CFD trading has changed the face of the investment business. With the help of modern technology, you can now trade any asset with an online trading platform. Many retail traders in Singapore are using the digitalized platform and securing financial freedom. But you do you know a major portion of the investors is losing money? To be exact, more than 95% of investors are losers. So, who are the 5% of people? They are known as a smart investor and they know how to deal with the trades.
People ignore the news factors while taking trades in the financial market. Ignoring the news factor and trying to earn big is not the action of a professional person. You have to know the high impact news as the drives the price in the market. Let’s learn some smart techniques that will allow us to deal with the major news.
Stay away from the news
The new investors should always stay away from the major news. They don’t have any idea about the different types of news. In fact, to get the basic idea, you have to spend the first few months knowing the price movement in different types of news. The news can be divided into three major groups. For instance, you can the high impact news are the ones like GDP, interest rate change, press conference, etc. On the other hand, the medium impact is news like housing data, CPI index, etc. So, know how this impacts the CFD market and gradually learn to take the trades.
Analyze the price dynamics
You must analyze the price dynamics from scratch. If you focus on the complicated price dynamics, it will be hard to make a consistent profit. Try to study the price action pattern in different news. For that, you have to learn about the price action trading method. After you become good at analyzing the price action trading signal, you will require to use a good broker. Read more about the top broker like Saxo and open the trading account so that you can use their advanced trading platform. By using the advanced trading platform, you can take high-quality trades with more precision. Most importantly, you will feel comfortable with the price feed and this will improve your technical skills in the long run.
Learn to lower the risk
In order to protect your trading capital during news trading, you should learn to trade with low risk. Taking the high risk and trying to earn a huge amount of money is not going to work. The majority of the retail traders think they have learned everything about this market. But there is a lot to learn and still, you will lose money. Always expect to have some losing trades as it will keep the greed away. Becoming emotional and trying to earn a huge amount of money is not going to work. To ensure the safety of your trading capital, you must learn to analyze the key metrics and this will allow you to change things.
Trade the daily chart
Those who want to trade the major news should trade the daily chart. Taking the trades in the daily chart has a huge advantage. You can learn more about the technical difficulties and it will allow you to change things in a dramatic way. It might sound hard as you have to wait for the good setup but it is better to wait rather than losing money on low-quality trades. Try to improve your trading skills by learning more about the market. After you become skilled at analyzing the key dynamics, you will slowly learn to trade like a pro. But never try to beat the market or the news. Stay up-to-date with the news data so that you can ride the trend without exposing yourself to a high-risk environment.