Boom and Crash trading sounds appealing to take advantage of bullish and bearish trends. Is it applicable for beginners? How to trade it safely to gain profit?

Most new traders are in a hurry to make quick profits without adequate learning and practice. Some of them don't feel like it's wasting money to subscribe to signal groups or buy Expert Advisors (EAs). Reckless actions like this will generally end in losses. If you are a trader who wants to make a sustainable income while gaining more knowledge, then Boom and Crash trading can be a good alternative.

Boom and Crash trading

Boom and Crash are synthetic trading indices. Boom consists of Boom 500 and Boom 1000, while Crash is made of Crash 500 and Crash 1000. These are only available to trade on Deriv. These trading indices have some unique features that make them distinct from their kind. Whenever you open the Boom 500 or Boom 1000 chart, you will notice that it is showing sell characteristics by default.

Similarly, if you open the Crash 500 or Crash 1000 chart, you will notice that they are showing buy characteristics by default. However, if the Boom market decides to buy instead, it does so following a long bullish trend. If the Crash market decides to sell instead, it does so following a long bearish trend.

 

Best Boom and Crash Trading Strategy

Different markets follow different trading strategies. It is important to know which strategy works best for which asset in order to be able to earn maximum profits with minimal risks. For boom and crash trading, most traders prefer to use scalping as a trading strategy. This is due to the market structure where it follows long bullish and bearish trends.

Low-risk management is exactly what's needed with this type of market. Traders who use scalping on the Boom and Crash market usually use either the M1 or M15 time frames as they're more focused on the current market trend instead of the long-term trends.

 

How to Trade Boom and Crash Successfully

After trading the Boom and Crash indices for quite some time, here are some trading tips I learned along the way that would be really helpful to someone still learning their way around these markets:

 

1. Watch the Price Action

One of the most important things in order to be successful in Boom and Crash trading is understanding price patterns. Analyzing the candlestick movements as well as support and resistance levels is where you will be able to identify bullish and bearish patterns. This will help you determine the best positions to get maximum profits.

 

2. Set the Risk Management

It is important to not become greedy when trading in the Boom and Crash market. Only open positions if you are absolutely certain you are going to be able to close them in a profit. You should also place stop losses on your positions in order to prevent the trades from resulting in a margin call which would make you lose all the capital in your account. Remember, closing your position in a small loss is way better than losing your whole account to greediness.

 

3. Try a Demo Account

Before you invest real money into the Boom and Crash market, it is important to first try it out in a demo account. This way you can test out different trading strategies to figure out which works best for you. We recommend using a demo account for at least a month with a strategy that is giving you good profit before opening a real account.

Synthetic index trading can be easy and difficult depending on your trading skills. If you want to make constant profits through Boom and Crash trading, you should learn and practice a lot before jumping into the real market.