If you are looking for a profitable asset to trade on Deriv, then try the Step Index. I first encountered the Step index during my low point in the market and my first experience was not good. I had a 200 USD account and I blow the account in just 30 minutes of trading Step.
Learn the Secret of Forex Trading, Click here to download a free e-book now
I was not happy so I deposited another 100 USD and started revenge trading; luck was on my side so I recovered up to 70% of what I lost in about one hour. But that approach was very wrong. After that day, I returned back to my demo account and start learning more about the market. It took me about 5 days to come up with a workable strategy and almost one months to perfect that strategy.
My golden rule in trading is once you find a strategy that works for you, stick with it, there is no gain in running after every strategy that you see. You will lose some trades, but with constant refining of your trading strategy, gains is imminent. Always remember, no strategy is 100% perfect.
So let dive in; please note, this is what has helped me to be consistent in the past years in the Forex market, it not only applicable to Step Index, you can use it to trade Range Break, Volatility indices, Crash and Boom and Currency Pairs.
Table of Contents
How to Trade Step Index Successfully
1. Target one good set up at time
I am a price action trader, I love listening to the candle sticks and the market structure to informed my decisions. The fact is, there are more than 3 good set up in the market every day, you just need one of those set up to make your profit and leave the market for others.
This is what I do every day. I currently have an equity of over $4000; I monitor the set up from Daily, H4 and HI, then use M15 or M5 to find an entry. If you have a low equity account; use M1 to find an entry after seeing a set up on higher timeframe so that you can have a tight stop loss on M1.
I am a fan of take profits and Stop loss, the only way I can close in red before it reach my stop loss is if I spot a market structural violation. So search and spot a good set up, maximize it and exit the market immediately after you hit your daily target
2. Avoid Low probability trades
There is no question about this; trading forex is risky, the only way to minimize this risk especially when trading Step Index or any other Forex asset is to avoid low probability trades. If you want to be a successful trader, you have to stop all those 10 seconds trades. If you cannot spot a good set up that can give you a leverage to stay at least 10 minutes long or short on a trade please stay off the market.
Don’t get me wrong, I am a big fan of 1 minutes, 2 minutes trades if it a high possibility trade and is informed by the market structure not greed.
3. Find a Strategy that works.
There is no overnight success in the Forex, forget all those YouTube Forex Billionaire, things are not often the way they seems; if you are not ready to invest your time and resources to study materials, videos and the market to define a strategy that works for you, then you are not ready to make profit.
Even though, I am making an average of $100 daily trading Step Index, I am still studying the market, books and materials to update my strategy. I don’t study to look for strategy, I study to enhanced my strategy.
If you are struggling in the market, this is what you should do now; Open a Demo Account, you can open one by clicking here. Start by using the naked chart first. Learn how to understand the market structure, candle stick pattern, before you start adding indicators like Fibonacci to spot some key levels in the market. If you understand market structure and candle stick flow, you will be able to identify good market set up, then you can use the Fibonacci to spot a good entry point.
You will start trading based on the entry points from Fibonacci on your demo, keep changing the Fibonacci level until you have a high probability spot that can give you at least 85% win opportunity in the market, if you can spot one or two of this, then you are on your way to being profitable.
4. Forget about the Money first, Master the art.
The reason most trader fail and quit too early is because their only goal in the market is to make money, they see Forex as a get rich quick scheme. Let me tell you this; Forex is just like the real World. In the real World scenario, we have billionaires, millionaires and the poor ; the different between each of them is the information and opportunity available to them and how they are willing to utilize them.
If you want to be successful, build your knowledge first, that is while all brokers have demo accounts. The demo is to help you build your psychology and strategy. Don’t rush in to a real account, if you are not successful with your demo account.
I always advise new trader to allow their trades to play out instead of rushing to close in profit when they see a little profit or close in red when they see a small red. As a trader, after analyzing the market, set Stop loss and Take Profit level, then allow your trade to reach any of the level, however, you can always move your stop loss into profit to secure some profit incase there is a market structural violation.
If you have any questions, feel free to drop a comment below this article and I will respond accordingly.
N/B: Trading Forex is risky, you can lose your capital, please apply proper risk management and trade with only what you can afford to lose.