The market of Forex has many conceptions among the traders. Many people think they have won the market but they are losing money. Many people think they cannot win profit in Forex in their lifetime but they are making profit consistently.
You do not know when the luck is going to smile upon you and you need to be working on the market. The rules of trading in Forex are very simple. You do not have to have a degree and if you are familiar with the “turtle experiment”, you know what we’re talking about. Traders can be successful in Forex if they can read their chart right and know what’s the ongoing trend on the market. Trends play an important part in the career of a trader. When you are trading in live markets or you’re trading in demo markets, you cannot make money without trading with the trend. Many people do not understand that and they try to go against the trend. This article will try to explore the behaviours of these traders and you will know why it is risky for your account in Forex.
Trend is your friend
We all know the proverb, the trend is your friend. The professional traders in the United Kingdom follow this statement very strictly and for this very reason they’re able to make a consistent profit. If you show a chart to a new trader and ask where the market will go, they will always say in favour of the market trend. And in real life trading, the market tends do favour the long-term trend the majority of the time. But after jumping into the industry rookie traders start placing trades in favour of the market trend. They’re always trying to make a profit on the market retracement. On the contrary, the pro traders in the UK always look for a market retracement to ride the long-term trend.
Some of you might ask how to place trades along with the market trend. For this, you will have to develop a unique trading system to place quality trades in your Forex trading account UK. Make sure that you’re keeping your trading system extremely simple and try to incorporate price action trading systems. You might have the best trade setup, but you should ignore it if it’s against the market trend.
Why they try to trade against the trend?
You have to understand first why these people try to trade against the trend. They see that the markets don’t give the money back to all the people that are placing their trades. They think that the most obvious trend is never going to be profitable and they need to think in some other way. This is when these people get the idea of trading against the market. They think it will make them profit as all the other traders are trading with the trend. Thinking rationally and from the perspective of traders, it may seem right but it isn’t. Why? This is what we are going to find out.
Trend is where the money is
Perhaps the simplest explanation for this is the trend is where the money is. You will never find any trend in markets where there is no money. The trend in this market occurs when there is money in this. They tell you where the price is heading and if the price is going up, you should trade with the trend. If you think you will trade against the trend, you can never be successful. When the prices are going down and you want to sell your currency pairs at lesser price, there is no way, you will be making money. Traders do not understand that and trade against the trend. Always follow the trends in Forex when trading, as this will give you profit in Forex.