You might be good at trading with the US stock market, but there is untapped potential in the DAX 30. Dealing with the DAX 30 is challenging but rewarding at the same time. In order to be successful, you need to know about the specific market dynamics and focus on the core concept of trading.
Also, the price volatility of the DAX 30 is not like your regular currency pairs. Due to the significant fluctuations, even more care should be given to analyze the market variables and take the trades carefully. Most importantly, be sure to study up on the tips below to avoid losing not only your shirt but your investments as well.
There are few important techniques you can use to trade the DAX 30 like a pro. If you follow the rules mentioned in this article, it’s possible to become a top trader within a few months.
Go Through Basics
Before you trade the DAX 30, you need to go through the basics first. By learning the details about the DAX 30, you will be able to execute high-quality trades without running into the normal issues beginners encounter. What frustrates most beginners is they expect it to be easier than it actually is. Novice traders tend to throw a chunk of money into the market and expect their money to double.
Unfortunately, most beginner traders lose much more than they make – unless they have someone who can help them avoid common mistakes. Luckily, there are several demo trader accounts online where you can get your reps in without having to pay with real money.
This site will help you start learning the basics and will take you into more profitable waters – when you’re ready. Take advantage of the demo account and see how the market is behaving. Once you become good at analyzing the price movement, it’s time to develop your trading method.
Some traders go through the basics by using a low-end platform – which doesn’t always work. To survive as a currency trader, you must learn to deal with the basics. Taking trades with the help of basic concepts is easy, but you must have the courage to deal with the ups and downs of this business.
Trade The Key Support And Resistance Level
You must trade the major support and resistance level if you want to become a top stock trader. Taking the trades at the minor support and resistance level is not going to work. To protect your trading capital, you have to take a look at the long term goals and trade stocks with discipline.
Through repetition and intentionality, you will slowly become good at analyzing the key support and resistance level after you learn the basics of this market. You will never know everything about the DAX 30; burn that fact into your mind right now. When you think you know it all, you will lose it all.
Draw the critical pivot level in the higher time frame so that you can execute the trade with a high level of precision.
Trade With A 1 % Risk
Due to the high volatility of the DAX 30, it becomes tough to trade with high risk. You must not risk more than 1% of your account balance in order to protect your trading capital. Things might be hard at the initial stage, but if you take the time to focus on the core concepts of trading, it will be possible to make money in the long run.
Trade With A Good Broker
To trade the DAX 30 like a pro trader, you must find a good broker. Without doing the market analysis with a broker, you won’t be able to execute high-quality trades. People always lose money because they don’t have the skills to find a good broker that is actually interested in helping them.
To start, interview as many brokers as you need until you find one that not only knows their craft but is willing to teach you. Remember, you are hiring them – not the other way around.
Armed with a competent broker, follow the tips of this article to trade with confidence and knowledge. Avoid risking everything in an attempt to recover a loss. Swallow your pride, accept the loss, and continue trading with the fundamental skills you learned in the beginning.
After you become skilled at analyzing market dynamics and mastering your own will power and emotions, you can actually use the markets to your advantage and increase your wealth.