Exploring Best Trading Strategies that maximizes your profit with Olymp Trade

 A variety of factors influence your trading results. Some of them are beyond your control, but you can constantly improve your psychology and money management. These abilities, however, are useless if you are unable to predict the asset price.

Finding a good entry point is the first step in making a successful investment. This is something that neither strong psychology nor competent money management can assist you with. During each trading session, it is critical that you understand when to open an up or down trade.

This article discusses the most widely used and effective trading strategies.

Select a Trading Terminal That Is Simple and Easy To Use

A trading terminal is a piece of software or an interface that enables traders to trade in financial markets. We do not recommend that a novice trader start with well-known trading platforms like Thinkorswim or NinjaTrader. These solutions are difficult to comprehend and will only deter a novice.

The first terminal should help you understand what each button does, how to open the first position, what the difference between a training account and a real account is, and so on.

In this case, the Olymp Trade trading platform is ideal for inexperienced investors. Why?

• There are 10,000 units on a demo account that you can reset for free here (if you suddenly lose all the demo money).
• You can learn the fundamentals of trading right on the company's website.
• Olymp Trade Broker is a trustworthy and certified company.

Using Technical Analysis Patterns To Analyze Trends

One of the most common types of market analysis is technical analysis. Traders began actively researching it at the turn of the twentieth century. They have developed a set of working patterns over time. Patterns became a subset of technical analysis. It's a type of chart movement strategy. A trader can open a trade in the right direction if the current asset chart resembles some pattern.

The gold chart served as an excellent example. The asset has developed a "head and shoulders" pattern. This is a reversal pattern that indicates a change in trend direction. It is made up of three parts: a left shoulder (L), a right shoulder (R), and a head (H).

Support and Resistance Trading Strategy

First and foremost, we'd like to discuss the most effective trading strategy for Olymp Trade. Markets are trading in a range 70% to 80% of the time. That is, it does not happen frequently, and you will notice a price range in which the market is moving.

Look through the chart for prices where the market has turned around more than once. The theory concept underlying this trading strategy states that prices are either cheap or expensive. Many traders are eager to buy or sell at these prices. Furthermore, large traders frequently require more than one market price test in order to get all orders into the market.

Price zones are depicted in the image above. It is critical to understand that the market does not always announce an exact price. The market is mostly turning around in certain areas. You should mark price ranges to find a good entry for better results. This strategy can be combined with technical indicators to confirm whether the market is overbought or oversold.

Diversification of Trade

Another strategy for account security. Trade diversification entails lowering trading risks. It essentially entails the simultaneous trading of various assets that are unrelated to one another.

Many tradable assets in the financial markets are linked to one another. For example, the US Dollar (USD) is directly related to Gold (XAU) in the sense that a positive movement in the Dollar is nearly equal to a negative movement in Gold.

This is due to fundamental economics. Because gold is regarded as a "safe-haven" asset, when the US economy falters and risky assets such as stocks and the currency begin to fall in value, investors will naturally shift to gold. This will raise the price of gold. And if the economy improves, investors will abandon gold.

Economic News Trading

Economic news is possibly the most important market mover. Economic news in this context refers to events, speeches, reports, and statistics that can be used to forecast future economic trends.

Economic news that has a significant impact on future economic direction causes significant price movements in the market. It is not uncommon to see large candle movements in instruments such as gold, currencies, and even stock indices following the US Federal Reserve Bank's periodic Federal Open Market Committee (FOMC). The economic calendar, which provides information on the type of report, expert forecasts, date and time of publication, allows us to know the schedule of such releases in advance. More on the economic calendar can be found here. You'll learn how to tell the difference between a major event and a minor one, and you'll get a list of major reports that almost always cause trend turbulence.

There are two ways to use news:

• To protect your account: if you are aware of impending economic announcements, you should immediately withdraw from any trades in instruments that may be affected by such news. For example, for the monthly Non-Farm Payroll (NFP), you should avoid major currencies, gold, and US stock indices, among other things.
• To improve your account: On the other hand, if you use the news correctly, it can be a source of good profits for you. There are several news trading strategies available, but we will not recommend any of them. We strongly advise you to test them on a demo account before implementing them on your live account.