Most traders look for a forex trading strategy that will show them how, when and where to get in to the market, but if you think about this for a moment, don’t most experienced traders keep telling you that you should stay out of the market. You should be patient, you should let trades go, it’s a big mistake to jump on every signal you see, you need to wait for the absolutely right trading setup.
Staying Out Of The Forex Market.
So bearing in mind that the best approach to forex is to be patient and stay out of the market until the conditions are right, might you not want your system to tell you when you shouldn’t enter the market as much as if not more than when you should. You will see so many systems that say if this occurs and that happens and it matches the other then do that, but rarely do you see if that is the case then don’t do anything. If you have a trend following system, you should only use it when the market is trending, and I mean when the market is trending, a lot of traders anticipate that we are about to start a trend since we are coming out of a range, but the market might still range. You should be specific in your system about this, as well as asking if the market is trending, you should also ask specifically if it’s not ranging, this will help you stay out of the market when the market continues to range.
Be Systematically Specific About Your Forex System.
Go through your forex system and specify the non-specific, make sure that the system makes it clear that if a criteria is met then another one is not, if the market is not trending it will be ranging, but it’s always by varying degrees, it’s not a hard line it’s a very grey one. This is why you need to make decisions to not do things when you are trading forex as well as deciding to do things. You might have at some time in the past think about changing a job, you’re not really happy in your work, but it could be worse and there’s no real options out there, and at this time the right decision is to stay out, but you need to actively make that decision as opposed just default or drift into it. Forex is no different, you need to decide it’s a no-trade, then you’ll be happy with your decision, if your system isn’t giving you trades, you’ve got nothing and you tend to hanker for a trade, but if your system tells you, you should have a zero position then you know you are in the right position and will be happier with your trading decision.