Using the Fibonacci retracement tools like the elite traders
In the world of economic crisis, securing your financial freedom is not an easy task. You might have multiple revenue sources, still, you are going to have a tough time. So, is there any way to secure your life from such a crisis? Well, those who have managed to learn the art of trading is making a consistent profit without having any issues. You might be a new trader in Hong Kong but this doesn’t mean you have to lose most of the trades. If you can take some basic steps and trade the market with proper discipline, you can expect to make thousands of dollars at the end of the month.
To make a consistent profit, you must have a valid trading strategy. Instead of using a complex structure, it’s better to learn about the Fibonacci trading method. In this article, we will give you the perfect guideline to use the Fibonacci retracement tools.
Table of Contents
Start using the daily or 4-hour time frame
The first thing which you need to focus on is the selection of the time frame. If you try to make a profit by trading a lower period, you are not going to get the key retracement zone. The majority of the retail traders lose money since they trade 1 hour or lower time frame. Dealing with the lower time frame is more like gambling. You might find the retracement zone in the lower period but that will not be the exact trading zone. You will be trading the minor support and resistance level.
Focus on the candlestick pattern
To become a successful trader, you must learn to find a quality candlestick pattern. The pro traders in the Forex trading industry always trade the key retracement level with the help of price action signals. Once you start to trade the key retracement level with the help of candlesticks, you will get a better chance to make a profit. Developing your price action trading skills is not tough. Just open a demo account with Saxo and start trading the key support and resistance level with the help of the basic candlestick patterns. Once you feel comfortable with the price action signals, execute the orders to make some big profits.
Trade with low risk
You must learn to trade with low risk. Those who trade with high risk loses most of the trades. If you want to become a skilled trader, you must focus on the development of your risk management policy. Though the Fibonacci retracement trading strategy has a very high win rate, still you must limit the risk exposure in every possible way. Taking too much risk and trying to earn more money is more like gambling. Regardless of the quality of the trading signals, you should risk more than 2% of the account balance. If you can follow the conservative rules, you can expect to make a decent profit without blowing up the trading account.
Learn from the seniors
To master the art of Fibonacci trading strategy, you must learn from the experienced traders. The experienced traders can show you the perfect guideline to trade this market. Those who are new to the trading business often ignore the importance of proper education. They execute random trades with great hope to earn more money. The elite traders know the proper way to scale the trade. They never focus on random executions of the trade. If you seek help from the seniors, they will give you a decent guideline to trade the major retracement zones. Most importantly, you will get the knowledge of managing risk exposure efficiently. So, if you want to master the art of the Fibonacci trading strategy, it’s very crucial to seek help from the trained traders. If required, get yourself to the paid program so that you can ask questions to the elite traders. Focus on your skills and you will be able to use the Fibonacci retracement tools.