Top 75 Trading Blogs And Websites For Traders To Follow in 2018
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Our primary method of tracking and trading forex market manipulation is the confirmation entry along with pre-selected manipulation points. The nice part about this strategy is that it gives traders a mechanic rule set from which they can judge each setup. This video walks through the more discretionary side of market manipulation, outside of the confirmation entry. Have you ever felt like you want to quit trading? One of the biggest changes to forex trading in the Eurozone just took place.
What is that change? Training Articles View More Articles. So, You Want to Quit Trading? Try These 6 Steps First! Get the latest content first. There are several problems with averaging down in forex markets. Thus, this time and money could be placed in a better position. Secondly, a larger return is needed on your remaining capital to retrieve any lost capital from the initial losing trade.
Losing large chunks of money on single trades or on single days of trading can cripple capital growth for long periods of time. Day traders are especially sensitive to these issues.
The short timeframe for trades means opportunities are short-lived and quick exits are needed for bad trades. Traders know the news events that will move the market, yet the direction is not known in advance. Therefore, a trader may even be fairly confident that a news announcement, for instance that the Federal Reserve will or will not raise interest rates , will impact markets.
Even then, traders cannot predict how the market will react to this expected news. Other factors such additional statements, figures or forward looking indications provided by news announcements can also make market movements extremely illogical. There is also the simple fact that as volatility surges and all sorts of orders hit the market, stops are triggered on both sides.
This often results in whip-saw like action before a trend emerges if one emerges in the near term at all. For all these reasons, taking a position before a news announcement can seriously jeopardize a trader's chances of success. Similarly, a news headline can hit the markets at any time causing aggressive movements.
While it seems like easy money to be reactionary and grab some pips , if this is done in an untested way and without a solid trading plan, it can be just as devastating as trading before the news comes out.
Day traders should wait for volatility to subside and for a definitive trend to develop after news announcements. By doing so, there are fewer liquidity concerns, risk can be managed more effectively and a more stable price direction is visible.
The practice of taking on excessive risk does not equal excessive returns. Almost all traders who risk large amounts of capital on single trades will eventually lose in the long run. Day trading also deserves some extra attention in this area and a daily risk maximum should also be implemented. Alternatively, this number could be altered so it is more in line with the average daily gain i. The purpose of this method is to make sure no single trade or single day of trading hurts has a significant impact on the account.
Therefore, a trader knows that they will not lose more in a single trade or day than they can make back on another by adopting a risk maximum that is equivalent to the average daily gain over a 30 day period. To understand the risks involved in forex, see " Forex Leverage: Much can be said of unrealistic expectations, which come from many sources, but often result in all of the above problems.