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Using the 100 day SMA like a pro trader

Using the 100 day SMA like a pro trader

Indicators are often considered as blessings for the rookie traders. By using the indicators you can easily find the best possible trades and trade the market with an extreme level of accuracy. Sadly the new traders don’t know how to use the indicators in Forex market. They always take unnecessary risk and make a big mistake. They make the trading system overly complex and loses a big portion of their investment. Being a new trader, in Hong Kong, you might face an extreme level of difficulties with your trading profession. But if you learn the use of 100 days SMA, you will never have a tough time with trading. Let’s learn the proper way to use the 100 days SMA.

Use it in the higher time frame

Those who are relatively new to the trading profession might not understand why you are saying it 100-day SMA.it means you will be using the 100 periods simple moving average in the daily time frame. The 100 SMA acts as dynamic support and resistance level. If you manage to trade the market with an extreme level of accuracy, you can easily make a huge profit. And this is where you need to use the 100 days SMA. If you install the chart in the daily time frame, you can easily find the potential to take profit and stop loss level. Being a new trader, you should use it in the demo account so that you can easily develop your trading skills without risking any real money.

Trade with the major trend

Most of the new traders in Hong Kong knows the importance of trend trading strategy. To find the best possible trades in your trading platform, you must use the 100 days SMA along with the trend line. If the dynamic support or resistance level of any currency pair coincides with the 100 days SMA, you can easily execute the trade and make a huge profit from this market. Though this trading technique is extremely profitable, you should never risk any amount which you can’t afford to lose.

Use proper risk management

Never risk a huge amount of money in the Forex market as ruins your trading career. Try to follow the conservative trading technique so that you can easily make a profit at any market condition. Trading is an art. Unless you know the perfect way to find the best possible trades in this market, you should never trade the market with real money. Use the demo account to develop a simple trading technique without risking any real money. Once you have the perfect trading system, use the 2% rule of money management to protect your trading capital.

Trading the high impact news

By using the 100 periods SMA or 100 days SMA, you can easily trade the high impact news. Most of the time the market exhibits false spike during the event of the major news release. So, if you set pending orders right at the dynamic support or resistance level, chances are very high you will get a decent profit. But this doesn’t mean the trades will execute all the time. Being a currency trader, you need to prepare yourself for the worst-case scenario. Never take the huge risk during the major news release since it might blow up the trading account.

Conclusion

Learning to use the 100 days SMA is an art. If you want to succeed in trading you must focus on simple logic and trade the market with proper discipline. If possible use the price action confirmation signal since it will boost your profit factor to a great extent. Once you feel confident with the 100 days SMA, you can try to trade the market with the 200 days SMA. Before you use new settings in the SMA, backtest the trading strategy to assess your trading strategy.

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