Trading on Trends with Onlinemarketshare broker: what should you do to winDwain Ross 22 / June / 20 Visitors: 105
Where does the path of a new trader begin? It begins with the choice of a broker. Onlinemarketshare forex broker is one of the best options for a beginner.
There are several reasons why a novice trader should pay attention to the Onlinemarketshare broker.
First of all, the company allows beginners to hone their trading skills on the Demo account. This type of account is exactly like a real account, but the trader does not use personal money. Instead, he or she receives a certain amount of money in the virtual account. For new traders, this is a great way to get acquainted with the trading process. However, it is impossible to withdraw money from a Demo account.
A demo account is not a single unique option Onlinemarketshare forex broker offers to new traders. For those who are just starting to trade on a real account, the company provides a Risk-Free period. If the novice trader makes an unsuccessful deal and loses money, the company compensates for losses using an internal insurance fund. In this way, the company protects a new trader from immediate disappointment and financial loss.
Onlinemarketshare broker helps traders to increase their level of knowledge about forex continually. The corporate site has a special section - Education. Using the information from this section, it is easy to learn the basics of financial markets. However, theoretical knowledge is not enough, and now we will explain the reason.
Suppose a trader understands and remembers the terms “uptrend” and downtrend, the level of support and the level of resistance, and understands what volatility is. It is logical to assume that a trader will begin to create a trading strategy. Onlinemarketshare reviews recommend developing a strategy at the beginning of a trader’s career and then improving it based on lessons learned.
In the trading strategy, the trader determines the daily profit and loss limits, the number of open positions per day or per week, and sets financial goals, such as 10% of the profit per week. However, it is almost impossible to plan every entry into the market. Entering the market is the moment when a trader opens a position. Timelines of opening a position affects the profitability of the transaction, although this is not the only influential factor.
The exit point or position closing time is also essential. If you enter the market in a right way, you are more likely to close the position with a profit. According to Onlinemarketshare reviews, these rules are equally valid for currency pairs, and metals, stocks, and indices.
Enter the Market
How to determine the right time to enter the market, as well as the most profitable exit point? Think about the direction of trade. You can trade on the trend, against the trend, on a flat market, and trade on breakouts (candles). Each of these methods has advantages and disadvantages. The choice of trading method depends on the experience and temperament of the trader. If these factors are ignored, you can lose money, which will lead to the erroneous conclusion about a scam by the Onlinemarketshare broker.
Along with the Trend: Follow the Market
Trending is good in quiet periods. When no significant economic news is foreseen, the political situation is stable, and large players do not plan large-scale actions, stable trends are formed in the market. A steady trend is a rise or fall in the price of a selected asset over some time without significant jumps. Onlinemarketshare broker believes that for a beginner, positions along the trend are the best way to enter the market.
You can set the take-profit level on a firm trend, and when it is reached, fix a profit. If the trend remains stable, you can even open a new position if this corresponds to the trader’s financial plan.
The disadvantage of trend trading is that a new trader can rarely predict when a trend will reverse. Onlinemarketshare.com review writes about the problem that most traders face. This is a psychological barrier that prevents one from acting quickly. The trader has to decide: to enter or not to enter, to open positions or wait, and it takes too long.
A long thought leads to the fact that the trader opens positions close to the trend reversal, which is quite risky. If the trend has already approached the next level of support or resistance, the trader may not have enough time to close the position with a profit. In this case, he may accuse the broker company, for example, Onlinemarketshare. Therefore, at any entry into the market, it is recommended to set order limits that close the position when the price reaches a certain level.
How should a trader increase the chance of making a profit? First, wait for the right moment in the global market to enter. For example, the excellent moment to enter the market is a flat trend after a period of sharp volatility. It can happen after the publication of important economic indicators or the annual report of a large corporation. When the market reaction to this news feed ends, the price of assets is leveled, and for some time, it moves in one direction. However, there is a risk that the price movement will interrupt without becoming a trend. Onlinemarketshare may help to increase the chance to resonate with the market.
