We often see instances where people experience euphoria in winning, so they often forget about management in their trading. The trader’s main concern gets diverted by itself after the market tossed around deals.
Understanding the basic concepts of learning forex can indeed be a reference, but you cannot be sure what will happen in the forex market after a trader opens a position.
Factors Why Most Traders Have not Been Able to Profit Consistently
Even learning the material does not guarantee a forex trader will make a profit consistently. So why are many traders not able to profit consistently?
Don’t Know How to Choose Currency Pairs Yet
There are many factors why most traders have not been able to profit consistently. One of them is because you don’t understand how to choose a currency pair.
As we look a little, currency pairs have their own characteristics. The GBP / USD pair, for example, has a tough nature in trend-making. Even though signals and all kinds of forex combat equipment are considered quite complete, traders will find it difficult to make a decision against the movement.
Another with the pair EUR / USD which has nature slowly but surely, where movement in making the trend continues to produce more power than forecast indicator signal, but can be anticipated to prepare the transaction to follow the direction of the trend.
Both EUR / USD and GBP / USD have characters that can be known in general, but under certain conditions will have differences.
The occurrence of a related official announcement, for example, or a central bank decision can turn the currency movement cycle into a new, difficult-to-track road map of new price directions, especially in the movement of the EUR / USD and GBP / USD pairs.
So, what’s the solution? There are two easy tips:
Record Monitoring Results in a Journal
As long as you can understand the character of each pair, are followed, and know for sure in terms of movement to price volatility, traders can minimize losses and be able to profit consistently.
The only easiest way to be able to find out the movement of a pair is by monitoring it continuously and assessing, weighing, and recording the results of these movements into a trading journal.
Maybe some of us will underestimate or be lazy in doing this note-taking. However, it is very important when the price forms a pattern that has already happened.
The various forms of this pattern are the origin of trend formation. Only a little we know the direction of movement of a market, then we can describe the price pattern. It’s easy of course when you already know the direction, right?
Use The Most Convenient Currency Pairs
The most important thing about choosing a pair is not to take a pair that has never been tried. The fact is, something we never know always gives an awkward effect because we are not used to it.
Choose only one pair that is considered quite comfortable and feels good to use, is the key. There is no need to be provoked by the choices of other people who like a particular pair so that we become interested in taking that pair, even though what we choose has never been or still has little experience with that pair.
Make sure the pair we are using has been tested for a long time or at least three months and produces a net profit of 100%. This will affect psychologically and present the trader with a perspective that transactions using the pair of his own choice can be profitable.
It is undeniable that pairs that have been successfully tested produce an experience that can be used repeatedly in the future. As the saying goes, the wheel is always spinning, this is also true in the forex market. Market waves always produce a continuous pattern of ups and downs.
Without realizing it, we are at the end of writing, and we hope that all traders can profit consistently without being disturbed by the wrong pair selection.
Finally, there is no ivory that is not cracked, I always tell traders to keep trying even though at the moment it ends in ups and downs. We will both be at a point of success in the next five years.