Precious metals have become very popular trading instruments. People are jumping into the precious metal trading industry because the volatility is decent. Just by having the ability to predict the direction of the price movement, you can secure your financial freedom. Thousands of traders in the United Kingdom are trading silver because the associated hassle is low compared to currency trading. As a currency trader, you have to monitor multiple assets. Moreover, the global economic news is always creating chaos for retail traders. You can avoid this problem just by learning to trade silver.
Trading silver might be easier than currency trading, but the profit factor is still in your hands. You can control the lot size and determine how much profit you will make as a currency trader. Let’s get into the details by which we can become a professional silver trader.
Learn about the cycle of a trend
There are different stages in the trend. If the market is moving against the long term establishment trend it is known as a retracement. The retracement is of two kinds. The bearish retracement takes place after an extended bullish rally and the bullish retracement takes place after an extended drop in price. This phenomenon is always prominent in trading instruments. The professional traders often call it the cycle of the trend. You need to decipher the mystery behind the cycle of the trend. It is nothing but gaining the ability to find the end phase of market retracement. Once you can take trades at the end of the retracement, the execution process will be much easier.
Due to the trending nature of the silver market, we must focus on the critical trading zone. The retracement tends to end on such levels. So having fair knowledge of the support and resistance level is enough to boost your profit potential in trading.
Start using the candlestick pattern
The price action traders love to trade silver because it offers them a decent profit-taking opportunity. However, being an active user of the candlestick pattern, you must use a robust platform. Those who are not sure about the features of the professional platform can check here. Once you get used to the concept of the candlestick pattern trading method, you will be able to execute high-quality trades without any trouble. This will help you to earn a huge amount of money with a tight stop.
The reason for which the candlestick pattern trading method has become so popular is the precision in the trade execution process. Indicators can help you to find the direction of the trend but the execution will not be precise. Thus, expecting a big return from an indicator based trading method is a very naive.
Stay tuned with the news
You need to know about the leading silver producers in the world. Once you have filtered out the names of the countries that produce silver in large quantities, you need to focus on the economic performance of such counties. By analyzing the economic performance of the country you will get a clear idea about the potential price movement of the silver. Though news trading is very tough for rookie traders it can be done easily. Instead of trying to analyze the economy of a certain country, start reading news articles on silver. Within a few months, you will notice that focusing on the news of silver is not all tough. It is much easier than dealing with currency trading news.
Never lose confidence
Being a silver trader, you should never lose confidence. You might have to lose a few trades in a row, but this is a part of the silver trading profession. Even the top silver trader lose money. Think about the elite class traders at Saxo. They never lose hope because they know they can recover the losses. Trade with discipline and focus on the trend.