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Four effective rules to improve your trade executions

Forex market may be the most profitable trading industry but very few traders manage to make a profit at the end of the day. Statistically speaking, only 2-3 percent of retail traders can change their life. If you intend to change your life without following the core concept of trading, you are going to have to tough. For instance, very few traders understand the importance of quality trade execution. They are busy placing random trades and losing money. You must work hard to improve your execution process or else you should not be a fulltime trader.

There are thousands of ways to improve your execution process. But today we are going to give you four simple rules that can help you to filter out the best signals.

Avoid the indicators

Using the indicators can is one of the most efficient ways to filter out the bad trades. But do you know the majority of the Aussie traders are having trouble to execute the trade at the perfect time? The indicators can’t generate the signals on a real-time basis. The retail traders are losing money since they get early or late signals from the indicator. 

Instead of relying on the indicators, use the simple concept of support and resistance level. But you should trade the support and resistance without having fair knowledge of the market trend. Let’s say, you are looking to trade the AUDUSD pair. Analyze the market trend and look for signals in favor of the trend. And to find the major support and resistance zone, you should rely on the higher time frame.

Learn to use the price action signals

The elite traders in the Forex trading industry can make a consistent profit since they use price action signals. The Japanese candlestick always gives real-time signals to the retail traders. So, using Japanese candlestick is one of the most effective ways to make a profit from this market. You might be a new trader but this doesn’t mean you will be placing trades without having any fair knowledge. Some of the intermediate traders often try to ignore the price action confirmation signal since they consider it as a complicated strategy. But if you demo trade for a few months, you will always use the price action confirmation signals. For instance, if you find a bullish morning start at the demand zone, you can place a tight stop by using the pattern. Most importantly the executions will be precise and this will help you to set high risk to reward ratio.

Avoid trading news

If you want to improve your trade execution, you must avoid trading the major news. Trading the major news is more like dealing with the fire. A small mistake can hurt you badly. Try to trade the market when the price movement is stable and there is no scope of the wild spike. For that, you have to focus on high impact news schedule. You don’t have to master fundamental analysis to improve your trade accuracy. Just stay in the sideline and avoid trading the major news.

Trade in the daily time frame

Trading the lower period or scalping is a very risky strategy. Most importantly, you can improve your accuracy. On the contrary, if you start focusing on the daily time frame, the execution process will be smooth and you won’t have to deal with tons of complexities.

 A higher time frame trading strategy is more profitable and it allows the retail traders to earn more money. You might have zero knowledge about the position trading method but learning the INS and OUT is easy. If required, find a professional mentor and become a position trader so that you don’t have to trade with poor quality signals. Always remember, quality trade execution should be your priority.
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