Trading is one of the most sophisticated business in the world. But mastering the art of trading is not all easy. Every day the number of retail traders in the online trading industry is increasing at an exponential rate but if you look at the success rate in the forex market, you will be completely stunned. Only 5-10% of the traders are able to make a profit from this market. Most of the new traders work hard to find the exact entry point for their trade. They forget about the about the exit their exit strategy. If you fail to close your trade at the right time it will be very hard for you to make a profit in the long run. Today we will give you some amazing tips which will help you to close your profitable trades at the perfect time.
High impact news
During the high impact news, the market becomes extremely volatile and it becomes really hard for the retail traders to execute orders. However, those who have profitable trades running can use the trailing features to maximize their profit. But trading features are only for the experienced professions. At times, your trades will be stopped out very early. So how do book your profit in such condition? The answer is really simple. You need to close your profitable trades regardless of the outcome of the news. For instance, you should never keep any open trades during the FOMC meeting minute since the market becomes extremely wild. Avoid trading the news and you will see a dramatic improvement in your profit factors.
Use the price action signal
Price action trading is the best way to trade the market. Many professional traders often ignore indicators based trading system since they consider it as a waste of time. The price action trading system is based on the different formations of the Japanese candlestick patterns. The novice traders might think this system will only allow them to execute profitable trades in the market but in reality, you can also use this method to find the exit point. Wait for the reversal candlestick pattern to close any running trade. But as a price action trader, you should always trade the market in the higher time frame since it will save yourself from the false spike.
Use support and resistance level
Support and resistance level trading is the best way to secure your profit in Forex market. Being a new trader you might use the pending orders at the key support and resistance level but this is a little bit risky. Try to use the price action confirmation signal to execute your orders along with the market trend. So how do you use the support and resistance level to find the exit point? The idea is very simple. If you execute long orders and the market breach a critical support level, you need to close the long trade with a loss.
Know your trading hours
You need to know your trading hours or else it will be really hard for you to make profit consistently. For instance, if you execute a trade in the AUDUSD pair during the London trading session, it’s very normal you will experience a low level of market volatility. So it’s better for you to close any open trade in such pairs. Similarly during the New York trading session you need should look for active currency pairs to trade the market.
Use the market sentiment
Sentiment analysis is one of the best ways to find the profitable trades in the market. The expert traders use the market sentiment to close profitable trades at the perfect time. But understanding the market sentiment is not that easy. You have to work really hard and trade this market with discipline. Over the period of time, you will know how to use them market sentiment to close the trade at the perfect time.