October 22, 2021

businesscycle

Business Analyst

Improve your trade execution process with few easy steps

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Successful traders are not worried about their losing trades. They know it very well that they can’t avoid the losing trades. On the contrary, new traders are always looking for an easy solution to deal with the losing trades. They are taking complex decisions and trying to win all the trades. But this is not the way by which you can become a profitable trader. Instead of doing that, you should be focusing on the key techniques by which you can improve your trade execution process. It might take some time to learn the advanced way to deal with the market dynamics but once you learn this technique, you should be able to execute the trades with a high level of accuracy.

Today, we will teach you the proper way to improve your trade execution process. Go through this article carefully as we will give you some amazing tips which can change your life.

High-frequency trading

If you rely on the high-frequency trading model, you have to comprise quality trade execution. By executing too many trades, you are just losing the ground to find reliable trade signals. So, try to execute 2-3 trades per day. In fact, some of the professional traders only execute 1 trades per week. You don’t have to trade more to earn your living. However, if you still intend to master the high-frequency trading method, we strongly recommend that you gain strong knowledge in the trade management sections. Unless you do that in a systematic manner, you will never be able to manage your losing trades. And do not forget to maintain the risk to reward ratio. The minimum risk to reward ratio in each trade should be 1:3 or more.

Analyzed the spread

To improve your trade execution, you should also trade the market with a premium broker. A good broker will offer you a tight spread and thus you can cut down your trading cost. Moreover, the commission is charged by the elite brokers like Saxo markets compared to the other brokers in the market. Some of you might think the low-end brokers can offer you the best spread during the trade execution process. But this is not all true since you will face heavy slippage even in the normal market condition. So, consider your broker platform so that you don’t have to take the trades with a big spread. And try to trade the market with a broker who has a proven track record in the trading industry.

Analyzing the important data

You don’t have to analyze too much data to find reliable trade signals. For instance, if you intend to trade in the GBPUSD pair, you may focus on the fundamental news related to Great Britain and the U.S economy. You don’t have to deal with the economic conditions of other countries. So, try to know about the important elements which you need to assess during your trade execution process. Some people think by analyzing tons of data they can find the best trading signals. But this is not all true. In fact, it will force retail traders to lose money from most of the trades. So, focus on the important market data to execute the quality trades.

Price action trading strategy

You must learn to take the trades with the price action confirmation signals. Price action trading strategy allows retail traders to execute high-quality trades even in complex market conditions. You might be thinking that the price action trading method is a tough task. But if you start learning about the single candlestick pattern, you should be able to find reliable trade signals with a great level of ease. Once you become comfortable with the single candlestick pattern, you may switch to the complex pattern. But make sure you learn this trading method in the demo account. Keep on practicing in the virtual trading account till you become confident with your actions.