Get facts right: Accuracy does not exist to a trader but you can attain its equivalent

The Forex market is highly unpredictable to a speculator trader hence we cannot claim to be accurate in our approach to trades. Firstly, we place our trades on findings of our analysis on the past events in the market, an approach referred to as “hind watch bias” and which does not have control on the future trends of the market. In order to raise our chances of succeeding we expose the least possible portion of our margin and leave chances to a string of trades as opposed to just one or two trades.

Professionally, we accept losses as part of trading while working to reduce the extent of losses rather than eradicating loss as a whole. There are so many variables that shape the market dynamics we clearly notice it is all about raising probabilities of succeeding in the long run over a series of trade setups. Here time is of great essence as you not only invest in your money for trading but you also spent quite a lot of time on Forex. Your future success as a trader is also pegged on time. You should not expect to make a single execution and make a kill from it. This is the nature of trading.

High success rate is the perceived equivalent of accuracy

You can always raise your chances of succeeding in FOREX as a trader by doing that which has been proven to work for other traders in the past. In this case we will be relying on the success rate of the well-founded and proven theories. Obviously, there will be need for modification on these theories to match the current state of the market. For instance, you should approach the market in bias of the higher timeframe, but execute your small trades in line with the smaller time frames. The higher time frame commands the general direction of price while the lower timeframe reflects every simple activity of price. If the small timeframe coincides with the higher timeframe we have an opportunity to execute a trade.

We invest in the most favorable market condition when the increase in volatility is exponential and not impulsive. In order to further increase our chances of succeeding in trading we focus on a limited number of instruments that are certainly predictable and specialize in price action and price formation on the chat. Since price action is the actual representation of price in the market we are more likely to make the right prediction based on it. It is from price action that we focus on psychological zones on the chart and trend lines. Furthermore, we become selective on which of the four trading sessions that work with our way of trading in order to align ourselves to high probabilities.

Surely, you can hardly claim to be accurate in trading Forex due to high chances of missing your target as a result of the ever changing market variables, but you can certainly raise your probabilities of making a kill in the long run. However statistical and technical the speculator trading seems, accuracy is almost unattainable. Only count on your probabilities.

Categories: Tutorials

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