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Trading only as your Trading Plan instructs too. Observing
Patience all the time with the market as you
Let your trades run.To me i think the best indicators are the trend following indicators. For instance; a Moving Average, Parabolic SAR and Bollinger Bands. With these indicators you can easily tell whether the trend is moving up or down. It is also clear to see that the trend in getting in a congestion or it is about to change course. Normally when such scenarios happen, you are likely to see the indicator get close to the price movement or candlesticks or at times crosses over the candlesticks. When this happens, it gives a signal that you should actually open your eyes wide.
However you should not rely on them as confirmations because they are not 100% perfect. Depending on your trading strategy, there are certain things that your consider to generate confirmations for your trades. Follow your trading plan and choose an indicator that fits your strategy and easy for you to use.
Forex Trading is risky for reasons being;
It is all about speculation/ prediction. You are not guaranteed of success. The chances of winning and losing the amount risked are 50:50.
Secondly, you have no control over the market behaviour. Here i mean, you cannot tell the market what to do.The market is always right.It is highly volatile. Any mistake, your account is likely to suffer.
Last but not least, Forex trading highly induce the psychological emotions since you have to trade your own money. Practically, you are quick to attach emotions such as greed, fear,disappointments, regrets which is so frustrating and may lead to poor health in case you lose large sums of money.
However, you should know there isn’t any business which has no risks involved at all. The moment you decide to invest your money into any business, you have already take a risk and it doesn’t stop at that. You have to always expect risks to happen as long as the business exist. Risks cannot to be avoided but can be controlled or minimised.
So what do you do?
plan
You have to come up with a risk management strategy/plan, so that you know what to do in case things don’t go as expected.The same to Forex trading, with risk management, you will be able to minimise risks of losses and profit from trading. Train and Practice Risk Management Techniques and trade as you have Planned.
