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The Right Time for Placing Trades

The Right Time for Placing Trades

Many people trade in Forex and the main reason they lose their money is because they do not know when to place their tare in Forex. It may seem a little surprising to you but this is what happens to most traders. They only know they need to invest money in Forex in order to make more money. This market is not as simple as that and sometimes you need to use strategy to make profit; the right timing of entering the market is very important for new traders. Many people only have basic knowledge of trading and if they lose their money at the start, they will lose their interest in trading altogether.

After reading this article, you may find that you have been making many mistakes without knowing you were. This article will advise you on the right time for placing trades to make money and also how to keep your investment safe in Forex.

Timing is very crucial for your trading success. Most professional traders are more concerned about the quality of their trade timing rather than profit factors. For instance, if you place trades after a major market movement you are never going to make a significant profit. You need to learn more about different trading sessions so that you can pick the right trading pairs.

Keep yourself updated

You need to keep yourself updated to save yourself from big losing trades. New traders often will say that they have blown their trading account due to a major spike in the price. But professional traders never lose money under such conditions. How do they protect themselves from such events? They always keep themselves updated on major news so that they can position their trades prior to the high level of market volatility. You need to keep pace with the dynamic price movements or else you will find yourself on the losing sides in the exchange traded funds community. Develop a strong urge to learn new things so that you can protect your trading capital. Use low-risk exposure in each trade to avoid big losing trades.

When the market is not volatile

The best time to trade in Forex is when the market is not volatile. Many people know volatility is important for making money. If you open the trade at the same price and close it also at the same price, how can you make money? You will only have the loss that will be incurred by giving the spread to the brokers. Volatility is important only for making money but if the market trends seem to be moving all the time and they are not stable, you will not make money in Forex. You never know when the trend is going to change and this is why traders need to place their trade when the market is at its natural volatility. The price will be moving in a rhythm and you will not have to worry about losing money.

Not after any major events

Major events like economic inflation, currency pairs price changes and also major economic decisions in the world can destabilize the economic exchange market and will have an impact on the Forex market also. You should not place your trade in Forex after major economic events. This is a smart way to guarantee that you are not playing with fire. The market may turn at any time and the decisions may cause rapid changes which may turn into you losing your money.

When the market overlaps

The more traders are investing their money in Forex, the easier it will be for you to make a profit and achieve success in trading. They have the chance to lose money and you will have the chance to make a profit. Never trade in markets where there are a low number of traders placing a trade.

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Source: Main home business mag


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