Recently when I sit down with my husband to discuss on the current situation where some traders faced, it seem to them that there's a change in the pattern as compared to the past. "Haha! The rules never change, but the strategy did!" my husband explained.
Can you imagine during ancient time that there are thousand of people who studied Sun Tze art of war, some won great victory but most got defeated. Why is it that when all of them study the same theory produce different result?
In forex market, it function the same way. If people think trading is easy, then they are making a very BIG mistake! For example, some expertise from other field may have achieve extra-ordinary result that they may think trading it's just a matter of putting the extra cash in and let it run. When it's time for harvest, they just liquidate their position and happily leaving the capital behind in hope that they will ripe the profit again. WRONG!
Many profitable traders are also good observer! They had realized how the pattern of the market have normally works. They will come up with a plan to capitalize the market first! When most traders are going into a position to long or short, they are out of the market with profit pocketed. For example, when we look at the resistance or support level for an entry of a trade, you may probably face the situation where it suppose to have gone to the direction that you may anticipated according to the theory but it went opposite! "How annoying!" That's how you may feel, but the worst is that it headed to the direction that you are looking at not long after you have liquidate your position.
Possible solution
- If you have encounter a string of losses from the similar situation, then you should start to slow down on your entry. Test different methods that you had learned and observes! (for more understanding of technical trading please visit http://forexoceanview.blogspot.com/ for more info) There will be some indicators that will able to produce more accurate signal!
- It wouldn't be possible for the market to change the rules overnight! When it is at oversold or overbought level, price must retrace or reverse. You can be slightly late to enter a trade, as price start to shift towards one direction, that also mean more players are coming in and it is a safer time where you can go in and harvest it.
- If you are not comfortable in using a live account to trial, use a demo account then. Until you are confident again, then get back in to the market.
- Always update yourself with the latest data or reports release! Market normally react according to it. With the latest information, it sure help to get you out of trouble! There's really nothing much technical traders can do about data and reports, but there's always a telltale sign to be spotted technically!
- Avoid trading if you are confused by the indicators! It is either there is a market uncertainty or it maybe you who are not sure which indicators to use at difference market condition. (market always change, indicators can only used as guide-line)
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