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10 Tips to Successful Trading
<p>A solid plan for your online trading activities will provide a blueprint for your trading activities and define your goals.<br /> <br /> This, in turn, will help you stay on track and potentially avoid an undesirable outcome. Creating a trading plan involves a lot of moving parts.<br /> <br /> Creating a successful trading plan takes a little more than that. In this day trading guide, we’ve outlined ten essential steps every trading plan needs to have.</p> <h2>1. Understand the market <br /> before you start trading</h2> <p>A solid understanding of the financial market you are going to trade on is crucial for building a good trading plan. Having a strong knowledge base will help you navigate a large volume of information in a trading world confidently and make educated trading decisions.<br /> <br /> No matter what financial instruments you choose for your trading journey – forex, indices, commodities or others – there are three main points any day trader needs to focus on:</p> <ul> <li>Market terminology</li> <li>Unique traits of the market</li> <li>Factors influencing price movements</li> </ul> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/circle.jpg" /></div> <p>For example, in forex, price movements are measured in pips, while in all the other markets, they are measured in ticks or points. This unique trait of each market requires an understanding of the market terminology.<<br /> <br /> Factors influencing price movements in each market will also vary. Forex, for instance, is heavily influenced by economic reports from the home countries of the traded currency pairs, while the prices of commodities are highly dependent on supply and demand. As a result, forex will move in large swings when economic reports are released, (especially reports from the US, Eurozone, or Japan), and commodities will see a lot of movement after the announcements of shortages in supply. To identify trading opportunities presented by such events, you need a clear understanding of what exactly influences each market.</p> <p>A good starting point to learn the basics of trading for beginners can be the trading guides on our website. Keep your demo account open as you go through any new information, and try to apply it in practice whenever possible.</p> <h2>2. Determine market conditions</h2> <p>Evaluating market conditions, in a nutshell, means identifying strong trading signals that present trading opportunities. To determine it, you need to be able to analyse the market you selected.<br /> <br /> There are two main methods of doing it – fundamental and technical analysis. The main difference between the two is the type of data used to predict future market movements.<br /> <br /> Technical analysis is based on the past price movements of an instrument, while fundamental analysis studies economic and financial factors that may affect the markets in future.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/fundamental_analyse.jpg" /></div> <p>At first, analysing financial markets may seem complicated and even intimidating. However, like with any other complex topic, you can start with a basic approach and advance little by little once you start getting a better understanding of how financial markets work.<br /> <br /> If you are just getting into day trading for beginners, it may be easier to start with news trading, identifying support and resistance levels and understanding some basic chart patterns. On the other hand, advanced traders can find trading signals in complex economic reports and technical indicators. Regardless of your experience level, you need to have a clear understanding of the analysis process you use before you start relying on it.<br /> <br /> However, whether you choose fundamental analysis, technical analysis or a mix of the two, it’s important to note that neither provides a guaranteed trading outcome. Any market analysis only indicates a potential price movement and could help determine your entry point.</p> <h2>3. Know where to enter the market</h2> <p>In trading, the entry point refers to the price level you are willing to open a trade at. While doing your market analysis, you will often see that sometimes the markets are primed for trading, while at other times it may be best to stand aside. If the trading signal you have identified is strong, you can open a trade right away. However, if you are unsure of the current market conditions or the available information is providing conflicting signals, it could be better to hold on and wait for a trade with a stronger signal.<br /> <br /> There will also be times when the signal seems strong, but your desirable entry point is not available on the market yet. In this case, you can place a pending order that will be executed only once the price reaches your specified level. Pending orders can help you manage risk and ensure that you enter the market according to your predetermined plan.<br /> <br /> To get some insights about the entry points as a trader, you can also keep an eye on the regular <a data-di-id="di-id-788ae628-c73859d3" href="/en/market-news/" rel="noreferrer noopener" target="_blank">market news</a> posted on our website by trading experts. Financial markets are unpredictable, and even experts can't guarantee the next price movement. However, they share valuable tips that may help you adjust and fine-tune your trades.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/laptop.jpg" /></div> <h2>4. Assess your risk appetite</h2> <p>New traders tend to have a strong aversion to risk and often focus too heavily on losses or, worse, refuse to close a losing position. They increase their risk exposure and believe that the market will return in their favour. Successful traders know there is a potential risk in every trade.<br /> <br /> That’s why setting an appropriate risk level before you start trading and sticking to it is one the most important steps of creating a day trading strategy. A wise day trader won't risk more than they can afford to lose.