How to Find the Perfect Trade Setup in Forex Market

Finding the perfect trade in the Forex market is a very challenging task. New traders often become frustrated and quit their trading profession. In reality, trading is not all hard provided that you know the details of the Forex market. Learn to trade the market in the demo accounts so that you don’t have to risk any real money. Some retail traders in Hong Kong say demo trading is extremely boring but if you fail to control your patience level trading is not the perfect industry for you to make money. You have to wait in the sideline even for weeks only to find the best trade setups in favor of the market trend. In today’s article, we will give you some clear guideline which will help you to find the very best trade setups in the Forex market.

Learn the three major form of market analysis

The majority of the traders are concerned about technical analysis. They always try to trade the market using indicators and other technical parameters. Without understanding the concept of fundamental analysis you will never be able to ride the long term market trend. Learning the fundamental analysis at the initial stage might seem a little challenging but once you start to understand the high impact news, things will become easy. Once you have mastered this form of market analysis, it’s time to focus on the sentiment analysis. This is something which you can never learn by reading books and article. Over the period of time, you develop the perfect skill to analyze the market sentiment with an extreme level of precision.

Start using price action confirmation signal

Price action trading is often referred to as the best trading system in the world. The system is based on the different formations of the Japanese candlestick pattern. Being a price action trader you must have access to the Saxo Forex trading account since they offer SaxoTraderPro platform. Without having a precise price feed, you will not be able to do the perfect market analysis based on the Japanese candlestick pattern. Being a price action trader, always try to analyze the data in the higher time frame as it will significantly boost your confidence level. At times you might have quality trades in lower timeframe, but it’s better to avoid those signals unless you have extensive demo trading experience.

Avoid trading the high impact news

Do you really want to execute quality trades and reduces your losing edge? If so, stop trading the high impact news. It’s true you can make a huge amount of money just by placing trading during the major news release but it might cost you a huge amount of money. News trading is only for the experienced professionals and being a new trader, it’s not a great idea to trade the volatile market. Wait on the sidelines until the dust settles down in the market after the high impact news release and place the trade with proper risk factors.

The professional traders are always one step ahead when it comes to risk management factors. They never take any unnecessary risk even though they have a huge amount of money. Learning the art of trade management is very crucial for your trading success. Try to read new books and articles on a regular basis so that you know more about this market. Always remember, information is power when it comes to the investment business. At the initial stage never consider trading as your full-time profession since you might lose a significant portion of your investment and make things worse. Unless you can make a consistent profit for three consecutive years, consider the trading profession as your alternative source of income. Make sure you learn the conservative trading technique as it will save your investment in the long run.