Most trading systems on the foreign exchange market Forex predict the correct input on the market or the best way to manage capital. While these are important, there is one crucial mistake, which rarely speak, but most traders make it.
This is - wait a turn.
I myself fall into this trap many times. We are watching the market, we see the trend and trying to predict where the trend will turn in the other direction.
Trying to predict the turning points naturally - in theory they suggest a low risk and high profit if done correctly. The key word here - right. Markets are dynamic and few who will improve the experience of catching turning points. However, this does not mean that we should ignore the prospects of finding the area of support or resistance .
This means that we should not try to "bet" on the reverse of trend before we see that it is really there. Too often, traders fall into the trap of trying to catch the "falling knife", in anticipation of support or resistance. Here traders lose their money because the market has a nasty tendency to take money traders who are trying to use this method.
This is - wait a turn.
I myself fall into this trap many times. We are watching the market, we see the trend and trying to predict where the trend will turn in the other direction.
Trying to predict the turning points naturally - in theory they suggest a low risk and high profit if done correctly. The key word here - right. Markets are dynamic and few who will improve the experience of catching turning points. However, this does not mean that we should ignore the prospects of finding the area of support or resistance .
This means that we should not try to "bet" on the reverse of trend before we see that it is really there. Too often, traders fall into the trap of trying to catch the "falling knife", in anticipation of support or resistance. Here traders lose their money because the market has a nasty tendency to take money traders who are trying to use this method.