Getting caught up in the glamorous side of trading is easy. The big wins, the impressive payouts, and the glory of getting it right when others didn’t. On paper, trading sounds like a dream job. You set your hours; you spend time with people who share your interests, and you are rewarded handsomely for your efforts.
Becoming a pro trader
There is more to becoming a pro-trader than just managing your losses; it requires drive, focus, discipline and sometimes even blood, sweat and tears (or lots of coffee).
Technical analysis is the most important thing you need to learn as a currency trader. Being a full-time trader, you should master the art of technical analysis to survive in the trading business.
Those who are making consistent profit know the ins and outs of technical analysis. So, what is technical analysis in the forex market? It’s nothing but using the advanced tools to find the potential trade setups in the higher time frame. If you learn to use this tool efficiently, you can easily make big profits from this market.
Professional traders use a wide range of tools available in the trading platform. Today, we are going to discuss the top four tools used in technical analysis by pro traders.
Trend line tools
The trend line tool is the most basic trading instrument that offers high market accuracy. Because traders rely on indicators to identify trends, most retail traders lose money. With the aid of the trend line tool, you can quickly find high-accuracy trade setups in the market.
Learn to utilize the trend line tool like Australia’s pro’s as a full-time trader. They employ it daily so that they don’t have to lose too much money with this tool.
Horizontal line tool
Traders utilize this to identify the horizontal support and resistance levels in a financial instrument. It isn’t easy to thrive in the ETF business unless you can discover the critical trading zone.
The tool is simple to use, but even novice traders make mistakes while drawing support and resistance levels. To find a viable support line, you must establish at least three connections. To discover a critical resistance line, you’ll need at least three connected points.
Once you’ve found the crucial support and resistance levels in a trading chart, you can execute the trade and earn a good profit without taking too much risk.
Fibonacci retracement tool
Professional trend traders primarily utilize the Fibonacci retracement tool provided by Rakuten. If you wish to trade the market following the main trend, you must first learn to use the Fibonacci retracing tool. You can look for high-quality trades in the market with the aid of the Fibonacci retracement tool. Instead of utilizing all of the retracements, you should be using the 38.2%, 50%, and 61.8% retracement levels. If the price breaks below the retracement level, it is an indication of a trend reversal.
Follow price action signals to trade retracement levels to make the most of your investment. It might appear to be an overwhelming challenge, but with the aid of fundamental tools, you can rapidly enhance your trading abilities and earn a respectable profit.
Copy-trading platforms such as eToro allow you to copy top-performing traders with little effort. Whether you’re a novice learning the basics or just don’t have time to monitor the markets, you can now benefit from the insights of other traders. With eToro’sCopyTrader, you may duplicate the trades of top traders in your own portfolio.
For those interested in enhancing their trading, eToro provides a wealth of additional features that go above and beyond simply providing a copy-trading platform. You join a major collaborative community of traders and investors, where you can connect, share, and learn.
We’ve gone through the four most essential trading tools that professional traders employ. If you want to ensure a consistent income from this market, try out the demo account first with this tool. Before utilizing them in the real market, understand their usage thoroughly.