<br /> <br /> Determining how much of your capital you can risk per trade depends on your total trading account size and experience. Many traders use a 1-3% risk level as their control point, but beginners usually start with 1% to get comfortable with the idea. For example, if your trading capital is USD 10,000, you might decide to risk 1% per trade, which would be USD 100. However, this percentage should be based on your individual risk tolerance and trading strategy.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/risk-appetite_1.JPG" /></div> <p>It is not uncommon to experience strings of wins and losses, but whether you have a good day or your predictions are incorrect, it should not change your pre-determined risk level.</p> <h2>5. Understand your risk/reward ratio</h2> <p>A risk/reward ratio is a balance between how much you are willing to lose in order to gain a certain reward. Once you know your risk level, the next step is to set a desirable reward level. Just like with a 1-3% risk level, a 1:3 risk/reward ratio is widely considered appropriate among traders.<br /> <br /> It means you should expect no more than three points of return for every point you risk. So with a trading capital of USD 10,000 and a risk level of 1% (USD 100), your target return should not exceed USD 300. However, beginners often prefer to start with a lower reward level as well and set their risk/reward ratio to 1:1, which is USD 100 as a target return for every USD 100 of risk.<br /> <br /> In many cases, a reasonable reward goal will also depend on the instrument and market you are trading on. For example, you shouldn’t expect a 300-point price move from a market with a 100-point average range.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/risk-reward-ratio_1.JPG" /></div> <h2>6. Control your trading capital</h2> <p>The price movements on any trading market are outside your control as a trader. What you can control is the negative or positive impact any one of them has on your trading account. Risk management tools, such as stop loss and take profit, will help you keep your risk/reward ratio in check and avoid undesirable and unpredicted results.<br /> <br /> Generally speaking, every trade you place has only three possible outcomes:</p> <ul> <li>The market goes in your favour = you gain</li> <li>The market moves against you = you lose</li> <li>The market trades sideways = no gain and no loss</li> </ul> <p>To have control over your trading account, features are available to use such as take profit to lock your gains in successful trades and stop loss to limit your losses if the market moves against you.<br /> <br /> Following our previous example, for the trading account of USD 10,000 with a 1:3 risk/reward ratio, your stop loss could be set to USD 100 and take profit to USD 300. While many trading platforms will automatically calculate and display potential profit and loss for set take profit and stop loss levels, it's important for traders to understand how these levels relate to the price movement of the asset they are trading.<br /> <br /> As we mentioned earlier, following your predetermined risk level without changing it for already running trades is crucial. Many traders have made the unfortunate mistake of adjusting stop-loss orders lower and lower on a losing trade until they hit the point of ruin. Whereas other traders have adjusted take-profit orders higher and higher just to see their profits vanish as a trade quickly reverses against them.<br /> <br /> Sometimes you will find yourself in a third scenario, where the instrument you are trading on moves sideways for an extended period without bringing you the desirable gain and not triggering your stop loss. In such cases, traders often prefer to exit such trade manually, re-evaluate their trading plan and wait for a stronger trading signal.</p> <h2>7. Document your trading plan</h2> <p>The easiest way to re-evaluate your day trading plan is to go through each and every step of it and check whether the information you determined earlier is still relevant. That’s why documenting it is essential.<br /> <br /> Here are some example steps that could be included in any trading plan:</p> <ul> <li>Previous trading session review</li> <li>Existing trading opportunities analysis <ul><br /> <br /> <br /> <br /> <li> </li> <li>Macro-analysis of the current market – news, economic reports, other factors that impact markets</li> <li>Micro-analysis of the current market – review of charts and technical indicators</li> </ul> </li> <li>A defined entry point</li> <li>A defined risk you are comfortable with per trade</li> <li>Defined stop loss and take profit levels</li> </ul> <p>Every trading plan is unique and depends on the personal goal of a trader. You may follow the same steps or create different ones to match your personal trading needs – no matter which option you choose, documenting it could still help you stay on track.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/checklist_1.jpg" /></div> <h2>8. Put your plan to the test</h2> <p>Going through the motions of your trading plan is as important as documenting it. Use a demo account of your trading platform to test it in a simulated real-world market environment with no risk.<br /> <br /> Making an effort to practise trading on a demo account can help identify weaknesses in your trading plan and allow you to adjust it where necessary. To give your trading plan a real test, keep in mind that when trading with a demo account, it is critical to follow your plan and execute each step as if you were trading in a live environment.<br /> <br /> That means placing trades only if your plan signals it, respecting all stop-loss and take-profit levels and making adjustments or course corrections only after the end of a trading day, not during it.<br /> <br /> Many beginner traders make the mistake of not treating their demo account with the same discipline and mindset they would have for their live account with real money. As a result, when the same trading strategy is applied to a live trading account, the results will differ greatly compared to the demo account. Moreover, not following the predetermined actions will make it much harder to review and analyse your trading session later.<br /> <br /> That’s why it is important to stick to your trading plan to prepare yourself for transitioning from a demo account to live.