ETFs trading has gained huge popularity among professional traders in Singapore. Investors are using market volatility and taking advantage of different kinds of ETFs market.
But taking trades in the ETFs is not an easy task.
There are few important things which you must consider else it will be a nightmare.
We all know that successful traders in the Forex trading community make up less than 4%. But in reality, they should not be called “Forex traders” rather we should call them the “Traders”. This means the ETFs traders are included in this statement.
To become good at ETFs trading, we have to follow some strict rules.
Let’s find out about the top 5 rules you should follow to day trade ETFs.
Organize your analytical approach
Organizing your analytical approach is the most critical part of the trading business. Taking your trade without having a fixed set of goals and breaking the rules is a very big mistake.
You have to curate the trading strategy based on the type of ETFs you are trading. Currency ETFs can be traded with the simple Forex trading strategy but if you use the commodity and stock ETFs, you have to use a special kind of strategy.
So, create your trading method based on the type of instrument which you are trading. Stop chasing the wild trend and try to take organized steps.
Select a few assets
Analyzing too many assets makes things hard. Though the Saxo bank group offers a wide range of instruments for ETFs traders to use, they should narrow down the list.
By narrowing down the list in trading, it is possible to improve your efficiency and boost the profit. Though it’s a very complicated task at the initial stage, you can do some by using a demo account.
But don’t take things to the real account unless you have the skills to demo trade the market properly.
Demo trading is the best place where you can learn to day trade without risking any real money. Analyzing too many assets creates massive confusion and it becomes hard to track the news.
Without tracking the news, no one can find the perfect balance in the day trading system. So, be selective with your trading asset to ensure the safety of your capital.
Tame the fear and greed
You must control your emotions to become a top trader. The amateurs are always listening to their emotions and losing most of the trades. The institutional traders always suggest, to write down the rules. By keeping written rules for your trading method, you are going to keep things organized.
If you develop the habit of following the rules all the time, you won’t be breaking the rules with green and fear. A few losing trades are not the end of your career.
Similarly, a big winner is not going to ensure your financial stability. You have to find consistency in trading. It will be only possible when the trades are executed by the following logic.
Never trade the market with emotion as you will lose lots of money.
Trade with the best broker
At the bottom line, we must say, you can’t trade the ETFs with the low class or the unregulated broker.
Top brokers like Saxo is spending millions of dollars just to ensure a high standard ETF trading environment is available. They have protection for client funds.
On the other hand, cheap brokers are trying to scam traders.
You might perform well by trading the currency market with the average class broker but things are different for ETFs trading. It is the place where the professional traders participate.
If you want to act like the professionals, you have to stick to the rules so find a good broker before you take trades in the market.