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How to Become a Better Trader in Synthetic Indices Market

How to Become a Better Trader in Synthetic Indices Market
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Just like in every financial market, profitable trading in Boom and Crash markets comes with its own set of rules which must be obeyed. To become a better trader in synthetic Indices market, flexible adherence to some trading rules will makes trading enjoyable and easy.

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Understanding a type of trader in which a person is natured is one of the great ways to develop an adventurous life in financial market trading and become a better trader in synthetic indices market. This is because, in trading, the market has different ways to communicate what it is doing. However, due to the inability of most struggling traders to understand these languages, most of them do not end up profitable.

One of the basic ways in which the market communicates what it is doing is by helping us realize the kind of trading concepts in which market participants (the bears and bulls) is about to resume. To understand this, the secret lies in time frame observations and combinations.

Understanding time frame combinations is a great way to become a better trader in synthetic Indices market. This is because different time frames were made for different traders to use for analysis, entry and exit. In other words, different kind of traders do not focus on the same time frame for their analysis, entry and exit.

Once a trader knows what a particular time frame is saying, such a trader can intelligently follow the market from its inception to where it is actually heading to without having the FOMO (fear of missing out) feeling. This is because such a trader will be able to predict where directional price movement will begin and end.

How to Become a Better Trader in Synthetic Indices Market

In this series of how to become a better trader in synthetic Indices market, we will be looking at the different kinds of traders in the Forex Market

Different Kinds of Traders in the Forex Market

To understand this, it is good to highlight that market participants (the bulls and bears) will make or help price to move in the following concepts using different timeframes.

Position trading:

A position trader is a type of trader that is very patient and exercises a high level of emotional control. He/she may not be easily moved by the swing moves of price as they look beyond temporary price fluctuations and pullback. Position traders usually focus on a getting a bigger picture of the market. This enables them to see the big moves in which price is yet to make and focus their analysis from that timeframe of focus. Position traders focus their market analysis from the monthly timeframe and observe a structural alignment in the weekly and then make entries or exit using the daily timeframe. Position traders have no business with timeframes lower than the daily since their trades usually run from weeks to months.

Swing trading:

A swing trader is also a patient kind of trader with an enormous level of emotional control. They use the weekly timeframe as their primary timeframe of focus and observe a structural alignment in the daily and then make entries or exit using the hourly timeframe. Swing traders have no business with timeframes lower than the hourly. Swing traders usually do not have more than 3 favorite assets just like position traders. They focus all their energy to study, compare and take personal lessons on their favorite assets. Swing trading just like position trading usually leads to swap (a little commission in which your broker takes from your open position when it runs into a new trading day).

Day trading:

A day trader is a person whose trading position begins and end within 24 hours. They do not allow their trades to run into a new trading day. Hence, they avoid swap. Day traders usually take quite a few open positions and have not-so-much assets to trade per day. In other words, day trader usually keeps their eyes on 4 to 5 favorite assets per time. They focus on the daily timeframe as the primary timeframe while the hourly timeframe is used for their structural alignment. Entries and exit are usually being taken on M30 timeframe. Day traders may or may not make indicators their absolute ally. Rather they may see indicators are confirmatory tools for trading just like position and swing traders.

Scalp trading:

A scalper is what I usually call a busy trader. I call him so because he/she is the busiest kind of trader in the financial market. He focuses enormous amount of energy and time on the charts. This is because he does not allow an open position to run for too long. And for this reason, he is known to take multiple trading positions per trading day. Scalpers may usually practice the habit of switching from one market to another to search for opportunities and they are usually they most impatient kind of traders. For this reason, they can trade as many as ten (10) different markets in a day with multiple positions. To add to this, scalpers are masters of indicators since they have little to no thinking time. They rather allow their indicators to do most of the thinking for them. I have to note here that scalping is a very dangerous adventure for beginner traders. Only professional traders really know how to go about the scalping business profitably. For beginner traders who begins the trading adventure as scalpers, they usually end up as culprits of deceit and scam since they are always seeking for a holy grail strategy.

To understand the relevance of this topic, a trader needs to know a specific time frame in which he can draw analysis from. This is because, what price says in each specific timeframe is very important. For instant, looking at Boom 1000, it is obvious that the price is on an uptrend. However, when the monthly timeframe is being considered, one will observe that there is a rejection pin bar candlestick formation. For that reason, we have the weekly and daily retracement or pullback that has existed for more than two weeks now. Having known that B1000 is on an uptrend, a good look at the monthly candlestick gave a retracement signal in which the weekly and daily is playing out perfectly. For more details, kindly watch the attached video in this publication.

Advantages of Understanding Timeframe combination in Boom and Crash

And there are no disadvantages to staying where you know you can trade successfully……

N/B: information provided in this material is given out of personal observation and study of each of these assets, their uniqueness, differences in the volatility rate and price movement. For now, references are not included in the study because readable assets on synthetic indices is rather very rare to come by.

If this publication has been helpful to you and you desire to know more about Boom and Crash trading, kindly visit our YouTube channel at https://www.youtube.com/c/juvirtrades

For mentorship and coaching, you can contact me through email juvirtrades@gmail.com.

Also, you can open a free demo/real account under the Deriv.com platform by clicking here

You can also reach me on Telegram or direct call on +2348027790183.

Disclaimer

Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.


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