In order to trade in line with the market you have to know the fact that you can not avoid, namely:
1 You will experience a loss
No matter the strategy or trading system you use or the size of your account, the losses are part of trading. If you want to succeed in trading, you must know the fact that the frequency of large winning trades does not guarantee the end result could profit. It is very natural for traders to expect always correctly predict the direction of price movement in the market to be able to get profit.
But right or wrong pediksi market direction is not directly related to a person's success in forex trading, in this case the profit earned in the long run. Which directly relates to your profits in the long term is a factor of risk / reward ratio that you use on every entry. If the ratio of its rate change, the results will also vary. To obtain the final result of the profitable, the risk / reward ratio is usually set higher than 1, could be 1.5, 2 or even 3.
If you fear loss and often move the stop loss level, or close your position before the time for no apparent reason then you have reduced the percentage of profit (win rate) and make your trading system that you are using less effective.
2 You do not know for sure which one will trade profit and loss which will
If you have a trading system that has been tested with profit percentage of 70% over a period of one year, you will not know which one will trade profit and loss which would, but you can expect that by using the system of discipline then within a year you will obtain a profit after a few times the trade. It should be kept in mind that the results of the previous trade has nothing to do with the trade that you will do.
Every position that you open is independent because the market does not move to certain rules and can not be controlled. If you can discipline yourself and always control for trading in accordance with the trading system that you have examined, then the market will provide trading signals with high probability. In this case you should open a position only if the signal has appeared, and avoid over-trading.
3 The market is always moving without rules and can not be resisted
Are you going to stay afloat against the flow of market price movements or follow the direction of its movement, the market will continue to move with you as well as bring. Why traders trying to hold the flow direction of market movements? They do it because they tend to play with the Psychology of the market. The most common game is you feel you can control the movement of the market even though the flow is never
can. You do not realize that you are struggling against market price movements. On the contrary, you strive to continuously find ways to be able to fight the market.
The flow of market price movement is much larger than you expect. If you try to fight the market, the market will look against your back, but the market is not the main problem. The main problem is how you respond to the flow of the market price movement with a disciplined trading strategy in accordance with the and-tested system.
By understanding the Characteristics of the market and the fact on, you will be able to trade in line with Market movements.
You just read Consistent Trading With Market Part2 and you can Read Part 1 here
