The introduction of synthetic indices by Deriv which can be traded 24/7 is changing the lives of many traders; with a good spread, even with equity as low as $10, anyone with a good knowledge of price action can make sustainable income from the Forex Market. This article will guide traders on how to trade Boom 300 and Crash 300 successfully.
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How to Trade Boom 300 and Crash 300 Successfully
I started trading about 11 years ago, then the minimum equity needed by almost every broker I researched on was $100, I was able to raise $250, but I lost the money after some few careless move. The lost ignited my interest in the Forex Market and I started searching for the holy grail to assist me in my trading journey. Lucky for me I stumbled on Babypips, and after about 2 weeks of intensive study, I realized that price action was the first thing any trader should understand before thinking of making a sustainable income from the forex market.
If you are a trader and you can’t read the naked chart; you can’t understand terms like higher high, lower low, trend line, market structure, etc., then you are not ready to make sustainable income from Forex. Take this from me, if you are struggling in the Forex Market, stop looking for strategies or signal groups they won’t help you, seek for knowledge. They are many free resources out there, you can start from the basics like me from babypips, then look for a mentor to guide you after that.
I came across Deriv about 2 years into my trading journey and their equity requirement of even less than $10 was very tempting; so I open a real money account and focus on trading EURUSD, USDJPY, GBPUSD, and USDCHF only; but the introduction of the synthetic indices few years later changed my trading history for life.
If you are a forex trader and you are not trading Boom 500, Boom 1000, Crash 500, Crash 1000, Step Index, V75 and other synthetic indices I wonder what you are waiting for. I will tell you a little secret that has helped me in the Boom and Crash market and I am very certain, if you adhere to what I am going to share with you, you will minimize your loses and Maximize your gains.
If you are looking for how to trade Boom 300 and Crash 300 successfully, then let me start by saying this: There is no holy grail, you need to do yourself a favor and stop spending your money and time looking for spike detector, signal group, EA, etc., all those stuff won’t help you. I was a victim of many YouTube Forex Billionaire who claimed to be making millions monthly but will charge as high as $500 for a Forex Course which was not different from the free materials available on the internet.
After many trials and errors with many YouTube Forex billionaires, I started searching for Signal groups, EAs and Special indicators, I wasted over $1000 and at the end there was no good return on the investment, what helped me is what I am going to share with you. Please even if you are a newbies in the forex market just take your time and digest what I am about to tell you.
You need just three things to be successful in the Forex Market;
- Understand Price Action and Develop a Strategy
- Have confidence and work on your psychology (Your Trading Psychology is very important)
- Understand Money management and Risk management
Understanding Price Action
Price action deals with the movement of price in the market. Price action tools like Market structure, trendlines, chart pattern, swing high and low, Supply and demand, etc., guides price action traders in making informed decision in the market. The first and number one thing you should understand if you want to know how to trade Boom 300 and Crash 300 successfully is to understand price action.
To understand price action, you need to understand what move price in the market, price don’t just move, they move because of market order and this market orders happens because of the power of supply and demand. Standard indicators for instance will only show you historical development not future price movements, because indicators work with time and historical price. But Price action will give you an insight of the market structure which will guide your decision on the trend directions.
Map out your Key levels every day
It is important to map out some key levels on your chart every trading day. Don’t just jump into the market because it is buying or selling. Mapping out some key levels on your chart like Yesterdays’ high and Yesterday’s low, Consolidation zone and place of strong price rejection either higher or lower can maximize your chance of winning trades.
I normally use Supply and Demand zones to draw my point of interest and once price action gets to those point, I will enter with 10-20pip stop loss incase of market structure violation and just monitor the price movement to take profit once I am satisfied. This strategy works 90% of the time.
Have confidence and work on your psychology
Most people close trades in red because fear of the unknown; and also take profit too early because of lack of confidence in themselves. Once I open a trade, I will calculate my risk to reward ration and put stop loss and take profit levels, then allow the trade to run . I can only shift the stop loss to secure my profit and close when am satisfied. I don’t close my trade in red except it hit stop loss.
Work on your confidence, improve your trading psychology and you will enjoy the market. If you have any questions, kindly share on the comment section.
Risk Management is Very Important
Some people win can 2 trades in a row, then just one loss will wipe out the whole profit. This is due to poor risk management. Before placing any trade, it is important to calculate your risk to reward ratio. If your profit for instance is 40pips, your stop loss should be between 10 to 20 pips depending on your key levels on the chart.
So that even if you win just one and lose two, you will still have some profit. Secondly, It is important not to overleverage either with big lot, or entering plenty positions if you are not 100% certain of a trade. To me, you just need one good entry in a day to make good profit. And there is no way you won’t be able to spot that entry point if you mark your key levels on the chart, draw trendlines , then stay on your chart for price to get to your key levels, so that you can monitor price action reactions at that point and decide if to enter or wait for it to get to the next key level.