Commodity trading is a very challenging profession. People who are trading in the long run, don’t have the basic skills to do the proper math. They are using their gut feelings and trying to earn a huge amount of money without doing the critical market analysis. To ensure the safety of the capital, you should learn to trade with the major trend. Once you master the art of trend trading strategy, you should be able to boost your skills. But for that, you must learn to take the trades with the major trend. The trend trading strategy is a very effective way to earn money. If you do these things in the wrong manner, you will be losing money most of the time. Today we will teach you how to find the trend in the commodity market.
Analyze the daily time frame
Finding the trend in the lower time frame is hard. You won’t be able to find the perfect trend in the lower time frame. For ease of use, a trader is requested to take the trades in the most complex situations of the market. Once you study the critical market dynamics in a daily time frame, you should get a clear idea to take the trades. Most of the time, the novice traders ignore the higher time frame since they consider it a waste of time. But remember, the trend is your friend. If you leave the trend, you won’t be able to earn enough. So, analyze the daily time frame so that you can do better results without having any major problem.
Use the best trading platform
People who are trading to win big money should find more info about the elite broker Saxo. With the help of the SaxoTraderPro, a retail trader can easily execute high-quality trades and make decent money without having any problem. It might sound silly at the initial stage but once you learn to take the trades in a disciplined manner, you should be able to boost your skills without having any major problem. Instead of sticking to the low-end trading platform. Use the best platform so that you can do the market analysis with a high level of precision. Always believe in your trading skills as it can boost your confidence level to a great extent.
Use some indicator
To find the trend in the commodity market, you should be using some of the smart indicators. Indicators are considered as the helping tools for the retail traders. Once you learn to use the indicator professionally, finding the trend is going to be very easy. For instance, you can use the 55 EMA in the daily time frame to find the trend. If the price of the asset trades above the 55 EMA, consider it as a bullish trend. On the contrary, if the price of the asset trades below the 55 EMA, consider it a bearish trend. But always follow a strategic path to execute the trade so that you don’t lose too much money in the learning stage.
Analyze the news
The news can tell a lot about the major trend. When you analyze the major news, you will be able to earn enough money about the market. Most people don’t have the skills to do the perfect market analysis. They are taking random trades and trying to win big trades without having any knowledge of this market. But when you study the major news, you get the unique chance to improve your skills. Most importantly, you get the idea where the price might head. But this will take some time. Never expect to learn fundamental analysis without doing the proper digging. Spend some time and know more about the critical market data to boost your trend trading technique.