</p> <h2>9. Remove emotions from the equation</h2> <p>Uncontrolled emotions are one of the key reasons traders abandon their trading plan and fail to achieve the outcome they seek.<br /> <br /> When you begin to trade, it is important to remove any non-related or outside influences from your environment to allow yourself to trade with a clear focus and have a better trading experience.<br /> <br /> Seasoned traders apply various techniques to eliminate emotions from day-to-day trading and follow the structure and discipline provided by a well-thought-out trading plan. Some of them use a daily ritual, such as a short checklist related to their trading plan. Others use a brief physical exercise to help clear their mind and sharpen their focus. It can be anything else that works for you personally as long as it helps to achieve the main goal – developing a process that will help you execute each and every step of your trading plan without deviation. Like any new skill you are learning, your trading process will soon develop a natural flow and become second nature as long as you stay true to it.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/emotions.jpg" /></div> <h2>10. Find out what type of trader you are</h2> <p>nce you run your trading strategy a few times, you will start noticing that some trades work better for you than others. That’s when you know it’s time to find out your trading personality.<br /> Understanding your own trading personality can help you achieve the most positive experience and results from your trading. Some traders are better suited for high-volume, short-term trading, while others thrive using a slower long-term style.<br /> <br /> Determining what trading style works better for you is just as important as knowing the personality of the market you decide to trade on. There are many assessments available online to help you learn more about yourself in a trading environment, as well as numerous books and articles written on trading psychology and behavioural finance. Explore who you are as an individual and how that can apply to your trading psychology and strategy.</p> <div class="text-center"><img class="w-75" src="/TMXWebsite/media/TMXWebsite/human_1.JPG" /></div> <h2>Bonus: 11. Apply discipline and consistency</h2> <p>There is no ultimate success route to trading, but as with many things in life, being disciplined and consistent could be seen as key. It may take more than one try and some patience to find out whether a certain strategy is working.<br /> <br /> Beginner traders often give up on their plans as soon as they face their first loss and move to another strategy hoping it will work better. Stay disciplined and consistent, study the details of your trading sessions and plan your next steps only with a clear understanding of what works well and what doesn’t.<br /> <br /> Ready to get stated with day trading? Start with ThinkTrader. Our award-winning platform gives access to over 4,000 financial instruments, market news and multiple analytical tools to help you define your trading plan.<br /> <br /> Try it now on the <a data-di-id="di-id-8245fa02-6d05b691" href="https://web.thinktrader.com/account/login" rel="noreferrer noopener" target="_blank">web</a> or download the app [QR code]./p></p> <p style="text-align: center;"><img alt="" class="w-25" src="~/getmedia/e1074687-a223-4ed5-a7a2-540d16d4b2cd/QR-code_1.png?width=200&height=200" style="width: 200px; height: 200px;" /></p> <p style="text-align: center;"><a class="button large hollow secondary" data-di-id="di-id-89b33f44-3ddfd855" href="/TMXWebsite/media/TMXWebsite/10-tips-to-successful-trading-pdf.pdf" onclick="DownloadFn()">Download the pdf</a></p> <p> </p>
How to start trading the markets
<h2 id="how-to-start-heading-unique-id-1">Step 1 – Apply for an account with us</h2> We offer a wide range of financial instruments to trade across two of the industry’s leading platforms: MetaTrader 4 (MT4) and our very own ThinkTrader®. Simply apply for an account and provide us with the requested documentation and once approved, we’ll provide you with your login details to access your trading account for the very first time.<br /> <br /> <a href="https://portal.thinkmarkets.com/account/register/live?lang=en" id="button-one">Apply today</a><br /> <h2 id="how-to-start-heading-unique-id-2">Step 2 – Time to fund</h2> Once your account is opened you’ll be able to fund it and place your first trade. Funding your account is simple with our online client portal, ThinkPortal. In ThinkPortal you’ll have access to a wide list of funding options, from credit/debit card and bank wires to local payment providers and digital wallet services. The funds will usually be in your account within 12 hours and you’ll be ready to place your first trade.<br /> <br /> <a href="https://portal.thinkmarkets.com/" id="button-two">Fund your account</a><br /> <h2>Step 3 – Let’s get trading</h2> <p>Now that your account is open and funded, you can take that final step and open your first position. Here are a few pointers to help you get started:<br /> </p> <p>Remember – never place a trade that you’re not sure about. Your investment is at risk with every trade you place, so make sure you’re fully behind the decision of placing the trade before hitting the button.<br /> </p> <p> </p> <ol> <li> <p>Understand the markets – ensure you know what you want to trade and when to trade it. Our market analysis section provides plenty of market insight on a daily basis and becoming familiar with our analysts and their articles can be a helpful place to keep track of market news and trading opportunities.</p> </li> <li> <p>Know the platform – before opening your first trade we highly recommend that you become familiar with the platform of your choice. Explore the different platform features and ensure you’re comfortable with the settings before opening the order ticket for the first time. Read about our ThinkTrader® and MetaTrader 4 (MT4) platforms <a href="/en/platformoverview/">here</a></p> </li> <li> <p>Place your trade – once you’re comfortable within the platform, identify the trade you want to make and how you plan to execute it, open the order ticket, set your parameters and place the trade.</p> </li> </ol>
Trading 101: Dynamic leverage – what it is, how it works, and more!
