Forex is the market is volatile. Every investment that you are making in the market is subject to losing. If you want to place your trades in the market, you have to know the market trend of the market.
Forex is the market is volatile. Every investment that you are making in the market is subject to losing. If you want to place your trades in the market, you have to know the market trend of the market. There are a lot of traders who only know about developing a strategy and analyzing the market. But trading in Forex is much more. You also have to know, a correct timeframe to enter the market and when to exit the market. If you do not enter the market at the right time, you cannot ride on the market trend. If you exit the market at the wrong time or late, the profits that you have made in the market will be gone. You need to be very precise about your entry and exit in the market.
Planning your entry
You need to think of some market movements before you can enter the market. First of all, you have to find the trend on the market. If the trend does the market does not seem to be in favor of you, simply do not trade the market. Your profit will not become less if you trade the market with fewer trades. Also, try to figure out when the time will be perfect for you to place trades. If the trend of the market is over and you enter the market at that moment, you will be in great loss of your money. Perfect entry is important for making money and riding with the trend to make your profit larger.
Planning your exit
The exit is also important like your planning. For example, the market trend is going to end and you are still in the market with your opened trades. If you do not exit the market with your profit that you have made, the more time you are in the market, the less your profit will be. Also, when you are trading against the trends, do not be greedy. Exit the market with a small profit before your profit starts to get small. Many traders think they can make their trades more profitable in the market if they keep their trades open in the market. You also have to take in mind what will happen to your profitable trades if the market trend is over and you do not exit the market. Plan your exit for keeping the profit in your account. If you can follow this simple rule then you can easily become a profitable trader in the exchange traded funds community.
Use price action trading strategy
Trading the financial instrument is one kind of art. In order to have the perfect entry and exit plan, you need to have a solid trading strategy in the market. Most of the expert traders in the financial use the price action trading strategy to trade the live assets as it gives them précised entry and exit point. When you do you price action analysis for certain assets make sure that you are using the higher time frame in the market. Unlike the expert traders, the novice traders trade the lower time frame in the market and often face too many losing orders due to the false spike. Though price action trading strategy is extremely reliable and profitable yet you should do the multiple time frame analysis to filter the best possible trades. When you do this, make sure that you try to find the trade setup in favor of the long-term trend.
Summary: Executing the perfect trades in the forex market is extremely difficult especially if you are new in this industry. As a professional trader, you should always trade the key support and resistance level with précised stop loss and take profit. Last but not the least never trade with the money that you can’t afford to lose.