Stick to your rules at extreme market conditions

78496287 logo candlestick trading chart analyzing in forex stock market
78496287 logo candlestick trading chart analyzing in forex stock market

In the market of Forex, you will find that there is always volatility on the chart. The prices are moving, there are changes in the volatilities and the normal volatility is also happening. It will look like the price fluctuations of the pairs are going to change your decision but do not let that affect your trades. If you want to make money, you need to stick by your decisions. This article will tell you how you can always stick to your decisions after they have been made. Many people cannot do that and they are influenced by the changes in the market. They take new decisions in the middle of the trade and they exit the market. The first rule of making money is always believing in your decisions. If you cannot believe that you are going to be successful, you can never win money in Forex.

At times the market will exhibit an extreme level of volatility. Being a full-time Aussie trader you need to have the potential to deal with such market movements. However, some rookie investors often trade with a big lot in the volatile market to secure big winners. At times luck might favor them but considering the long-term outcome, they are just developing a bad habit. Regardless of the condition of the market, you have to stick to your rules.

Keep things simple

Those who follow complicated trading strategies in the Forex trading industry are more prone to make mistake. But if you look at the experts of this market who have years of trading experience, you will understand success lies in simplicity. Developing a simple trading strategy is not that easy. Unless you know the details of major types of market analysis, you will never find good trades in this market. You have been very smart and filter out the best things from different trading strategies. Before you start to trade with real money, backtest your system with demo accounts. If you feel satisfied with demo trading performance, start trading the real market.

Fluctuations are normal and expected

One of the things you need to understand that fluctuations are normal. They are not some risky movements that are appearing on the chart. When you are placing trades, you will always get a volatility on the price. This volatility is important to you because this is how you make your money in Forex. People do not understand and they change decisions. You have placed the trade after analyzing the trends, the charts and also the news. If you change it, you will lose the chance to make money. Expect that the prices will change but it will be within your limit. If the trend is starting to go against you and you are losing money, you can think of closing the trades. Before that, do not change your decisions. Do not close trades if the trends move after you place trades. It is normal and try t understand the pattern of the movement.

If you change, it can become a practice

This is the true risks of changing your strategy. If you can change it one time, you can always change it afterward. When you do something for the first time, you are nervous but when you have done it, you can do this thing again also. Stand on your decision and do not change. Even the price will tell you to quit but do not. This is how you can grow confidence in your strategy. Practice as much you need before trading live as it will keep your money safe.

Fluctuation gives you money

If the price has not moved, you cannot have made the money. This is how the traders make their money in Forex. Try to assess the trend and plan your strategy. If the fluctuation is in your plan, there is no need to close your trades.