Forex Trading - Avoid the One Mistake Which Causes Forex Capital to Get Eroded in No Time
There is one mistake which is made by most novice traders and often results in their forex capital being completely eroded.
If you are new to forex trading, understanding the mistake in detail and avoiding it will go a long way in defining your success in the forex market.
When you are new to an industry you easily believe what others have to say.
These days internet also provides a host of information not all of which can be relied upon.
One such belief which you will frequently come across is that is necessary to predict currency price direction before entering into a forex transaction.
What is prediction? It is nothing but taking a guess at how the market may move.
Forex market is the largest financial market in the world.
It takes only minutes if not seconds for currency price changes to happen.
In such circumstances there is no way to predict market movements accurately.
Any trading decision unless based on logic and analysis is bound to fail.
There is nothing scientific about predicting forex market movements.
At times movements are result of social, economic or political factors.
There is no way to predict in advance how the forex market will react to these factors.
Hence irrespective of using tools like Elliot Wave or Fibonnaci trading numbers it is next to impossible to ascertain market response with complete accuracy and precision.
If prediction is one big mistake, what is the alternative? Go by the price momentum.
Check that your trade transaction is in the same direction as that of price momentum.
The chance of succeeding and making profits in a trade transaction automatically goes up by trading with price momentum.
.
Stochastic and Relative Strength index are two of the most popular momentum indicators.
These indicators will serve as a guide for determining levels at which to enter and exit.
It pays to use momentum indicators if you really want to make it big in forex trading.
Stay away from predicting price movement to protect your forex capital.
Base your trading decision on sound logic and analysis to succeed in forex trading.
If you are new to forex trading, understanding the mistake in detail and avoiding it will go a long way in defining your success in the forex market.
When you are new to an industry you easily believe what others have to say.
These days internet also provides a host of information not all of which can be relied upon.
One such belief which you will frequently come across is that is necessary to predict currency price direction before entering into a forex transaction.
What is prediction? It is nothing but taking a guess at how the market may move.
Forex market is the largest financial market in the world.
It takes only minutes if not seconds for currency price changes to happen.
In such circumstances there is no way to predict market movements accurately.
Any trading decision unless based on logic and analysis is bound to fail.
There is nothing scientific about predicting forex market movements.
At times movements are result of social, economic or political factors.
There is no way to predict in advance how the forex market will react to these factors.
Hence irrespective of using tools like Elliot Wave or Fibonnaci trading numbers it is next to impossible to ascertain market response with complete accuracy and precision.
If prediction is one big mistake, what is the alternative? Go by the price momentum.
Check that your trade transaction is in the same direction as that of price momentum.
The chance of succeeding and making profits in a trade transaction automatically goes up by trading with price momentum.
.
Stochastic and Relative Strength index are two of the most popular momentum indicators.
These indicators will serve as a guide for determining levels at which to enter and exit.
It pays to use momentum indicators if you really want to make it big in forex trading.
Stay away from predicting price movement to protect your forex capital.
Base your trading decision on sound logic and analysis to succeed in forex trading.
