Most traders in Forex try to develop their strategy in the market. The strategy is one important thing that every trader needs to have in their trading. It is one of the advantages that will always help you to get an edge over the traders. When you are trading the market with a new strategy, you should keep in mind that you need to trade the market not with a fixed strategy, but with a changing strategy. You need to make it change and adapt to the changing market trend. The mistakes that all traders make regardless of their experience in the market is they like to keep their strategy fixed. They work really hard in the market to develop one strategy and after they have developed it, they do not like to change it or they simply don’t bring new strategy in their old strategy. This is when the old strategy became obsolete in market and traders begin to lose. If you are keen to make money in Forex, you have to know when to bring change in your strategy.
The market changes every time you place trade
This is one of the truth in Forex. This market is not the same when you are placing your second trade. We have seen a lot of traders who have just won a big amount of profit in Forex and when they are placing the second trade, they follow everything like their past ones. But the result is very much different and also, they make a money here too, this amount is not profit but loss. What do they do that results in the loss? Experienced and professional traders say it is their old strategy which was not changed in the new market that resulted in the loss.
This market changes not only when you are trading in Forex, but also when you are sleeping g too. Remember that this is the largest financial and investment market and trillion of dollars are being traded every day. This market is always open in one corner of the world if it is closed in your country. It is an investment industry and the rules and influences of investment changes every time. Keeping your strategy fixed or not bringing any change will not do you favor in the market. You need to make it dance with the market strategy if you want to make money in Forex. However, if you are completely new to this market then use a demo trading account to understand the basic nature of this market.
Keep it simple
Most novice traders believe in the complicated trading system. They think that this market is full of complex price movement and without having a complex strategy they will not be able to make money on regular basis. But this type of thinking is only prevalent among the novice traders. The expert traders at Saxo believes in simplicity. They simply trade the key support and resistance level by using the price action confirmation signal. It’s true that some of them often trades the lower time frame data but still, it’s better to stick to the higher time frame during the early stage of your trading career.
Considering the success rate in the Forex trading industry, you must be extremely careful about your investment. Since 5% of the traders are making money, you must have a clear knowledge and trade the market with the extreme level of discipline to become a part of them. Many new traders have blown their entire trading account within the first few months of their trading career. This market is all about probability and you can’t beat the price movement of the market. Try to learn to trade in favor of the prevailing trend and always focus on the higher time frame price action signal. Make sure that you are not taking more than 3% in any single trade since it is one the key rule to save your hard earn investment.