Saturday, December 28, 2013

Stock and forex trading

 If the markets are channeling and the volume is low then step aside and work on your trading plan for the next day of trading.  Daytraders that try and force trades on bad trading days just end up losing more money and get frustrated. Sometimes the market gaps up or down when they open and never presents a good trade the rest of the day. The forex market can have news that totally disrupts any kind of trend and it just chops in a narrow range. When it does just forget about making any forex trades. Remember you can have terrible results if you try and trade a range bound market. It is better to look at the range the market is in and take notes to prepare yourself for the next time. Once you become familiar with the ranges maybe you can place a trade at the top or bottom of the range.
 You need to prepare for this kind of trading. The forex market will have many days when it is range bound and just chopping up and down. Good money management is crucial when you have bad trading days. This is where your trading plan should tell you how many bad trades you are allowed to make. High risk trades will empty your trading account and leave you frustrated. This is the time it is better to go exercise and get your mind off trading for that day.Beginning  traders that lose allot of money fail to realize that bad trading day can happen. Experienced traders stay out of trades on these days. Each day that you are going to make trades you need to analyze the markets and get yourself prepared for the day.  Make sure to read your trading plan and check for news releases. The forex market has news almost everyday.