You know when not to trade in the market Forex traders all the Forex for profit and loss when you get frustrated. Naturally, everyone wants to earn more, and quickly, but usually this is not the same result. Today I would like to understand what is behind the failure of the merchant.
When a trader opens a proposal. Rashly, he had the opportunity will be lost. Or maybe you will recognize themselves in this situation: you come home tired and sit down at the computer to trade. But trading did not bring the results need. I have been trading for 3 years and of course. I face this at the beginning of my career in trading. There are also day Forex market disadvantage on when it would be better. Wait and try trading Forex trade inspections
The reason why traders fail is divided into the psychological. And the marketing people.
Psychological reasons not to trade.
New majority is believed to be caused by the failure of their trading strategies. But, in fact, Mental health status of entrepreneurs also have an impact on the trading performance.
Not when the emotions that lead to trading activities.
Emotions can pull the entrepreneurial way. Traders will often give vent to their emotions during the pursuit of profit has no control. And just ignore the money management rules. After a trade, the profit or the desire to win back after removing the people causing destruction to trading.
Not when you're tired.
When you feel overwrought or perplexed by some important issues succumbing trading must have high concentrations. Fatigue leads to loss of interest And this means that operator fatigue is more likely to do wrong. Example Click the button "replace" purchasing ".
Don't get distracted when trading.
Unfortunately we are all suffering from interference. It may be an incoming message to a friend's annoying Barking Dog House or new episodes of your favorite serial numbers on tv. Interference effects of our work very seriously. I think you can understand it. Sure, delete.
When trading, you should be concentrated and not distracted. Eliminate possible interference when making your order: put together a tv, a radio, telephone and other equipment off the notes from social networks using disturbance of our close trading – what should we focus on so before you start trading deal with distractions, all of your potential.
The reason the trade market.
Have the dates and events when you don't have to buy/sell? Otherwise, you can lose a lot of money of your own. It is called market reasons.
News is the level of power of the changes occurring in the market either. Forex is affected by many factors. Reports, speeches of the Chief of the Central Bank and other. Many important public figures The confidence index published protocol statistics in business activities, etc.
Nobody can predict whether the market will react to this news, and it moved after release. The price was unexpected, you can also get whipsawed trading right after this news.
Any sharp Whipsaw price moves mean the fall of the rapid growth rate rapidly according to the movement in the opposite direction. Traders are under high risk in the period.
Merchant news, schedule, check on the economic calendar. Which are collected all the events. The economic calendar shows events in the time of the release, and the level of currency effects – high, medium, and low. I follow the economic calendar from Investing.com to realize all activities that drive the market. Really easy to use and customize.
Any important event will be accompanied by an increase in volatility that often come before the formation of a strong trend. There should be no trade, 30 minutes before the release of important news and wait 30 minutes after that reduce fluctuations and the formation of a stable direction after release.
If you want to enter a position before releasing the news. And then recommended a significant reduction of risk in normal handling. If the price goes in your direction. You can always add to your position.
Forex market holidays.
Starting a majority do not want to miss the opportunity to earn extra money. And on weekends, but such trading is risky. The risk of trading in a market holiday. What is the forex risk is low liquidity market participants to hedge the Bank is out of the game in the holiday Management Center stopped temporarily activities. And customer service with a small interest in selling/buying a currency pair.
In addition, the price can move unpredictably because liquidity is low. It may rise or fall in a minute, so there is no time for a trade in the response.
The market usually continues to work on holidays, because not all holidays are universal. It depends on the region are celebrating the holidays. For example, in the Queen's birthday, Australia with the rest, but other countries continued to work with trading currency pairs AUD including may not very active, and have low liquidity, which can lead to sharp and can't predict movements in the market. It's better than other instruments, such as trading, EUR/USD, etc.
Of course Traders can profit in the holiday, but it is so important, and the risk of loss is not worth. I prefer to stay out of the market during the holidays rather than stare at charts. In addition, the holidays are a good chance to relax. And more time with family.
Novice traders complained that the markets are unpredictable Friday. They cannot determine the direction of price movement. And received the loss, so not recommended trade Friday, come and see why.
Friday is the day before this weekend? Most of the market players are getting ready for the holidays. And locked profits off trading opened, it often leads to a reversal of the price. A change in the current trend. Therefore, there is always an increase in activity in the market this Friday.
Very important is also the economic news is published Friday. Where to get angry and volatile price movements, strength.
It all depends on your trading strategies and what period of time the traders work. If your method is a strategy during the day, then it is better not to nominated members. Lot of activities can occur during the weekend. That affects the sharp jump in prices.
Therefore, for trading Monday, sometimes open. With the large gap – the difference of the closing price on Friday, and the opening price Monday. The opening price can dramatically go down or go up after the weekend. And it is clearly visible on the chart. Below is an example:
We'll see if the price closed on Friday and Monday opening price estimate 1.0726 1.0915 thats 180 points or more higher than the closing price on Friday.
Forex is open 24 hours a day throughout and we feel that we will be able to buy and sell in the time that we need. But it's not always easy to make a profitable trading. You should remember that there are times when it is better not to just sit on your hands, low liquidity in the market, forex market news release holiday weekend–trading an s. The trade balance will be displayed. And cut into profit.