Forex : Advice 1

Follows blindly is most Forex traders' fatal psychological weakness. An economical data published, breaking news aired, 15 minutes chart showing a breakthrough, most Forex traders will rush to be first to enter the market. In such situation, most Forex traders seem fearless, not fearing making losses and only worry that others are making profit but not oneself if not fast enough to enter market.

One might argue isn't the number one rule in Forex trading to trade follow the trend? Obviously, it's the ultimate rule: "Follow the trends, it's your friend!". Forex traders need to follow the trend to trade, but not be the first to enter market after any data or news published.

Most often, few economic data are being released at the same times, most Forex traders already enter market once the first figure is out, not even waiting for rest economic figure to be released. The second and following figure released might just reverse the Forex movement.

There are also numbers of Forex traders who watch Forex chart closely, and will enter market when the chart show a steep movement. Not even taking times to understand what are the forces for such movement. It will be too late when they finally know that it's false alarm because they are already in the losing position.

In Forex trading, never be too eager to enter market, learn to overcome the feeling worrying too late to make more profit. Take time to analyse what's the impact of the economic figure released.

It might be a bit late once you have digest all the information, but once you are in the right direction, they are nothing to worry still the (stock) market close unless there are other breaking news.

This is what we call follow the trend, which will be moving on the same side till the market close.