People love the concepts of CFD trading. They know the market offers a high leverage account and they can easily earn a decent amount of money without risking too much. Things might seem very easy at the initial but once you open the trading account, you start feeling the heat in the investment business. Thousands of traders have tried to master the art of trading by following the conservative trading technique. Due to their lack of skills and knowledge, they failed miserably. In this article, we will teach you the perfect way to create a short term trading strategy so that you can easily earn a decent amount of money without risking too much.

The risk associated with short term trading method

Before you move into the short term trading technique, you have to know the risk associated with the short term trading technique. Thousands of traders have tried to master the art of trading but all of them have failed miserably. As the novice traders don’t know the high risk involved in the short term trading method, they always become aggressive after losing the trade. To become successful, you must learn to take the trades with a strategic approach. Never try to become a skilled trader without doing the hard world. Prepare your mind to accept the losses before you think to become a fulltime trader.

Open a demo account

To create the short term trading method, you have to open a demo account. The demo accounts act like blessings for the novice traders. People who have strong analytical knowledge do relatively well in the investment business since they know the perfect way of trading. They take risks in a conservative way so that they can earn a decent amount of money. Visit this page to open a demo account with the high-end broker Saxo and start learning the basic skills. It won’t take much time to learn the basics skills provided that you follow the standard rules of trading. So, bear with us if you truly want to become a skilled trader.

Learn about the support and resistance level

You must learn about the support and resistance level to become a top trader. Without learning about support and resistance, it becomes very hard to overcome the losses. People who are good at analyzing the key metrics of the market are earning more money since they know the perfect way of trading. They take trades in a disciplined way and it allows them to earn a significant profit. Before you move on the trading technique, learn to find the key trading zone at the important levels. Once you trade the market with the help of major support and resistance, you will be able to earn more money.

Scale the lot size

To protect the capital, you must scale the lot size according to your skill. Thousands of traders are losing money since they follow aggressive methods. By following the aggressive method, no one can become a successful trader. For the safety of the trading capital, you should come up with a unique method that will allow you to take the trades in the most efficient way. Things might seem hard at the initial stage but once you learn to take the trades in a disciplined way, you will learn the importance of money management. Try to trade with less than 2% risk since it is the best way to protect the capital. Once you become good at taking trades with the low risk you can trade the lower time frame.

Stop trading the news

You must stop trading the news since it is one of the common cause to lose money in the CFD market. As you will be taking the trades in the CFD market, you must be careful about the trade execution process. Follow the safety protocol and it will help to improve your short term trading strategy.