The best trading approach in spread betting industry

When you see two teams are playing football, you will find that there are two strategies at work . One is defensive and another is the offensive. If the one team start attacking the other team and are trying to create a chance to score a goal, it is called the offensive approach. The other team will go into the defensive formation and they will try to prevent the goals from being scored. What is the best approach in your view? Most people will answer that the offensive team is doing the right thing because they are creating pressure and giving no chance to players on the other team.

They are holding the ball most of the time and they are trying to goals. If there are 10 tries, chances are one will be successful. The professional and wise people have different views. They think the defensive team is doing the right thing. There is saying that the defense is the best offense. This is also true in currency trading. Instead of going all in with your investment, you should try to protect your savings from being lost. This article will explain why defense is nearly always the best trading approach.

Learn to trade the key levels

There are many traders who love to trade with indicators.But do you really think indicators will help you to find the great trades? If you are not sure, start using the demo accounts to assess your trading system. Being a new investor, you should start learning the details to find the key support and resistance level. In fact, the majority of the traders don’t have any clear idea how to use the spread betting platforms. Learn the advanced use of your trading tools as it will boost your confidence level. Most importantly, it will help you to trade the key levels with the extreme level of precision.

Focusing on the fundamental factors

Fundamental analysis will always help you to secure the big trades. Those who wonder why they can’t ride the long-term market trend don’t really understand the importance of fundamental factors. The fundamental analysis allows the traders to know about the strength of the market trend. Most importantly it helps them to secure the good trades in extreme market conditions. Learning the art of fundamental analysis might seem a little bit complex but if you start with the basic concept, things will get easier. Try to be an organized trader as it will boost your confidence level which will eventually help you to become a better trader.

The defensive approach focuses on saving your capital

It is the most important thing in your career. The capital, the investment or the deposit, whatever you say is the life of your trades. If you ever lose this deposit, your account will be closed and you can no longer place your trades. The main focus of trading should be on saving the capital from  market volatility. Every time you place trades, there is a risk that the trade will go wrong. Imagine you have deposited 10 dollars and you have placed 4 trades. Every trade has a risk of 2 dollars and if you lose all the trades, you will be only left with 2 dollars in your account. Winning in football is not decided by which team played the most beautiful game. It is decided by which team has scored the most goals. The same way success in Forex is counted. If you place many trades and you invest all your money but still you do not get the expected result, you will lose. A trader who has only placed a trade but still has not lost money is the successful trader. When you are defensive, you automatically keep your focus on not losing your investment and this is how small profit grows your account into a bigger account. Place your trades defensively and you will make more money than other traders in Forex.

Comments are closed.