People are getting biased in favor of precious metal trading. Many pro-UK traders are taking trades in the precious metals alone and earning millions. So, is it more profitable to trade precious metals than currencies? Well, there are some pros and cons but the elite traders love it due to the trending nature. If you carefully analyze the precious metal, you will realize they are very trending in nature.
A few traders love the concept of trend trading system. But the majority of traders loves to trade the top and bottoms. Taking trades at the tops and bottoms always results in big losses. You won’t be able to execute any trades when you use this method. You must realize the importance of the trend. Only then will you be able to make a change in your life.
This article is not going to be your traditional read. You will spend the next three minutes learning 4 amazing tricks to trade silver like a pro.
Find the trend
You should have the ability to find the trend. For that you should analyze the daily chart only. Some people trade silver against the trend. But trying to take trades against the major trend is the key reason why people lose money in trading. You have to be very careful about the market analysis. You can use a simple 100 day SMA to find the trend. When the price is trading below the 100 days SMA, the trend is down. In a downtrend, you should only be looking to sell the asset. On the other hand, when the price trading above the 100 days SMA, you should be buying the asset as the trend is up. In case the trend is not clear in the daily chart, use the 100 period SMA in the weekly chart. This should give you a clear direction of the major trend.
Find the chart pattern
Those who are CFD trading with Saxo always try to use the premium platform to find the major chart pattern. Instead of looking for the reversal chart pattern, try to find the continuation pattern. By finding the continuation pattern, you will be able to take high-quality trades without having any trouble. Rookies often find it hard to focus on the major chart. To solve this problem, analyze the higher time frame only. By analyzing the higher time frame variable, you can take trades with discipline. In fact, you can trade the key reversal with confidence.
Learn about price action signals
Learning to trade with price action signals is an excellent way to make money. When you analyze the silver market, you should be cautious about the trading model. Forget about complicated price dynamics and try to come up with the logical approach at trading. Instead of memorizing the candlestick pattern, learn to deal with the market dynamics in a very efficient way. Focus on the core concept of trading and try to take the trades with low risk. Stop thinking that you know everything about this market. Once you become good at analyzing price action patterns, you can boost up the profit potentials.
Manage your greed
Managing your greed is very tough. New traders often consider it hard to manage the green and they break all the basic rules. They start placing trades with greed and try to earn millions of dollars of profit. But such an approach is never going to work unless you can take trades with managed risk. Think about the conservative trading approach. Focus on the core concept of trading and you will slowly learn that greed is a very dangerous thing. Create a logical approach so that you don’t make things anything personally. Trading should be pure math and the result should not make you frustrated. Be prepared to deal with any sort of outcome as this can help to boost your profit.