Silver is a very popular trading instrument. Due to the trending nature of the silver, the Singaporean traders love to trade this asset. Though this trending instrument is very easy to trade but making some common mistakes can result in heavy loss. If you ask the professional precious metal traders about the market structure, they will always tell you to trade with the trend. Taking the trades along with the major trend is very tough. You have to focus on the stages of the market trend and avoid the common mistakes at any cost. Today we will highlight the most common mistakes associated with a silver trading strategy. If you can avoid these mistakes, you can expect to make a big profit without any trouble.
Identifying the trend lower time frame
You can’t see the full picture of the market in the lower time frame. To become a good trader, you have to focus on the higher time frame. A higher time frame trading method is like taking the trades in the safest possible way. Draw the trend line using the daily or weekly time frame. Though many traders prefer to draw the trend line in the 4-hour chart, the price of silver often goes for a deeper correction. So, you will find a frequent break at the 4-hour trend line. But if you analyze the trend line in the daily chart, you won’t have to deal with these issues.
While drawing the trend line, make sure you are connecting a minimum of three points. Taking the trades on the trend line drawn from two connecting points always result in bigger losses. Things might seem very difficult but if you focus on the long term goals, you will learn to take trades with discipline.
Identifying the price action signal
You must learn to identify the price action signal with precision. For that, you need access to a good trading platform. Explore the feature of Saxo if you are searching for a premium broker. With the help of the robust trading platform, you will be able to execute high-quality trades with an extreme level of precision. You don’t have to use the wide stop loss since all the trades will be taken with the help of the price action confirmation signals. Things become very challenging when people start taking trades using indicators.
Indicators should be considered as your helping tools. If you consider the indicator as to the prime tool, you won’t be able to trade with precision. Most of the time, you will lose trades and blame the market. But if you take a look at the top traders in the world, you will realize, they are using indicators as helping tools. So, never be dependent on the indicators when trading silver.
Stay tuned with the news
Being a silver trader, it is very important to stay tuned with the major news. If you ignore the major news, you can’t make money in the trading business. The top traders of the Forex market are always making mistakes because they don’t know how to manage the risk by syncing the system with the news. News analysis is not that difficult provided that you know the core factors of the market in order to take the trades. Focus on the market dynamics and take trades with discipline. Once you start blending the technical data with the news, you will feel confident in your silver trading method. Never expect to become a top silver trader within a few months. It takes time and practice.
News is the prime price driving ingredients. By ignoring the news factors in silver trading you are limiting the profit potential and increasing the risk. So, try to learn about the news trading method so that you can take the trades without having any issues. Be confident in your trading system so that you can change your life with ease.