<p paraeid="{0188ab9a-1a10-4ca0-a0cd-0e583ff40dfe}{250}" paraid="278386506">ThinkMarkets has just launched its new set of account types. With it comes a powerful and advanced tool that can help improve your trading experience – Dynamic leverage. <br /> </p> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{5}" paraid="1688564561">This comprehensive guide aims to help you understand the mechanics of dynamic leverage, what it is, and how it works, more importantly, how you can use dynamic leverage to maximise potential profit while minimising risk exposure. </p> <h2 aria-level="2" paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{23}" paraid="1399599748" role="heading">Understanding dynamic leverage: What it is </h2> <p aria-level="2" paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{23}" paraid="1399599748" role="heading">Dynamic leverage is a mechanism that adjusts a trader's leverage based on a specific criterion determined by a broker. For example, ThinkMarkets' dynamic leverage feature relies on a trader's trade size. <br /> </p> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{55}" paraid="1957324963">Unlike fixed leverage, where a trader's leverage ratio remains constant, dynamic leverage automatically changes. </p> <h2 aria-level="2" paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{61}" paraid="1459467418" role="heading">Mechanics of dynamic leverage: How it works </h2> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{71}" paraid="61956003">If you trade with ThinkMarkets on an account with dynamic leverage, your leverage automatically changes depending on the size of your trade orders. Leverage and trade size, in this situation, shares an inverse relationship. As your position size increases, the leverage applied to a portion of your trade decreases. <br /> </p> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{93}" paraid="579399769">The process is automatic and recalculated in real time to guarantee that your risk exposure is reduced as you undertake bigger positions. This is a particularly nifty feature for risk mitigation and helping you avoid significant losses during volatile times. </p> <h2 aria-level="2" paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{113}" paraid="533089364" role="heading">Dynamic leverage example: XAUUSD scenario </h2> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{119}" paraid="432313868">Let's look at an example to visualise properly how dynamic leverage works. </p> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{131}" paraid="1408111790">You decide to open a long position of 25 lots on XAUUSD, priced at 1,800. Below is the table of leverage tiers used by ThinkMarkets. </p> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{152}" paraid="899852099">According to the dynamic leverage tiers provided above: <br /> </p> <ul> <li paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{162}" paraid="367445120">For the first 10 lots, you get access to a leverage of 500:1 with a margin requirement of 0.2%. </li> <li paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{173}" paraid="1262078354">The following 10 lots fall under the tier with 200:1 leverage and a 0.5% margin requirement. </li> <li paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{180}" paraid="1527732668">The remaining 5 lots are at a leverage of 100:1 with a 1% margin requirement. </li> </ul> <h2 aria-level="2" paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{191}" paraid="1480331102" role="heading">Margin requirement calculation </h2> <table aria-rowcount="5" border="1" cellpadding="5" cellspacing="0" data-tablelook="1696" data-tablestyle="MsoTableGrid" style="width:550px;"> <thead style="background-color: #3e4a5a"> <tr aria-rowindex="1" role="row"> <td data-celllook="0" role="rowheader"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{197}" paraid="1477560330" style="text-align: center"><span style="color:#ffffff;"> Position size <br /> (lots)</span> </p> </td> <td data-celllook="0" role="columnheader"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{204}" paraid="1364141596" style="text-align: center"><span style="color:#ffffff;"> Leverage</span> </p> </td> <td data-celllook="0" role="columnheader"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{213}" paraid="91376119" style="text-align: center"><span style="color:#ffffff;">Margin requirement</span> </p> </td> <td data-celllook="0" role="columnheader"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{220}" paraid="246922951" style="text-align: center"><span style="color:#ffffff;">Margin calculation for XAUUSD at $1800 </span></p> </td> <td data-celllook="0" role="columnheader"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{231}" paraid="969306125" style="text-align: center"><span style="color:#ffffff;">Margin required </span></p> </td> </tr> </thead> <tbody> <tr aria-rowindex="2" role="row"> <td data-celllook="0" role="rowheader"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{243}" paraid="1594320989" style="text-align: center">10 </p> </td> <td data-celllook="0"> <p paraeid="{53584117-4d11-4bc6-a2de-46df2c0cc4e6}{250}" paraid="357531691" style="text-align: center">500:1 