Technical Analysis looks closely at an asset’s chart using tools like indicators and oscillators to understand the current trend and where it could go next. This style of analysis focuses on the price action of an asset, not its actual value.
Fundamental analysis brings together all of the other information about a company to determine its worth, potential movements, and reactions to national or international news. By taking so many factors into account this type of analysis helps traders stay ahead of larger market trends Technical Analysis may miss.
Take time to practice using both types of analysis and learn to use the tools, such as indicators and oscillators, available on Olymp Trade platform.
2. Check The Economic Calendar
Newer traders often overlook the economic calendar. It is an unrivaled tool to stay up-to-date with economic events that will affect stock markets and currencies. With every economic event laid out in one place, it is easier for investors to know what will affect the markets they trade within.
These events vary, from speeches by central bank officials, reports of employment, a country’s GDP, and elections. Olymp Trade’s calendar helps explain in simple language impact the outcome of the event or report may have. Awareness of what will affect markets locally and globally, allows traders to trade from a better-informed position. Rather than only following what the market and charts are showing, the calendar can help make predicting movements of financial assets easier.
3. Use A Trading Strategy
Take the mystery out of making trades by using a trading plan designed for long term success. These predesigned methods of investing help guide traders through a trading session indicating when to buy and sell or to short or take a long position. Each style uses its own indicators, patterns, or oscillators to determine when to trade financial instruments.
Olymp Trade’s educational suite has an ever-growing number of different strategies to choose from. Depending on the method of investing and goals there are different styles traders may be more attracted to. The site’s built-in assistant helps explain how to execute the strategies simply.
4. Trade What You Know
The number of tradable assets continues to grow every year, which is beneficial for the financial sector as a whole. However, for some traders, the volume of assets can be daunting. No one trades everything, even Warren Buffet knows to stay away from assets he does not understand.
Diversification is great as long as the assets are both understandable and monitorable. It is better to trade a few assets profitably than many and barely break even. Splitting focus across too many things encourages mistakes. The most profitable traders are also some of the most cautious and look to minimize their risk with fewer assets.
As simple as this concept is many traders do not follow this principle. When investing in stocks and commodities of interest it is easier to continue to stay up to date with news that could impact the asset. Minimizing the number of assets traded allows for more focus on the few and potentially higher profits from them.
5.Utilize Money Management & Risk Management Strategies
Successful trading involves more than making the right investments at the right time. Money management (MM) is a set of rules for making decisions to increase trade efficiency. These rules help with planning and monitoring trades for either the long or short term.
Risk management (RM) helps protect traders’ original investments even in the event of bad predictions. Unsuccessful trades happen, and the goal is to stop losses from depleting your account balance. They are created to keep the number of losses lower than the number of successful trades.
RM reduces losses and increases total revenue and with an MM system in place, trades are made in accordance with a strategy instead of spontaneously. These systems essentially remove a portion of human error from trading. Following these plans will reduce the chances of losing money. These free webinars explain the finer points of both types of management.
You can change your life for the better, by mastering a new skill. The Olymp Trade Platform places everything you need to become the successful trader you have dreamed of being at your fingertips. With the platform's intuitive interface and continuously updating education libraries, you have access to the answer to any question. Do not dismiss this opportunity to create a better life for you and your family with one of the best forex brokers.
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