Commodity trading is one of the most difficult tasks in the financial world. You might have the extensive trading experience yet you can’t afford to take a huge risk in the commodity market. This market is very sensitive to economic news. For instance, the price of oil dropped significantly back in 2015 due to massive production. But after OPEC put a cap on the production line the price surged higher recovering its loss within a few weeks. It’s very oboist that the long-term prevailing trend of the commodity market can easily get changed due to high impact news or political speech. Though this market is extremely volatile in nature, the professional traders at Saxo are making tons of money. The follow some simple rules to make a profit in the volatile market. Today we will give you top three amazing tips which will boost your profit factors in the retail trading industry.
Stop trading with the herd
The novice traders are always trying to trade the market based on other people opinion. But this is not the professional way of dealing the market. You have to stop listening to other people trade signals. No one in this world can give you perfect signal to trade this market. You will always have to lose trades even after following precise guideline’s it’s better to lose money based on your trading decision since you will learn something new from your mistake. But we are not saying that you will not follow the advice of the successful trader. The successful trader will always give you premium advice which you can use to make your life better. But you need to ensure that you have validated a reason to believe the successful traders. Never let your emotions to take control your trading system. You are the one who needs to trade this market based on rational logic.
Practice a lot
Majority of the retail traders are losing money due to lack of their knowledge. They don’t know how this market works. So it’s highly imperative that you use demo trading account to learn the basics of this market. Some of you might say that demo trading will not help you. But have you ever heard that a person is successful without practicing hard? The simple answer is NO. Demo trading environment will give you the perfect platform to learn commodity trading without losing any real money. Forex market is dynamic in nature and you have to keep pace with the changes in the market. If you don’t synchronize yourself with the market dynamics it won’t take much time to lose money in the retail trading industry. You need to remember the proverb, “Practice makes a man perfect”. Try to develop a unique but simple system to trade this market.
Stop trading the lower time frame
Higher time frame trading is one of the key ingredients to becoming a successful trader in the retail trading community. In lower time frame trading you will have to deal with lots of false trading signals. Even if you learn price action trading lower time frame trading will be very hard for you. Those who have years of trading experience should trade the lower time frame data. However, in order to trade lower time frame, you have to study different time frame to avoid false trade setups. In higher time frame trading, you need to use the Japanese candlestick pattern to find the most profitable trade setups. It’s true that this is one of the easiest ways to make money but this doesn’t mean you have a bulletproof trading system. Every trader has to face losing trades. You have to limit your risk exposure so that you can easily deal with your losing trades. Stop setting unrealistic goals in this market as it will ruin your trading career. Trade the market with simple strategy and consider this profession as your business.