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{2}" paraid="153041093" style="text-align: center">0.2% </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{9}" paraid="1663063140" style="text-align: center">10 lots x 100 oz x 1800 </p> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{19}" paraid="166789265" style="text-align: center">500 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{26}" paraid="347818917" style="text-align: center">$3,600 </p> </td> </tr> <tr aria-rowindex="3" role="row"> <td data-celllook="0" role="rowheader"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{34}" paraid="658483082" style="text-align: center">10 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{41}" paraid="458902278" style="text-align: center">200:1 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{48}" paraid="389634407" style="text-align: center">0.5% </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{55}" paraid="1145375416" style="text-align: center">10 lots x 100 oz x 1800 </p> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{61}" paraid="583617992" style="text-align: center">200 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{68}" paraid="378543494" style="text-align: center">$9,000 </p> </td> </tr> <tr aria-rowindex="4" role="row"> <td data-celllook="0" role="rowheader"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{76}" paraid="1192086914" style="text-align: center">5 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{83}" paraid="498187169" style="text-align: center">100:1 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{90}" paraid="505165159" style="text-align: center">1% </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{97}" paraid="304540604" style="text-align: center">10 lots x 100 oz x 1800 </p> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{103}" paraid="1766904942" style="text-align: center">100 </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{110}" paraid="664003524" style="text-align: center">$9,000 </p> </td> </tr> <tr aria-rowindex="5" role="row"> <td data-celllook="0" role="rowheader"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{118}" paraid="2065218661" style="text-align: center">Total size </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{127}" paraid="1523390084" style="text-align: center">25 lots </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{134}" paraid="420359243" style="text-align: center"> </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{139}" paraid="1809839187" style="text-align: center"> </p> </td> <td data-celllook="0"> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{144}" paraid="581316709" style="text-align: center">$21,600.00 </p> </td> </tr> </tbody> </table> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{154}" paraid="1627421560"><br /> This means that for your 25-lot position on XAUUSD, the total margin required would be $21,600, given the price was 1,800. </p> <h2 aria-level="2" paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{168}" paraid="675519154" role="heading">Advantages of dynamic leverage: Why it's good for traders </h2> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{180}" paraid="858754147">While the notion of Dynamic leverage might sound intimidating, it offers several benefits that can elevate your trading: </p> <h3 aria-level="3" paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{196}" paraid="1962088252" role="heading">Risk management </h3> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{202}" paraid="1189862223">Dynamic leverage automatically adjusts to the size of your open positions, which helps manage risk more effectively. As you increase your position size, your leverage decreases, reducing the potential for significant losses relative to your account balance. This built-in risk control mechanism is especially valuable during times of increased market volatility, where price fluctuations can be more pronounced. </p> <h3 aria-level="3" paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{236}" paraid="952117703" role="heading">Flexibility </h3> <p paraeid="{45a7d192-07e9-41a6-8c56-d613f7c443b4}{242}" paraid="1314929708">The ability to open positions with higher leverage allows you to maximise your trading potential even with limited capital. Higher leverage means less capital is required to open a position, giving you the opportunity to make significant profits from relatively small price movements. ThinkMarkets offers leverage as high as 2000:1 with the Mini account on select markets. Please note that higher leverage can increase profits but also increases the risk of losses. </p> <h3 aria-level="3" paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{15}" paraid="1933726148" role="heading">Capital preservation </h3> <p paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{21}" paraid="1498073827">One of the primary goals of trading is to preserve your capital while generating returns. By scaling down leverage on larger trades, dynamic leverage prevents you from overexposing yourself to the market. This is crucial for long-term trading sustainability, as it helps ensure that you do not quickly deplete your trading capital, allowing you to