We all have been looking for some answers while we are trading in the markets. I just found an answer about Forex Trading which might also help you all to know your shortcoming and act on it to improve your trading results. This article is of 3 episodes. So, just read the first one as the next 2 articles are published on the same website.

Yes, answer to what? Answer to a very common question every trader always ask himself or herself.

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Just Found An Answer to Forex Trading Question

The question is “Why I am loosing so much rather than gaining?”

The answer is very simple cause you are trying too hard. You might say what the heck, how come by not trying too hard you will get good gain?

Lets properly understand what I m trying to make you learn.

First, as a trader, you should have a plan. Many of you might be bored by reading this line. You might have read it 1000s of times but having a plan is not like making a Multinational Business Plan. Many traders make trading look uncomfortable by trading when you should not trade. Let’s say if a Dog is trying to sleep but you want to take him to walk on that particular time, no matter how generous the Dog is with you it will bark on you. Same as Forex Market, Why to trade when the market doesn’t want anyone to trade on it. That’s why making a plan is important. How to plan?

Steps to Plan Your Trade and Trade Your Plan

Just follow these steps:-

1. Select maximum 3 pairs (1 Major with another opposite correlating Major with Different Exotic or cross with less spread)

2. Find out S/R of the particular pairs you selected to analyze. You can see daily pivots as well as find out strong support and resistance. Channel drawing and Trendline drawing may also be effective to get on with S/R.

3. Try to read the market, or listen to it what it really wants to express. Let’s keep it simple when a baby is crying for a bar of chocolate you cannot pacify him with a toy like this when the market is going for a scalp situation why try to do long term? When is the market saying don’t trade now why you are looking for a trade? So, reading the market mind is not possible with less knowledge, we all know hammer pattern, Doji, Pin bar, Marubuzo etc. but do we know what these patterns are usually trying to say? Do we have any idea when to trace a fakey? No, we don’t for which we make losses. Even I make some losses by even reading the market in my way as nothing is 100% anywhere.

In my opinion FOREX market reading is like reading a woman mind, where you can’t predict what’s coming next rather than finding probability. Let’s say, you gifted your wife a golden ring, she was very happy. Again you gifted her a golden ring with a different design, she was so happy that she made you chicken biriyani then again you gifted her another golden ring, now she will be exhausted. Why? Cause you are not trying to read the change of demand. Like if you have a LED tv why would you want another rather than getting a Playstation with the money? So, Don’t try to feed the FOREX market with same trade style or indicator. Remember market change like the weather of LONDON. On that, I read an article on Daily Star newspaper today, a quote, ” WE MUST ALL OBEY THE GREAT LAW OF CHANGE. IT IS THE MOST POWERFUL LAW OF NATURE”.

So, be with the change, try to re-educate yourself, again and again, cause a filled cup is no good for re-pouring. Check out Episode 2 of the article for more insights and techniques to overcome trading fear.

Learn from the professional trader and trade for living with MFX University. Join MFX University Today. Exclusive discounts and offers are available for the students. Check out our 2nd episode this article saga.

Thanks for reading
Md. Rockybul Hasan
Founder of MFX – www.mfxcenter.net