4 key steps to trade the Dow Jones like a pro
Dow Jones which is often known as DJIA or the Dow Jones Industrial Average is a very popular market for retail investors. The big players are also taking part in this market to secure insane profit. The reason we are telling you that you can earn an insane amount of money by taking the trades in the Dow Jones is the price volatility. In a minute the price movement can easily exceed 100 pips. So, if you know how to scalp you make an insane return. On the other hand, those who love to trade with the position trading method can also secure a decent return from this system.
Don’t get happy seeing the profit potential in the Dow Jones. When the profit high the risk also very high. So, if you fail to manage the risk efficiently, it would be a tough task to survive. You will make your financial condition much worse. Let’s learn about 4 key steps by which we can trade the Dow Jones like a boss.
Learn about the market volatility
The first step is to learn about market volatility. If you ask a new trader about the Dow Jones, he will say, that this market is manipulated. That’s why we recommend the novice traders in Singapore to learn more about market volatility. For that, you have to study the historic price movement of the financial instrument. It will take less than a month to learn about this market and you get habituated. But the big problem is, you can trade with a small lot at Dow Jones or US30. If you open order with 0.01 lot, the value of each pip will be $1. So, it’s obvious that you will need a very big account to survive. But if you are good at analyzing the pivot point and take trades with the help of the price action signal, you will be able to trade with a small account.
Trade with the best broker
To trade the US30 like a pro, you must trade with the best broker. Visit company website of Saxo and you will know the key feature of a great broker. Saxo offers premium service to their client so that they can earn more money. By choosing a well-reputed broker you also ensure the safety of your trading capital. No matter how much money you invest with the big broker, you will be able to withdraw the profit with a great level of ease. So, choose the broker with a great level of caution so that you don’t have to lose too much money in trading. Try not to focus on the cheap brokers as it can create a massive level of confusion.
Trade the continuation chart pattern
You should learn to trade the continuation chart pattern as it will improve performance. Trying to trade the reversal chart pattern create a great level of risk and it eventually pushes the trader to a great stress level. You can’t do well while taking the trades at US30 under heavy stress. The stress point should be minimum and you should be looking to trade with a low level of risk. If you can master this technique, your chances of surviving in this business are very high. Most importantly, you can ensure a steady cash flow in the market.
Get ready to learn advanced risk management technique
You must learn advanced risk management techniques to trade the Dow Jones. Without having the skills o manage the trades with advanced techniques, it will be a hard task to make a consistent profit. Learn from your mistakes and try to improve your skills with time. Stop chasing the complicated market dynamics and create a unique method so that you can make huge gains from this market. But don’t get too aggressive or too conservative while learning advanced risk management techniques.