Extreme time for the Forex traders
You may have seen been that most of the time drivers are relaxed in their seat while driving their bus. It is because there is no possible threats or corners that can be risky. Whenever there is a tight corner or slippery road comes, they become extra careful and their driving speed also gets decreased. Forex is a large industry and we can learn many things from different people. When you deposit your money and declare yourself as a trader, there are some things you need to know. The first thing is to know that not all times are equal. You cannot place trades all the time and there are some moments you need to watch over your trades and monitor them. If not, you can easily lose your capital. This article will tell you the times that require a trader to be extra careful. Do not panic because we will only focus on the important aspects. Most people are sincere when it comes to looking over their investment However, there are some tricky moments that are often passed by and this article will try to focus on that moments.
The first step
The first step is always very crucial for every Aussie traders. Many people often open a high leverage trading account and make things extremely risky. They start trading in a big position with a big hope to change their life. But it doesn’t take much time to understand they have made the biggest mistake of their life. They simply blow their hard earned cash in the Forex market. You should never start trading with real money unless you have extensive demo trading accounts. Learn to trade first before you start thinking about making a profit.
Relying on other people
There are many signal service providers in the Forex market. You might make some decent money by following their signal but in the long run, Forex trading is all about manual trading strategy. You can’t rely on other people the rest of your life. Start doing some research and try to develop your trading skills. Think smart and act rationally in live trading in the market.
After a big win
Scientists have found out that after traders win money, their brain release a hormone called endorphin. It makes you see things that do not exist and you are sent into a state of illusion. Every time you win a trade, do not place your trades instantly. Take some break and it will help you to ease your mind. It is the most common mistakes that novice people make. They think they have now got some luck and it will soon run over. The best way to use this luck is placed as much trades as possible while this magic exists. Be very vigilant after you have won money and do not take any unnecessary trades.
Before and after the major news release
Golden opportunities can turn into risks if you do not plan your trades carefully. The time before and after major news are released are the most volatile time. The professional traders also could not tell where the trends will go. There is a chance that the existing trend will change and a new trend will appear on the chart. The time is unknown and also the prediction can turn wrong. The best way to stay safe is to avoid trading before and after the major news release. Skilled and short-term traders make money but if you are not one of them, do not trade. Even if you are tempted to place trades, analyze the trends and know the conditions before placing your trades.
When the market is volatile
Volatility is expected but if the volatility is higher than the normal, you need to be careful. They offer big chances and also risk at the same time. Do not place trades if you find the volatility does not go in your plan.