continue trading even after a series of losses. </p> <h2 paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{21}" paraid="1498073827">How to integrate Dynamic leverage into your trading strategy </h2> <p paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{57}" paraid="2049712165">Get a feel of dynamic leverage by starting small. Our Mini account allows traders up to 2000:1 leverage with only a required minimum deposit of $10. Take advantage of this higher leverage for potential greater returns. <br /> </p> <p paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{81}" paraid="1108824244">Make sure you closely monitor your positions to understand how your leverage changes as you scale your trade size. We recommend using take-profit and stop-loss orders to secure profits and manage risk effectively. <br /> </p> <p paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{95}" paraid="434903734">As you adjust to having Dynamic leverage in your trading, familiarise yourself with the leverage tiers offered on your preferred market. Calculate your margin requirements correctly to avoid prematurely triggering a margin call. <br /> </p> <p paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{107}" paraid="341621967">To sum up, Dynamic leverage offers traders a significant advantage and the flexibility to pursue aggressive strategies in small positions while preserving capital and managing risk as exposure grows. However, it's crucial to understand and anticipate the risks associated with trading. <br /> </p> <p paraeid="{d5dc342c-a9cb-4381-a023-abdb11e42ca1}{129}" paraid="475202109">Trade with Dynamic leverage in a simulated trading environment risk-free by creating a Mini demo account. </p>
MT4 tips and tricks
<h2><strong style="color:#007c8c;">Customising charts</strong></h2> <p>You can fully customise your charts with indicators, grids and period separators and can add and remove these as you see fit. Here are some useful keyboard shortcuts for easy removals:<span style="font-size: 1.425rem; line-height: 1.6; font-family: EncodeSans, Helvetica, Arial, sans-serif; font-weight: normal;"> </span></p> <h5><span style="font-size: 1.425rem; line-height: 1.6; font-family: EncodeSans, Helvetica, Arial, sans-serif; font-weight: normal; margin-top: 0px;"><img alt="" src="~/getmedia/ad730baa-a9bd-415e-8ac7-4ae53466cfcf/MT4-Tips-and-Tricks-Custom-Charts_1.PNG" style="vertical-align: middle; margin-top: 0px; " /></span></h5> <p><br /> <strong><img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-hide-the-Bid.PNG?width=300&height=204" style="width: 300px; height: 204px; float: left; margin-top: 0px; margin-right:24px; margin-bottom:8px;" />Hiding the bid line</strong><br /> If you use a lot of technical analysis, the bid line can become rather obtrusive. To remove the bid line you can set the colour of the line to ‘None’, completely removing it from the chart.</p> <h5> </h5> <p><strong><img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-Setting-Default-Chart.PNG?width=300&height=489" style="width: 300px; height: 489px; float: left; margin-top: 0px; margin-right:24px;" /><strong>Setting the default chart</strong></strong><br /> Once you have a chart you’re happy with, you can save it as a template. The quickest and easiest way to do this is by right-clicking on the chart and selecting “Template”, followed by “Save Template”. You can have as many templates as you like to match all of your trading strategies.<br /> If you have a preferred template that you wish to save as your default, you can do this by right-clicking on the chart, selecting “Template”, “Save As” and then “Default”.</p> <h2><strong style="color:#007c8c;">Customising toolbars</strong></h2> <p>Many of the toolbar functionalities can be distracting and you may find you don’t use all of them. With MT4 you can add in or hide as many features as you want.<br /> <img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-Moving-Tool-Bar.PNG?width=300&height=168" style="width: 300px; height: 168px; float: right;" /> There are four separate toolbars available:</p> <ul> <li>Standard</li> <li>Chart studies</li> <li>Line studies</li> <li>Time frames</li> </ul> <p> </p> <p> </p> <p><br /> You can move toolbars around by simply dragging them to wherever you’d like them to be.<br /> <br /> To customise what you view, you can simply right-click on the toolbar and click on the customise sub-menu. Here you can remove functions that aren’t required by un-ticking them.<br /> <br /> <img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-hidden-Tool.PNG?width=300&height=141" style="width: 300px; height: 141px; float: right;" />By using the customise feature on each toolbar, you can access hidden tools, while removing any you don’t require. Through this technique, you can end up with a much cleaner and more compact user interface.</p> <br /> <p><strong>Using shortcuts</strong><br /> Keyboard shortcuts are a quick and easy way to perform tasks. By using shortcuts, you can have faster access to tools – saving plenty of time in the long run. You can remove redundant information and functionalities, and most importantly increase your charting space.