Proper Trade Set-up & Executions

Being able to spot market opportunities will always take some real research and analysis, although in the FX market it will be there at all times. Missing an opportunity for some may tend to be an irony where the psychology of the trader is affected sometimes by market movements. It is the investor and traders' perception on how to view the market without being emotionally affected by it.

Market Trends are there to follow, the persistent bias in the market will always show what the true colors of the market would be. Except that the average price swings could be so wide and sometimes narrow at which times the trader's tendency is to loose their patience. For traders to be able to identify such trends sometimes just needs to accept the facts prevailing that weigh heavier than any technical tools provided. The ultimate decision making whether to buy or sell still boils down to the investor willing to risk at the expense of loosing in the market. As most positions are correct, it is in the skill of the traders who can develop properly timing trade execution.

At times even the best of the best traders struggles with the issue. The simple answer to the question can be quite basic such as; when a trade position is on the money then its good. Otherwise, when prices trigger a stop loss order, then obviously its not a good trade. Although, in a defined consolidation pattern where prices that literally go in both directions is an exception to the rule as there are no rules to be broken as a long & short position can still result in the same manner. And timely executed trade entry / exit is what matters the most.

The bottom line results defines the trade after the fact. Likewise, there are other factors to consider even when there are only two sides of the trade to choose from. Often times, investors actively trading their own account, acts on a technical setup presented in the market would make the trading decision based on what is being reflected on the chart. Not that they're considered to be a technical chartist and trader but more often, a bull or bear formation as a trade-setup that can best deliver a potentially good trade is what attracts the trader to engage with the market. 

As mentioned before, it is better to have a position executed well within a major event or a lack of an event. The reason behind this is that most trades executed should not have to be a head on collision with the rapid pace of the prices. As most retail investors have experienced that the trades or orders done is not even a fraction of the total active participants in the Forex market. So finding the right opportunities can also depend on the anticipation that other currencies are available to trade.

Trading Tip for the Day:
Tactical investors and self-directed traders who truly believes in #trading and #investing in the financial markets must first find the time to do their 'Due Diligence' of the markets.
There are NO Quick Fix, Short Cuts or Holy Grails in trading. If these technical tools, price patterns and other methods of trading were as effective as others may claim, then majority of trades would have been winners by now. Unfortunately, its NOT!
Use those tools as a guide and not the sole reason to take / settle a trade position. A clear understanding of '#PriceAction' analysis supported / enhanced by the right tools to choose from can then be very effective.
Most importantly, is to wisely select a market place that would allow / have #access to implement #strategies to protect, and  #preserve #VALUE. While choosing the best probable instrument to engage into trading that can eventually turn such trade position into a #VALUABLE #Investment.  

1 comment:

  1. A timely executed exit strategy is equally important as properly timing a trade entry. The strategies best suitable to outmaneuver the market is what comes next! . . . Alexander@megatrade101