Trading is about finding insights and strategy that aligns with your risk profile and follow it thoroughly in ups and downs. You can make gainful trading strategies using easy moving standard combinations for instance. Picking up just two or three of your favourite pointers and getting to know them inside out can do wonders. Start building up your trading strategy from there. One of the effective platforms for traders is spread betting and company like ETX Capital offers a good opportunity for traders to bet on. Below are 4 steps which will allow you to keep it simple yet successful:
- Keep your trading market limited
Choose couple of areas you want to start of like as Forex or equities, or just one, and trade only that after a good study and research. Learn how these markets work and get a feel for how prices move. Develop a relationship and create a network with the markets you choose to help you be on top of everything.
- Plan your entry and exit
If you have a potential spread bet from your trade. Now you need to decide when to enter the trade setup. A simple entry could be when it bypasses the high or low of the last number of bars or when the price crosses a moving average. Many inexperienced traders focus far too much on trade entries. Jumping into a trade is simple and also It is profitable exit part is difficult.
- Always use a stop-loss
You should use a stop-loss every time you make a financial spread bet. In addition some of the spread betting corporation these days insist that you have a stop loss on each trade that you make. I think this is good practice. The stop loss is dependent on how volatile the market is and how much you are willing to lose. You might set your stop 15 or 20 per cent from your entry point, or maybe set the stop at the latest hold up or confrontation level.
- How to decide when to exit
Traders always need to found before they make a spread bet how and when they should exit the trade. It could be an individual use to reduce risk or locking in returns by selling a portion when the trade moves in your favour. Instead you might wish to exit using a limit order and use 3:1 or higher reward and risk ratio. If the reason for the best goes away you ask yourself what to be done next.
Having a spread-betting strategy using the above strategies will help you in getting rid of emotion from your trades. However, you need to stick to your strategy and not get deviated from your strategy will surely lead you with a return. Given enough time, your strategy should give you a positive outcome.