Be Objective on Forex
Sometimes, it isn’t easy for Forex traders to understand that the currency market is highly unpredictable. The beginners spend a lot of time trying to learn the mechanism of the foreign exchange trade and forward their energy on trying to find a way to forecast movements. Therefore, they naturally believe that there are some common rules that govern the movement of the market. However, this is not true
Although Forex traders can choose between a lot of instruments at their disposal that would allow them to determine the right time to open or close a position, most of them rely only on one instrument In this case, after having opened a position, the traders watch their favorite indicator and usually base their trading decisions only on it, the others being ignored
This may work well enough until the chosen indicator starts telling the traders something different from what the other indicators are. Those traders who are caught in an open position with their favorite indicator telling them to hold, will do so, regardless of the fact that other indicators are recommending to close and get off the market. In most cases, they end up losing their money.
The main problem here, of course, is that the traders aren’t looking at the market as is, only through their own believes about it In addition, they use their favorite indicator to reinforce the ideas instead of considering the bigger picture. Further, encouraged by the fact that their favorite indicator is predicting the profit, the traders are focusing more on money than on the market movements
In case the Forex market wasn’t entirely unpredictable, it would have collapsed, because all market participants would profit all the time. However, there are a lot of instruments out there that can help you predict the direction of the market and such tools are usually doing a great job. However, even in the hands of the experts, the best instruments may occasionally fail to forecast the market’s movements accurately
This is in the nature of Forex – to lose in trade due to predicting the market wrongly, and you should accept it. In addition, you need to learn to avoid getting in a situation where you have few choices. That’s why you have to accept the fact that Forex can have a mind of its own and you have to follow its movements instead of trying to make the market go in the direction you want it to.