You might be wondering that becoming a successful ETF trader in less than six months is impossible. Though this is a tough task you can easily become a profitable ETF trader by using some strategic rules. But if you make any mistakes in following the rules, we can assure you that it might take more than years to learn the process of ETF trading business. The forex market is extremely volatile in nature and finding reliable trade signals is a very tough task. Unless you take proper steps and follow the core rules, you will never know what it takes to become a successful trader.
In today’s article, we are going to learn about the critical process by which you can master ETF trading techniques in less than six months. So, without any deadly let’s get into the details of this article.
Learn the technical factors
The first thing which you need to consider is the technical factors. Without learning about the technical factors of the market, it will be a big challenge to overcome the major obstacles at trading. You may think that technical analysis is not necessary to find reliable trade signals. But in reality, without doing the proper technical analysis, you will never find the exact spot to buy the trading instrument. While doing the technical analysis, try to focus on the higher time frame data. By doing so, you should be able to make the overall trading process much easier.
Study the news data
Very few people actually pay attention to the news data. Most of the time, novice traders are taking their trades without assessing the news factors in the market. So, whenever major news is released, the market becomes extremely volatile, and the traders lose money. Click here and learn more about the impact of the major news. But do not try to trade the market based on the news data only. You should learn to evaluate the news and technical data simultaneously and only then you will be able to find reliable trade signals in the market. Learn this process in the demo trading account so that you don’t have to lose any trade.
Creating the trading strategy
It might take a month or two to learn about the technical and fundamental factors of the market. But you can’t take the trades based on these two factors. You should create a professional trading strategy by using the demo account. Use your knowledge to create the draft trading system. Once you have curated the draft trading system, you can start focusing on your trading performance. Back-test the trading performance in the demo trading account and see if you truly can make a profit. Based on your backtesting results, you have to bring positive changes to your trading system to find the very best trade signals. Once you do that, you can expect to make a consistent profit.
Revise your risk management plan
You should not trade the ETF market with the regular risk management plan. You must learn to focus on the risk management technique no matter how good the trade signal is. Being a new trader, you may risk 2% of your account balance at the initial stage. If you feel comfortable with the 2% risk management policy, you should be able to trade with real money. So, invest a small amount of money and check your trading performance. If you feel stressed in the real trading environment, you may lower down the risk to 1%.
Keep on trading the market with the small capital for another two months and try to gain confidence. Based on your mentality and depth of understanding about this market, it might take more than six months to master the art of ETF trading, but it is absolutely normal. So, have faith in your actions.