Most retail traders forget that they are making their money on the market trends that are suitable for them. But not all trends are profitable for you and you need to know what trading in Forex is all about. There are lots of trends in Forex. Some of the trends are also false as they are made up by the brokers. If you know that trading in Forex is all about the market prices going up and down, there are chances that you will start trading randomly in Forex. A lot of people trade randomly in Forex and this is not a problem for them. They think they have made money by trading randomly and there is no way they can lose money. You can be lucky in this market for few times but you not be lucky every time.
This market is volatile and it is true that the prices are going up and down. There is no randomness in these volatilities and whatever the price of the currency pairs in Forex, there are many reasons. Many traders do not understand this and they think the market can be traded randomly. They begin to place their trades without any analyses and strategies and they lose their money. If you try to follow what other traders are doing in Forex that is bad. If you try to trade the market randomly in Forex, that is worse than the following the other people. Random trading in Forex not only increases the chancesof ending your career, it also increases the chance of losing your money in Forex. This article will tell you why you should not trade randomly in Forex.
Probability factors
Jumping into the financial world is really very easy and it doesn’t require any special skills. But when it comes to making profit consistently things become extremely hard for the retail traders. People in the United Kingdom are well aware of this fact and for this very reason, they work really hard to learn all the basic stuff of trading. But even after having all the skills there is no assurance that you will be able to make money in each trade. In facts, it’s very obvious that you will lose money on regular basis. Now the question comes, how do you make money even after having so much losing trades? The secret lies within the risk-reward factors. Always aim for higher rewards and risk as low as you can.
Keep patience
You need to develop strong patience just like the successful traders at Saxo. In the CFD trading industry there no shortcut way to make millions of dollars. If you are completely new to this market then learn the price action trading system. Use the multiple time frame analysis to filter out the false trading signals from your trading chart. Make sure that you use your rational logic not your emotions in trade. And never trade against the market trend since it will ruin your trading career.
Every trend happens for a reason
The trend that you trade ion the market does not happen in the market because it has been ascended from the sky. There are many reasons that make these trends show on your chart and you have to understand the reasons behind it. If you do not understand these reasons and only trade the market randomly because the prices are going up and down, you cannot be a successful trader in Forex. All the prices and trends in Forex happen for reasons. The market can be volatile, the price of a currency pair can fall and there can be many reasons. Know what are these reasons and you will know there is no randomness in Forex. Whatever is happening in Forex happens for a reason. Trading the market randomly will only increase your chances of losing money. Trade when there are trends that can make you profit in Forex.