US30, often known as the Dow Jones is very hard to trade. It is the average price of the top 30 companies in the USA. Due to the extreme nature of the price movement, it becomes hard for retail traders to predict the movement in the US30 most of the time. Even if you manage to predict the price movement in the US30, it will be hard to overcome the challenges. You have to use a wide stop loss and focus on the core factor of the market. Most importantly, you can’t execute a trade without doing the complex market analysis. To be on the safe side in trading, you must learn some amazing techniques you can use to trade the US30 with ease.
Use wide stop loss
Those who prefer to trade the market with tight stop loss should not try to trade the US30. The price movement is so volatile it becomes impossible for retail traders to trade with tight stops. Within a minute, you can expect 100+ pips movement in this asset. So, if you expect to trade this asset with a tight stop loss, it’s obvious that the market will hunt down the stop. To protect your trading capital, you follow the conservative method of trading. This means, you should trade the market with wide stop loss and it will allow you to protect the trading capital in the long run. To protect your investment, you should know how to use the wide stop loss. Taking a high risk and trying to use a wide stop loss doesn’t make any sense.
Rely on the candlestick pattern
The professional Dow Jones traders at Saxo always rely on the candlestick pattern. The candlestick pattern trading method allows the retail traders to make a decent profit even though they know a lot about the market. With the help of candlestick, you can fine-tune the trading method and find some good trade setup. The reason for why you should rely on the candlestick pattern is because of the quality of the trade. Every candle tells you a different story. If you know how to assess the story of the candles, it is very normal that you will be able to execute high-quality trades without having any trouble. Remember thaty trading is not a tough task but retail traders always make it hard for themselves. To be on the safe side in trading, you must learn this technique while taking trades in the Dow Jones.
Lower your risk exposure
Due to the extreme volatility of the market, you must trade the US30 with a low level of volatility. If you execute a trade with a high level of volatility, it will be hard to overcome the losses and you will lose money most of the time. The professional traders always encourage the new traders to trade the demo account first. By using the demo account, you will get a generic picture of taking the trades in the market. You might be a new trader but you have a lot to learn from this market. Unless you feel comfortable with the amount of knowledge you have about the market and your risk management technique, you should not try to trade the US30.
Study the news
If you intend to trade the US30, you must study the major news. Without studying the major news, it will be impossible to make a profit in the stock market. Those who are making money with technical analysis are very lucky. But luck is a luxury that you can’t afford as a stock trader. We must rely on our skills, like the top traders in Hong Kong. Then it will be easier for you to take trades in the US30. Always remember, trading is just a simple task for the retail traders. If you can stick to the core concepts of trading while trading the news, you will be able to earn more money.