Volatility 75 (V75) is one of the synthetic Indices available only on Deriv. As a volatile asset, V75 can guarantee good returns on your investment as well as helps you to blow your Forex account if you are not careful. I have been trading V75 for the past one year and I must admit, if you understand the basics of price action, you will enjoy Volatility 75.
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Unlike Boom and Crash with their sudden spikes, Volatility 75 is a steady, reliable asset that obey all the rules of price action. With that being said, there are some certain rules you must follow, some principles you must develop in order to become successful in the market
Table of Contents
How to Grow Your Forex Account with Volatility 75 (V75)
Let be realistic you are not going to win all you trades; in fact, it is practically impossible to win all your trades. This is the reality you have to deal with once you decides to become a Forex trader. There is always liquidity gaps, market structure violation and the influence of the big players in the market, that may warrant you to close your trades in red.
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If you close your trades in red based on the stuffs I mentioned above, it’s very okay, but if you close your trade in red because you are just gambling in the market, you will most likely blow your account. Market structure violation don’t happen often, so if it happens and the market takes a little from your equity, just buckle up and wait for a correction in order to recover your loses.
Let’s look at how to grow your equity trading Volatility 75.
Work on your Lot size:
No matter your analysis, please always use conservative lot size when trading V75. Personally, I advised people not to go beyond 0.002; if you are using a big account, you can apply the same technique as the market makers by breaking your entry into 3 to 4 entry with small lots.
If you are using $100 or below account, PLEASE don’t go beyond 0.001.
Don’t stack trade randomly
I occasionally stack trades with small lot because of my equity. The reason I advised against stacking randomly is that, most times the market may want to take out a liquidity gap before continuing on a trend, so if you have a small equity and you stack randomly, the outcome may adversely affect your equity.
Stack at the right time when you have the equity, avoid the temptation of stacking randomly, having a healthy margin is good for your equity.
Make price action your only Special indicator
V75 obeys price action, study, research and understand price action. Analyze your trade from D1 and H4 to spot the overall trend, then come down to m15 or m5 to take your entry based on Support / Resistance and your trendlines.
Most people make the mistakes of putting all sort of indicator in their chart, which can make them to miss those great entry points in the market. Once you identify the swing low and swing high, draw your trendlines and mark some points of interest (POI) in the chart, just wait for the price action to get to your POI before entering the trade. There is always the ‘M’ and ‘W’ formation in V75, if you can spot it and enter any of them you will enjoy the market
Don’t Trade without Stop Loss
If you are selling, put your stop loss slightly above the next HL from your entry position, if you are buying put your stop loss below the previous LH after your entry position. Then use trailing stop to secure some profits once your trade start moving in the blue direction.
Grow steadily and slowly; don’t aim too high
Don’t think of making all the money in your first day of trading; have a target based trading plan and follow your daily loss/profit target to the latter. When I started my daily target was either $20 profit or -$20 loss, and I follow that pattern till I increase it to $50, $70 and now $100.
Final Thoughts.
Try and add V75 to your trading asset this year, open a free demo by clicking here: Please note, Volatility 75 is very volatile, highly risky but very rewarding. Look at your risk appetite before investing your money.
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.
Ive caught a typical example of M and W shape formation this morning.
Very Helpul
Thank you very much
Great article. Really explained the major concepts of trading synthesis
Very great I have picked wonderful ideas
THANK YOU SO MUCH
Thank you for the great insight. This is very good for sure and simply straight forward advise and my to be rules. God bless you.