Boom and Crash trading is what most of us are aware of, but unfortunately, not many people truly understands it. I have been trading Forex for over 10 years; and Boom and Crash for the past one year and I have interacted with different breed of traders. One of the things that strike me about traders, especially newbies is their hunger for quick cash not knowledge. Many newbies are just looking for how to make quick money, they don’t mind wasting money testing different strategies and Signal groups in order to achieve their dreams.
Most often, this kind of quest always ends in disappointment, because making sustainable income from Forex needs dedication, skills, passion, patience, risk management capacity, etc. Before, we continue, I just need to make one thing clear, if you are looking for quick money, please this is not the article for you, but if you are looking for how to gain more knowledge and make sustainable income from Forex, then read on.
So what is Boom and Crash?
Boom and Crash are indices that are only available on the Deriv.com platform. They include Boom 500, Boom 1000, Crash 500 and Crash 1000. The Boom indices (Boom 500 and Boom 1000) has like a default sell circle; which means anytime you open Boom 500 or Boom 1000 chart, no matter the trend, the default characteristics of Boom is sell. Whereas the Crash Indices is always on the buy circle but sell at interval depending on so many market forces which we will discuss in this articles.
So How do we trade this indices.
Trading the synthetic indices is both hard and easy; hard if you don’t have the skill and right knowledge; easy if you have the mixture of the two. So if you want to make sustainable income from these indices, you need to get the right knowledge first. Please note: You don’t need to pay any self acclaimed Forex guru to get the knowledge, there are many free guide online. I started my journey in Forex by reading all the materials on Babypips.com, then demo trading to define my strategy.
Trading these indices is the same thing as trading currency pairs; buy at support and sell at resistance. There is a detailed article on how to trade the Boom and Crash indices, if you haven’t read it yet, kindly click here.
Market forces to look out for in synthetic indices
Unlike currency pairs which can easily be affected by fundamental analysis, synthetic indices trading mostly depend on Price action, Market structure, Supply and Demand, etc. If I am buying boom for instance based on the market structure, the only time I can exit the market in loss is if there is a market structure violation which is mostly caused by Supply and Demand.
These Four things I am going to mention are very vital to your trading journey.
- Price Action
- Market Structure
- Risk Management
- Patience and Psychology
Why Trade synthetic indices
Synthetic indices are very easy to learn and understand. They are newbies friendly, I have few newbies who love scalping crash and Boom and they have mastered the skill so well that their risk to reward ratio is very good.
If you don’t have a synthetic account, click here to create one.