The suicidal mechanism of action in the currency field consists in a constant confrontation between the market, its mood, trend movement and current financial and economic conditions. Speculators of this type are trading at the tops of the price charts, wanting to see the further, positively developing market movement. In their opinion, the next movement should certainly be better recorded and then there will be time to sell. Besides, such figures love to sell in the market going down again – waiting for the subsequent improvement of their sales. There is another type of “specialists” – fans of euphorist trade. This type does not use any profit fixation systems on a deposit account. Each subsequent transaction tries to exceed the previous one, thereby the losses can not only be resurrected, but also exceed the size of the deposit.
“Whest” trading profile
Why do you work for Forex? What are your currency plans, goals, prospects? Do you know your strengths/weaknesses as a trader? The answers to these questions are extremely necessary for the formation of a constant work position in a highly changing market environment. Although a deliberately correct answer to any of the above questions does not exist, honest introspection will avoid bitter disappointments from foreign exchange activities.
Moreover, all exchanges have individual characteristics, which allows them to stand out from the total mass of financial structures. So, as there are news that increase volatility and data forming periods of stagnation. Forex breaking up the awareness of its market, a clear understanding of its basic elements, laws and principles of profitable work. The better the speculator knows the currency exchange, the greater advantages he possesses his many competitors.
Develop a trading style
Are the revenue trading signals that you use? How long it is necessary to allocate for self -development and acquisition of control skills over your own emotions? The deficiency in one of these areas should be replenished with compliance with the conditions of successful mechanical vehicle on Forex:
– The ability to compromise between the most profitable and most unprofitable financial transactions. This fact will allow a specialist to emotionally prepare and realize that sooner or later he will encounter major losses, which, however, should be compensated by large profits;
– Remember that the success of the trading mechanism in the implementation of the set trading tasks lies in the sequential performance of the work worked out.
At the same time, following the rules does not indicate the exclusion of the intuitive abilities of the speculator. The development of intuition sometimes turns the ability to make money into real art.