skills. Most people fail due to a lack of knowledge and discipline. If you want to change your life, you must learn the basics of this market. As the price of cryptocurrency is extremely volatile compared to other digital assets, we should be extremely cautious about our actions. We have to use different techniques to protect our trading capital.
This article is not going to be your regular readers. We are going to emphasize the key topics by which we can find the best potential trade setups in the market even in the most volatile state of the market. Let’s dive into the details.
Analyze the higher time frame
You should never trade the cryptocurrency in the hourly time frame. To protect the capital, it is better to look for the trade signals in the daily time frame. By selecting the daily time frame, we will get the unique opportunity to deal with the critical dynamics of the market more inherently. Moreover, the false spikes and sudden movement of the price won’t have much impact on our trades.
Sadly, the rookies always trade the lower time frame and lose a big portion of the capital. They think lower time frame trading is the only way by which they can earn millions of dollars profit in this industry.
Trade with the trend
To deal with market volatility, you should always deal with the existing trend. The novice traders often think that taking the trades with the key trend is waste of time. They try to trade the major reversal and make a big profit. If you are doing so, read more about trend trading strategy at Saxo. Once you go through the professional articles, you should be able to deal with the key trends in a very strategic way.
Try to evaluate the market data by using the key support and resistance level. Use the news data to analyze the core direction of the market. Once you become good at analyzing the core dynamics of the market, you should be able to make a big profit without having much trouble.
Learn about the price action strategy
Dealing with the volatile state of the market is one of the most difficult tasks in the world. If you have a look at the professional trader, you should notice that they are using the price action trading strategy. By analyzing the different formations of the Japanese candlestick patterns and evaluating the news data, you should be able to analyze the direction of the trend. The novice traders might say that evaluating the price action confirmation signal is a very tough task.
Though it’s true, you can learn things by using the demo account. Once you become at analyzing the price action confirmation signals, you should be able to execute high-quality trades with a great level of precision.
Trade with the best broker
You should always trade cryptocurrency with the top brokers like Saxo. If you chose to trade with low-end brokers, you will never be able to do perfect market analysis. You will be losing money most of the time and this will make the overall process of trading much more difficult. Some of you might think the high-end brokers charge heavy fees. But if you do the proper research, you will be surprised to know that the fees stated by the high-end brokers are much lower.
So, take your time and learn to find the best broker. Use their robust tool as it will allow you to analyze the market data in the most volatile state. And never lose hope if you lose a few trades in a row. Considers it as your trading cost.