<br /> The following keyboard shortcuts can help to navigate your way around the platform easier:<br /> </p> <table border="1" cellpadding="0" cellspacing="0"> <tbody> <tr> <td style="width:113px;"> <p><strong>Terminal</strong></p> </td> <td style="width:85px;"> <p>Control+T</p> </td> <td style="width:403px;"> <p>This is the main window you use while trading – manage open orders, view account history and set alerts</p> </td> </tr> <tr> <td style="width:113px;"> <p><strong>Navigator</strong></p> </td> <td style="width:85px;"> <p>Control+N</p> </td> <td style="width:403px;"> <p>Add Indicators, Expert Advisors and log in</p> </td> </tr> <tr> <td style="width:113px;"> <p><strong>Market Watch</strong></p> </td> <td style="width:85px;"> <p>Control+M</p> </td> <td style="width:403px;"> <p>View available instruments</p> </td> </tr> <tr> <td style="width:113px;"> <p><strong>Data Window</strong></p> </td> <td style="width:85px;"> <p>Control+D</p> </td> <td style="width:403px;"> <p>View all data for the product currently in the chart window</p> </td> </tr> </tbody> </table> <p><br /> You can use the following shortcuts when analysing and trading, which can greatly improve the process speed of your trading:<br /> </p> <table border="1" cellpadding="0" cellspacing="0"> <tbody> <tr> <td style="width:75px;height:17px;"> <p><strong>+</strong></p> </td> <td style="width:192px;height:17px;"> <p>Zoom in</p> </td> </tr> <tr> <td style="width:75px;height:18px;"> <p><strong>-</strong></p> </td> <td style="width:192px;height:18px;"> <p>Zoom out</p> </td> </tr> <tr> <td style="width:75px;height:17px;"> <p>Control+F</p> </td> <td style="width:192px;height:17px;"> <p>Crosshair</p> </td> </tr> <tr> <td style="width:75px;height:18px;"> <p>Control+Drag</p> </td> <td style="width:192px;height:18px;"> <p>Copy objects</p> </td> </tr> <tr> <td style="width:75px;height:17px;"> <p>Alt+Drag</p> </td> <td style="width:192px;height:17px;"> <p>Extend objects</p> </td> </tr> <tr> <td style="width:75px;height:18px;"> <p>Alt+T</p> </td> <td style="width:192px;height:18px;"> <p>One-click trading</p> </td> </tr> <tr> <td style="width:75px;height:17px;"> <p>Hotkeys</p> </td> <td style="width:192px;height:17px;"> <p>User-defined shortcuts</p> </td> </tr> </tbody> </table> <p> <br /> These are the shortcuts for the more visual aspects of your charts:</p> <table border="1" cellpadding="0" cellspacing="0"> <tbody> <tr> <td style="width:75px;height:17px;"> <p>F8</p> </td> <td style="width:192px;height:17px;"> <p>Edit chart graphics</p> </td> </tr> <tr> <td style="width:75px;height:18px;"> <p>F9</p> </td> <td style="width:192px;height:18px;"> <p>Order panel</p> </td> </tr> <tr> <td style="width:75px;height:17px;"> <p>F11</p> </td> <td style="width:192px;height:17px;"> <p>Full screen chart</p> </td> </tr> <tr> <td style="width:75px;height:18px;"> <p>Alt+1</p> </td> <td style="width:192px;height:18px;"> <p>Bar charts</p> </td> </tr> <tr> <td style="width:75px;height:17px;"> <p>Alt+2</p> </td> <td style="width:192px;height:17px;"> <p>Candlestick charts</p> </td> </tr> <tr> <td style="width:75px;height:18px;"> <p>Alt+3</p> </td> <td style="width:192px;height:18px;"> <p>Line charts</p> </td> </tr> </tbody> </table> <p> <br /> <strong>Using hotkeys</strong><br /> <img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-Hot-Key.PNG?width=300&height=334" style="width: 300px; height: 334px; float: left;" /><br /> <br /> <br /> </p> <p><br /> In MT4, when you switch your chart templates, you’ll lose any current analysis on your charts. To prevent this, you can leave your price charts open and just change the indicators that you use – this is where hotkeys come into play. You can assign a hotkey to place a certain indicator on your charts, instead of needing to change the template.</p> <p>To assign a hotkey to an indicator, simply right-click on the indicator on the navigator window and select “Hotkey”.<br /> <br /> <br /> <img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-Favorite-Chart.PNG?width=300&height=182" style="width: 300px; height: 182px; float: right;" /><br /> <br /> <strong>Favourites indicators list</strong><br /> To streamline the number of indicators that are available to you, you can create a favourites list. Here’s how you can add indicators to your favourites list:</p> <ol> <li> <p>Open Navigator (Control+N)</p> </li> <li> <p>Open relevant tab (Indicators, Scripts etc)</p> </li> <li> <p>Hover mouse over desired favourite</p> </li> <li> <p>Right-click on your mouse</p> </li> <li> <p>Select ‘Add to favourites’</p> </li> </ol> <br /> <img alt="" src="/TMXWebsite/media/TMXWebsite/MT4-Tips-and-Tricks-Alert.PNG?width=300&height=365" style="width: 300px; height: 365px; float: right;" /> <strong>Alerts</strong> <p>Alerts allow you to keep track of important price levels being breached, and can further enhance your analysis and chart organisation. If you track multiple markets, it can become easy to lose track of the markets, especially after an important event and all the markets move their separate ways.<br /> To set up alerts, move your mouse to the area on the chart you’d like to set the alert at, right-click on the position, select ‘Trading’ and then ‘Alert’.</p>
What is technical analysis in trading?
