Forex Trading – Why It’s Time to Consider Trading volatility
Forex trading looks easy yet few succeed and the reason is they don’t pay enough attention to the one key factor that should be considered in determining whether or not a currency will continue to go in the same direction it is today.
You follow a trend (or lose on average 95%) and this means you have to protect what you have and gain the rewards. หนังคมชัด It doesn’t matter if you have bought one currency, had a long term position or a short term position.
If you want to run losing trends and make a profit you need to protect what you have.
Who thus decide on currency prices and where they tend to show up its the crowd and no one can predict their final move correctly and the reason for this is volatility and you need to learn to deal with it.
Volatility is caused by Dream Stops
Stops in Forex markets never work WA depositing them at market highs and they never work. เย็ดคาชุด
Volatility is caused by traders who think these stop would back price from the crowd and go the opposite way.
Short term price spikes never last and so do long term price spikes – period.
All trends start and continue from new market highs and the trend is strong preference at deeper time frames and the trader who thinks this shouldn’t be real trade simply doesn’t have the trend in his mind.
suffer losses go against them and you need to like any other market and this means the reality is that volatility in currencies never gives the whip spender or the scalper profit.
It’s a fact that all volatility in Forex markets is random, this means stops just don’t work.
The myth of traders being subject to random volatility and you cannot trade it is a myth.
To stop yourself getting involvement in open equity drawdown you have a set risk reward of your own money. หนังพากย์ไทย Forget Forex scalping and scalper systems and this means there is no short cut but to trade the odds in any form you need to learn to trade into higher time frames.
To win you must learn how to work the odds and trade the odds and this is done by trading the longer term trends.
Many traders try to restrict risk so much – they try to restrict risk so much that there is no point going and in the end their great losses.
This is what happened in the 1980s.
It is easy to get market direction, สาวเกาหลี support and resistance and trend lines and it’s the one tool most traders need to make money and to do it requires a simple system.
If you look at one of the great top traders like Richard Dennis, he focused more on hitting market entry points and this is a core part of the way he made millions and you can too.
“We must not allow ourselves to be emotional” says Richard, “We got off on the right foot with the trade but you have to know when it’s time to get off.” If you trade long term trends you can time your entry with far better risk reward, than the other ways of trading – but this doesn’t mean you have to make huge risks.
Volatility in motion means the trend is longer, if prices approached their trend from a bullish extreme they have a lot more pullback potential and this means the risk reward when you enter the market will be significantly better.
Most traders are so obsessed with restricting risk they actually create it, when they open a position they have no stop behind them and have no hope of a meaningful profit.
There is a school of thought that says you keep risk low when you get credit and high when you are speculating and can you see how many cheap get rich quick systems vendors have around?
Of course they don’t work and think about it. คลิปบ้านๆ
If you accept short term price volatility in terms of profit potential you have a simple equation for market movement.
Fund managers have great theories like “it doesn’t matter most financial markets move from a random observation of past prices” or “the fundamental elephant in the room means it can’t possibly go wrong” but it does and most traders don’t understand it.
Volatility, is accepted by the marketplace and causes there actions to yield small short term profits, due to it’s volatility and traders in response believe markets can be predicted and of course they can’t but if it could be, we would all know the price ahead of time!
Keep in mind the only way to trade with price momentum is to buy or sell breakouts which is obvious but most traders refuse to do it, so they hope or guess and lose.
An essential lesson of all currencies theories is that you are playing against the market and you can’t. If you think about it, if you can tell where the major market tops or bottoms are, you would know there areas of support and resistance and you could trade them.