You must know how to trade forex in the unclear market condition. As we know, uncertain is the nature of the market. Every trader who has just joined the best forex broker and is not used to it will be confused to see market conditions that are sometimes erratic and annoying.
When you buy it, the price goes down and vice versa. The forex market is an unpredictable and highly dynamic arena. Naturally, because all kinds of forms that occur in the forex market is uncertainty. The chart is a picture of the reaction of market participants based on the analysis carried out previously.
Accepting Market Uncertainty When Trade Forex
When deciding to enter the world of trading, you must accept the uncertainty of price movements in the market. When you feel you have extraordinary market analysis skills, the feeling of being tempted to enter the market repeatedly can trigger overtrading.
However, when you have done an extraordinary analysis and in fact the market situation has deteriorated and is not following your initial analysis, you may think about it. Why is this happening and what is missing from your analysis?
When you buy, someone out there sells, and they have done what they think is the best analysis. And in the end it is the market that will decide who will end up as the winner.
Sometimes you end up on the right end and sometimes you end up on the wrong end. So, nothing is certain in the market except uncertainty itself. And you have to admit that.
By having a strong analysis and understanding of the broad market, have a greater chance of winning and enough confidence. Remember, professional forex traders in the best forex broker not only rely on luck.
Learn to Take Advantage of Probability
When you enter your market to trade forex like tossing a coin, every transaction has a 50% probability. The basic rule of trading has two outcomes namely success and failure (Profit or Loss).
From the 50% probability, you can increase it to 70% when the indicator makes sure it matches the position you open, then increase the probability to 80% by using analysis based on chart movement and the movement of the chart pattern has been confirmed to be valid.
And increase the probability to 90% when the news or news about the market matches the opened position. However, you can never be 100% sure. Even if all of these factors coincided, this theory could still falter. That's the market you're in.
It doesn't matter whether your setup has a 10% or 90% probability, always trade forex with a stop loss. Even if you are very confident in all the analytical indicators you use, always trade using stop losses.
Hope for the Best, Plan for the Worst
Don't be too skeptical about the market because of its uncertainty, because there is always an opportunity for that uncertainty. For example, always trade forex according to the trend line. However, if the trend is broken, make sure you don't lose too much by using a stop loss.
Make the best trading plan with the odds and plan the worst for your trades and find ways to deal with them. Because there is still a chance of winning in every other transaction you make.
So, if you work hard and join trusted broker such as Didimax forex broker, keep it simple and take breaks when necessary to clear your mind and be ready to get back into the market, you too will succeed and find the code of uncertainty.
The forex market is full of puzzles and uncertainty. But it still has a solution. There are still people who are able to decode the uncertainty of the market and make regular profits when trade forex.