Do not plan your trades based on prediction

Proper Knowledge of Foreign Exchange Industry is Essential For Newcomers

Many people trade this market without any strategy and they focus on only their prediction. They think this market has some trends that can be easily analyzed with their mind. They do not need to spend their time on the analysis and this is their wrong conception. You need to focus on the market trends with your strategy, not with your mind. Many people trade with prediction and they made wild guesses. Not all the guesses turned out to be in their favor and they lost money. This article will tell you why you need to plan your trades based on not prediction but on your strategy. You may have traded the market for many months and you have developed a nice feeling of the trends but that is not going to help you in making your profit. Every trade has to be based on market analysis.

Trade with ration logic

You need to trade the market just like the senior traders in the United Kingdom. The full-time traders always trade the market with managed risk and they never let their emotions to take control of them. Learn to trade the market based on major three types of analysis. If you focus on the technical factors only, you will never be able to make money in the long run. You need to blend your technical and fundamental data to find the best trades.

Use price action signal

Price action trading is one of the easiest ways to make money in the long run. If you ever see the senior traders at the UK, you will be surprised to their high level of accuracy. Price action trading strategy might seem a little bit difficult at the initial stage but this doesn’t mean you will won’t be able to master this strategy. Learn the basic formations of the most reliable candlestick pattern and you will be able to execute quality trades at any market conditions. Being a price action trader you will be able to trade the market with very tight stop loss which will eventually increase your profit factors. And make sure you have access to the best Forex trading account UK to execute quality trades.

Prediction can be a wild chase

The first risks about prediction are it can be a wild guess. People think they will make money when they are experienced but it is not right. Making profit has nothing to do with your expertise as it is based on your performance. We have seen many expert traders fail at making money but they are still consistent. This is the nature of Forex that every now and then you will lose money. When you are trading with an assumption, nothing can be more dangerous than it in your career. You made some wild dreams and you run after them. The chance that you will be successful is very small. You can lose most of your profit in your prediction if you trade in this way. Better you come back to strategy and place your trades on what your analysis told you. You should use the trend and patterns to make your plan, not your prediction.

They can show you the wrong way

Another risk of trading is it can show you the wrong way. As you are trading based on what your mind says and your heart, there is a chance that you will lose money. There are only a few people who have made money with their prediction. Let us remind you that these people have traded for many years before they trade with their mind. As you trade the market for a long time, you develop a sixth sense of analyzing. It does not come naturally as it is developed based on your practice. It is best for novice traders to only use strategy to trade. Prediction, guesses and all these airy things are better left out for the future.

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