For online trading, a trader uses a trading terminal - special trading software. Onlinemarketshare forex broker offers mt4 terminal - a reliable and proven solution. In addition to reliability, traders appreciate MT4 for convenience as well. In particular, you can assemble charts with information and details on which market trends are visible. Depending on the type of chart, you can determine the support and resistance levels and use them as a starting point for opening a position. For more precise settings, you need to use the so-called touchpoints. In the trading terminal, it is easy to display the trendline on the chart and set the touchpoint, internal intermediate level of the trend.
When the pair’s price touches this line for the third time, this is one of the indicators for market enter, according to the Onlinemarketshare forex broker.
One of the risks that a trader can face is false breakouts, sudden price spikes that do not indicate a reversal. To avoid losing money, you need to determine stop-loss and take-profit levels in advance. According to Onlinemarketshare forex broker experts, it is best to wait for the completion of the candle. If this is a false breakdown, the course will quickly stabilize.
Against the Trend: a New Turn
Trading against the trend is more complicated, that’s clear from the numerous reports on onlinemarketshare.com. If the trader believes the trend will reverse soon, he or she opens a position against the current price movement. In practice, it looks like this: the price of the selected asset goes up, but suddenly turns around and moves down.
If there are no apparent reasons for such a reversal, the key level of support or resistance is not broken, new information lines have not appeared on the market, you can take a chance and open a position up. Most likely, after a period of fluctuations, the uptrend will recover, and the trader will be able to close the position with a profit. This kind of described situation can happen, for example, when the support level is close to the resistance level. So this can happen even in a calm market.
So-called flat market never lasts long. To determine the moment to enter, you can use the “triple touch” indicator, when the price three times approaches the level of support or resistance, without breaking it. But if you use this indicator, with the third touch, you need to act immediately. The trend can change very quickly, leading to the loss of money and the sad conclusion that Onlinemarketshare forex broker is a scam. Therefore, trading against the trend is not recommended for new traders.
A trend reversal can be predicted based on market signals or news. In the market reports, you can come across the following formulations: “the market froze waiting for the news.” Important economic news comes out on schedule. Experienced traders get ready for the report in advance, opening positions in the right direction. Let’s say the market is waiting for new data on unemployment in the United States. If the number of new applications is higher than expected, the US dollar moves down.
In anticipation of this movement, traders who trade along with a trend open positions down. But if the data matches the forecast or even goes down, the dollar moves up. Traders who trade against the trend direction open the corresponding positions. Onlinemarketshare broker analyzes the statistics, which shows that a minority of traders is trading against the trend; most of them already have experience in successful Forex trading.
Catch the Candle
A candle is a sharp jump in the price of an asset for some apparent reason. Candles can be unpredictable, especially for a short period. Trading on short candles is the riskiest, but the profit is the highest. To minimize risks when trading on candles, you need to set stop-loss and profit-taking levels. Reviews on onlinemarketshare.com say the best way to catch a candle is to open a trade when the trend enters the correction phase. At this point, sharp fluctuations in asset prices are possible.
Experienced candlestick traders use Fibonacci numbers to analyze. This is extremely useful when a trend movement takes a zigzag pattern. Fibonacci levels allow you to determine the depth of trend correction. You can learn more about Fibonacci levels on the Onlinemarketshare broker website in the Education section, or in other educational training materials on trading.
According to the Onlinemarketshare broker, it is best to enter the market when the correction is in the range of 23 to 38%. Obviously, calculating the correction percentage is too tricky for a beginner. Experienced traders should remember that this type of strategy is good for short and medium-term forex trading. In the long run, other types of trading would be more profitable.
For newcomers on the forex market, trading along a trend in a moderately active market is a best trading option. More experienced traders can open positions against the trend or try to catch a candle. Regardless of the chosen type of trading, it is always useful to set take-profit and stop-loss levels in the trading terminal in advance.
In any situation on the market, a trader must follow his trading plan and overall strategy. It is not recommended to exceed the limits set for the number and volume of transactions. Also, the Onlinemarketshare broker does not recommend opening a position for the entire amount of the deposit.
We remind you that for the successful work of a trader, cooperation with a reliable broker is necessary. Onlinemarketshare broker is suitable for experienced traders and beginners.
Flexible trading conditions and special conditions for new traders give the company’s customers an advantage and reliable protection. The company also does not charge any commissions or additional fees. The International Finance Committee regulates the Onlinemarketshare broker and is a guarantor of integrity and reliability.