Stalking The Foreign Exchange
Remaining patient while stalking the foreign exchange world is definitely not an easy task. Requiring strong discipline, while waiting for the right trade setups to come along, which happen only 2-3 times a day , stalking the markets is an art developed only by the very few.
One has to work on to finding those trades and the "special" number one has been watching for during the trading day. Stalking foreign exchange online, means shortening your time frame and finding entry conditions that make your risk even lower. Short-term setups constitute the best stalking tools, while stalking the markets. Before you step out to trade, learn how these markets work and reinvent the whole way.
The indicators that you may follow or are available might be very general and basic and probably weren't focused on today's market conditions. They might not work well for what is occurring at the present time while stalking the foreign exchange online. As a trader, most of us first start off learning to trade and get fascinated with all the indicators including moving averages and MACD and stochastics. We use charts and try to figure which ones will work with which parameters. Sometimes our analysis does work but sometimes it doesn’t. We don’t find consistency in our results.
While studying everything, you will realize that there is one fundamental – the price. So study the price action and develop trading strategies based simply on price. This will give you a much better picture of the market and a clearer view of potential price changes ahead .Just watch the price and try not to incorporate any volume or any multiple time frames, Try to stick to one chart and one time frame while stalking the foreign exchange world.
Actually, the main problem with most of the traders who aren't consistent is that they tend to be impulsive. With the age of electronic trading, one simply wants to just press that market order button. They learn the hard way, trying lots of different things and then losing money. They have to realize that developing patience while waiting for the right trade can still make them a great trader. There are times of high volatility while you are stalking online foreign exchange. One just needs to stay out of the market until they have a better feeling about good opportunities.
Many traders believe that putting tight stops on any of their trades can yield good results. but this is not very true. The market needs to "breathe" or "adjust itself" before continuing in a particular direction. To account for that high volatility, one needs to have a larger stop and give yourself time to be right.
While stalking the markets, there are a lot of examples that work and many examples that fail. Test setups are basically failed tests of a previous high or low. Many interesting patterns occur after a high or low. . The logic behind tests as an entry signal is to use false breakouts to set up the trade. . These entry signals might set up trades that return big profits, but they are not that reliable. Another high-probability setup is based on the observation that when a market closes in the top part of its trading range, it has a strong probability of opening higher. The converse is also true.