<p>The most important part of any trading strategy is knowing when to enter and exit the market. In our previous trading guides and articles, we covered various factors influencing price movements in financial markets, such as economic indicators and political climate.<br /> <br /> Analysing such factors is called fundamental analysis, and it is a very popular method to evaluate future price movements among traders.<br /> <br /> However, some traders consider insights found with the help of fundamental analysis insufficient to provide exact buy and sell levels. That’s where technical analysis can be useful.</p> <p>In this article, we’ll explain what technical analysis is, how it works, and its main types.</p> <h2>What is technical analysis?</h2> <p>Technical analysis is the process of evaluating past price movements of an instrument to determine its future moves. The reason it’s called technical is because it’s based purely on statistics and is not affected by news, economic or political factors.<br /> <br /> While this method is widely used by traders all over the globe, it’s important to understand that past prices don’t predict or dictate future prices, and all the insights gathered with the help of technical analysis are solely indicative.<br /> <br /> Technical analysis includes multiple tools. An experienced technical analyst usually uses various combinations of them to compare results and make an informed trading decision. These tools can be divided into three categories: trend lines, chart patterns and technical indicators.<br /> <br /> All three analyse price charts. So whichever type you choose, the single most important thing is to learn how to read price charts.</p> <h2>What is a price chart?</h2> <p>A price chart in trading is a graphic sequence of historical prices of an instrument. Charts are at the heart of trading as they help traders to monitor the value of their current positions, analyse past price movements and get cues as to where the price may move next. Understanding how to read a price chart is a key step in learning technical analysis.<br /> <br /> Each trading platform offers a different set of various chart types, and the choice depends purely on a trader’s personal preference. ThinkMarkets’ proprietary platform ThinkTrader, for example, has over 15 different charts to accommodate traders’ needs.<br /> <br /> <img alt="" src="/getmedia/6aae82dc-4ad4-43ba-9b7b-fdbf2373e549/article-what-is-technical-analysis-price-chart-1.webp" style="width: 552px; height: 464px;" /><br /> <br /> Some popular ones are candlestick, bar and line charts:<br /> <br /> <img alt="" src="/getmedia/ffc042b3-bc5a-4a9e-81e8-da5cb1ba5b5c/article-what-is-technical-analysis-chart-types.webp" style="width: 552px; height: 258px;" /><br /> <br /> As a candlestick chart is the most commonly used by traders, let’s see how it works in detail.</p> <h2>Candlestick chart</h2> <p>A candlestick chart is called so because each unit of it looks like a candle. The time frame of candles can be adjusted from one minute to one month, depending on the strategy:<br /> <br /> <img alt="" src="/getmedia/0f95f823-f6c9-42e1-a8f7-dcfb6ace79e7/article-what-is-technical-analysis-candlestick-chart.webp" style="width: 552px; height: 431px;" /><br /> <br /> Regardless of the chosen time frame, each candle consists of two main elements: the wick and the body that represent four prices of an instrument:</p> <ul> <li>Opening price</li> <li>Highest price reached during the chosen period</li> <li>Lowest price reached during the chosen period</li> <li>Closing price</li> </ul> <p><br /> The candles are coloured depending on whether the market rose or fell during the selected timeframe. Green candles (white on some platforms) indicate rising or bullish prices, and red (black) represent falling prices, also called bearish.<br /> <br /> <img alt="" src="/getmedia/38272a03-b39f-4a17-85b3-e0377aacfc0a/article-what-is-technical-analysis-candlestick-wicks.webp" style="width: 552px; height: 327px;" /><br /> <br /> In technical analysis, it is exactly the relationship between individual candlesticks that helps traders predict a future price movement.</p> <h2>Types of technical analysis</h2> <p>As we mentioned above, technical analysis tools can be segregated into three categories: trend lines, chart patterns and technical indicators.</p> <h5>Trend lines</h5> <p>Prices never move in straight lines. Influenced by many factors, they move up and down, forming highs and lows. A trend means the overall direction of the price movements. Trend lines are just straight lines that traders use to connect highs and lows on a price chart to identify a trend. Some trend lines, such as support and resistance, are used to identify an entry and exit level before opening a position.<br /> <br /> In one of our following articles, we’ll explain how trend analysis works and how to identify a trend in detail.</p> <h5>Chart patterns</h5> <p>A chart pattern is a graphic sequence of lines that can be identified on a price chart. Chart patterns are very popular among traders as they can often signal the beginning, end, strengthening or weakening of a trend.<br /> <br /> We’ll go through the most popular patterns in one of our next articles as well and explain how they work.</p> <h5>Technical indicators</h5> <p>Technical analysis indicators are mathematical calculations based on historical data and used to identify price action. As complex as it sounds, traders don’t need to do the actual math. Every trading platform offers technical indicators that can be simply applied to a price chart. The main goal for a trader is to learn how to read them.<br /> <br /> Depending on their types, technical indicators can analyse trend direction and strength and identify potential entry and exit points. We will cover this topic in detail in our following articles too.<br /> <br /> For now, to start getting familiar with technical analysis, we suggest creating a <a href="~/en/demo-account">risk-free demo account</a> on ThinkTrader and studying various price charts. You will be able to use the same platform to continue your journey with technical analysis, as it offers an extensive suite of analytical tools.<br /> </p>
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