Stock trading is a very popular business in today’s world. Millions of people are leading a life based on earnings from the stock trading business. But when you compare the success rates, you will be surprised to learn more than 90% of retail stock traders are losing money. The reason why we have such a low success rate is due to a lack of discipline. People consider stock trading as their career even though they have very little knowledge about this market. If you want to survive as a stock trader, you must improve your stock trading skills. Let’s read 4 proven ways we can improve our stock trading skills.
Trade in the higher time frame only
Rookies in Hong Kong trade in the lower time frame. To them, lower time frame trading is more profitable because they can take more trades. But if you closely analyze the price chart, you will notice that noise is very common in the lower time frame. It is very hard to predict the key trend. On the other hand, by switching to the daily or the weekly time frame, you will get a better picture of the stock market. This will allow you to take quick decisions which will help you to make more money. The daily time frame trading strategy might limit the number of trade execution but it can improve your accuracy to a great extent.
Using the candlestick pater
To buy stocks at the best price, you need to use the candlestick pattern. Candlestick pattern trading strategy is often known as price action trading. With the help of the price action trading method, you can take high-quality trade without having any issues. Most importantly, you will be able to execute quality trades. After you get the basics of the price action confirmation signal, you will be able to use a tight stop loss. The use of tight stop loss allows you to increase the lot size, thus the profit becomes higher. Risk exposure always stays low when you rely on the price action trading model.
Stop trying to memorize the candlestick pattern and try to learn how this pattern work. After you become skilled at analyzing the price action signal, you will slowly learn the proper way to improve your trading skill and this will make you a better trader.
Learn to analyze the major news
You must analyze the major news before you take any trade in major stock. Without analyzing the major news, you won’t be able to execute high-quality trades. People are losing money because they rely on technical data. But news factors are powerful price driving catalyst and it can change the trend. So, if you give priority to the high impact news, you will be able to scale the trade. Most importantly, it will allow you to trade with more confidence. Take your time and try to learn about the major news so that you don’t have to lose too much money.
Learn from your mistake
If you want to make money, you must learn from your mistakes. Learning from mistakes is the best way to improve your trading skills. At the initial stage, you can’t find the best price to buy stock. But if you follow the tips of this article, you will slowly learn to deal with the complicated nature of this market. There is no rush to recover the losses. Analyze the losing trades and find out the main reason why you have lost the money. After you do so, fix the problem. This should be an ongoing process. Only then can become a top stock trader. Make sure you face the challenges of the market with confidence.