In order to make money in the Forex market, it is not enough just to desire. Most of those who come to Forex are looking for quick money, but the foreign exchange market is also work. For a trade, the trader must not only click on the order, buy or sell, but there is a lot to check before taking this step. Let's take a look at some of the steps.
1) First, a true trader enters the higher time frame to determine the trend (the main price movement). The mistake of most beginners is that they just do not feed them honey, but let them open a deal exactly at a trend reversal. And they sit in position, thinking that the price will move further. Nothing of the kind, if the senior time frame (day, week, month) for each type of trade indicates the continuation of the trend, then a 90% guarantee will be so. There is no need to expect big profits. The price gave a little, take it. This is how experienced workers of the market trade. You cannot sit long against the trend.
2) Many newbies do not take into account the opening of continental exchanges. For example, if you saw a buy signal, but none of the exchanges are open by the time interval, then it is too early to enter the market. You need to wait for the opening, and look at the minimum prices, etc. The lowest prices if we buy are the lows of our time frame. Very often, many novice traders are carried away by a stop loss, because they opened a position when prices have not yet been set. Let me explain that big exchange players are looking for better prices. But if you opened in the middle before the open, then your stop will be that profitable price. After the price renews the minimum, the market will move afterwards. By the way, the standard VOLUME indicator in MT4 and MT5 shows these moments. If there is not much volatility, it’s better to just wait. As soon as volatility begins, it means that.
3) There is a factor that some believe to be true. If the price has been going for a long time, then the market will reverse soon and the price will go back. This is the most powerful delusion. The market can go with the trend for a very long time, and after a flat (sideways) appears, it can continue the trend without reversing. And here, some do not even set limits on losses, confident that where else should the price go. But this is a mistake! Often it is this kind of confidence that leads to the loss of a lot of money. Fleet is not a guarantee of a reversal. There are signs of a reversal, but sideways are not yet reversals.
When everyone tries to trade after learning, they try not to lose the deposit, and when they get more than five profitable trades in a row, then they try to increase the lot, which leads to great risks and the market may move against the participant's forecast.
Some participants turn the forex market into a casino where the lot acts as chips. By increasing the lot using the martingale system, the trader can lose the deposit, and the main goal is to get more money in a short period.
95-98 % of traders leave forex due to volatility of income, and the risk of losing funds can greatly affect a person's wallet. There is an old proven method to save your remaining money. In some forums about earnings, I came across critics of the forex market, they openly declared that the market itself was fraudulent, where there is allegedly a big John who pumps money from our simple gullible people. Maybe so, where a trader opened a deal against yours, makes a profit and withdraws his honestly earned money.
But if the price stays and dances sideways (flat) for 3 days and you are looking for a trade entry and it has matured, but news is coming, then it is better to skip this moment and wait for a spectacular elk trader to get rid of all naive traders. If the price dances for a long time and during this period it has not gone out of the range, then the central banks will look for more favorable prices. Where are the most profitable zones? And where all the hasty ones put their stops: behind the lows, or if we sell, then beyond the highs. They will be mercilessly "licked" on the news, and then the market will go where it needs to go.
The third situation can be explained by the state of the pound. In the past weeks, the Brexit situation (Britain's withdrawal from Europe) was discussed and the Parliament of England quarreled again. How did the pound behave? The price of the pound / dollar currency pair dangled in a range and plunged down. Someone could come to the conclusion that it is necessary to buy, because for everyone this is the most profitable point. The news was ahead and as soon as they came out, there was an upward impulse, and then the price went down slowly. It was a provocation. But if you understand the power of the influence of this news, then opening a position would be risky. Due to such long-term uncertainty at the top of the UK, the pound should weaken. The reason lies in simple instability. The currency strengthens when there is certainty and falls when there is "uncertainty" about where the country is going.
To make money on Forex, you need to take into account news data and enter trades not with a desire to make money, but with a clear awareness of your losses. When we learn to distinguish provocations from true movements and enter on corrections after news, then we can safely enroll ourselves in the ranks of successful traders. And for newbies, it would be very useful to attend webinars on fundamental topics.