As a trader, you have always been taught on making money from trading using different candle stick charts. right! Well, it’s every trader’s ambition to make money in the stock market. As the experts say trading is an art and a trader is an artist. If one has to make a profit then the other side will lose. The main masala in the stock market to make a dish is a candle stick pattern. Those who master it will definitely make money very often.
In this blog, we are gonna look at how to make money by trading with candlestick charts.
How to make money by trading using candle stick patterns
Making money by trading using a candle stick pattern is an easy and effortless way in the stock market. A lot of people will do mistakes by directly entering into a trade without knowing the basis of the candle stick pattern. If you are also one of them please refer to our candle stick pattern article.
But choosing the right strategy at a suitable time is very vital to succeed in the stock market.
Here are the 9 ways to make money by trading using candle stick patterns
- Identify Candlestick Patterns – Identifying the candle stick patterns at the right time and also at the right momentum is very key to making money. See friends the candle stick patterns will change so fatal that you have to come up with numerous candle stick patterns. You need to follow the trend of the pattern and act accordingly. Strategies like short selling or swing treading can help you in this short time frame trading.
- Backtest Your Strategy – Backtesting your strategy is a very key aspect when you are analyzing the effectiveness of a trading strategy using historical market data. Checking and reevaluating your accomplishments and mistakes can have a huge impact on your profitability
- Analyze the Results – Analyze what you have done so far on your trading like PandL.
- Interpret the Results – Try to understand the results that you have got and reevaluate the results.
- Choose a Trading Platform – Choose a platform that has a better scanner for analyzing the stock’s returns as well as which is suitable for you to read candle stick patterns easily. Some apps have advanced trading charts where you will get a lot of tools to implement your strategies. One such app is Exness. With Exness you will get numerous advanced tools for trading in the market.
- Continuous Learning and Adaptation – No other thing can help you other than learning and implementing what you have learned. There are a number of candle stick patterns suitable for different time frames. As a trader, it’s your core responsibility to educate yourself and execute trading.
- Be Patient and Disciplined – Discipline along with patience has a huge impact on your trading lifestyle. A disciplined trader always follows his own mindset which he intends to continue forever even if he makes any loss or is demotivated.
- Focus on High-Probability Setups – Create a candle stick pattern that can easily be set up while you perform a trade.
- Use a high-resolution screen – The resolution of the screen matters a lot to execute a perfect trade. Candlesticks are very volatile and can give a breakout within seconds. As a trader, if you use a high-resolution screen, you can highly benefit from capturing the movement.
At least use 2 two screens side by side. Use one screen for executing orders and one for observing the candle stick patterns.
- Follow market leaders – Follow the social media accounts of established traders who give some insights regularly on a trading basis. There are numerous experts on social media and you can take their guidance to become an expert in trading. Also, follow websites that teach the required skills on a trading basis.
- Update yourself – Updating yourself in the sense you need to keep track of all the happenings in the market. Reading newspapers or following the stock market news can help you to advance the mood of the market.
On the wrapping note let’s look at what we have discussed so far. Making money by trading using candle stick patterns is a phenomenal way to build your wealth in a short period of time. But it has its own disadvantages when you do not focus on minimizing the risk and are unable to choose a strategy. The above 10 points will give you insight into increasing your chances to create wealth in trading.