In the field of forex, the word discipline means you as a forex trader you are going to strictly and correctly obey the laws of the trading. For others, discipline means that they are adamant about doing anything but when you compare discipline with forex trading it is a whole lot of ball game. Getting forex discipline is important as more than 80% of forex traders lose their trades, not because they don’t follow a successful trading method or because they don’t implement the correct strategy, they lose because they don’t follow the trading laws. Traders, in a simpler word, have no discipline.
Discipline can not be taught in a class or contained in tools for trading. Forex Traders spend a lot of money attempting to make up for their lack of self-control. The trader that has lost all control at a certain stage behaves in a way that is strikingly reminiscent of a gambler because they have practically lost being a business person whenever it comes to the trade. Such a gambler may be rewarded with a long list of winners, only to play away all the winnings and more before they left the table.
Less discipline leads to emotional trading, and this is the main reason most traders fail. Losing discipline in a trading situation happens every day on the market, and traders use any of a variety of reasons and explanations to defend their mistakes. Sadly, a trader losing control would ultimately lose money as well, more often than not. That is unless, of course, they’re incredibly fortunate.
Forex Trading is practically boundless, the markets being a fully open environment. At any point in time, you are fully free to buy or sell the currencies. There are essentially no rules requiring you to open or close a trade at any particular price or any time. Traders that losing mistakenly think the key to winning is to master the market itself. They fail to confront the truth of not being able to master the forex market. The market is not controllable. Trading can be very difficult, being your own coach would be the only thing that will allow you to be positive about your trading condition. Self-alertness can also help you keep your market discipline. This will also help you make the best choices, and make the right changes.
Economic reports appear to be among the most significant catalysts for short-term changes in any financial market, but it is especially true in the forex market, which not only responds to U.S. economic news as well as to news from all over the world. The foreign exchange is a 24 hours market and news from anywhere in the world can come at any time. The market moves based on economic data and news and can react any forex trader wherever he may be and whatever currencies pair he wants to trade.
For any fundamental analysis of price movement, the most important aspect is to consider the factors about which market players base their decisions. If you like to know the direction of exchange rates in the future, then you need to constantly check for foreign exchange data. Financial and political events have a strong effect on the economy, regardless of when such events happen. A political revolution would have an important effect on a particular country and its local currency. Which is why it will also affect all currency pairs linked to this country. And that sort of forex news is just what an experienced forex trader is going to use it.
Economic growth as a rule of thumb means future prosperity, which leads to improving the currency of the country. Market Traders are looking for these ups in economic growth (positive releases), as they typically give opportunities to move on an upward trend. By comparison, economic data showing a slack in economic growth which leads to the currency weakening of the country. Therefore, a currency’s future value is determined on the basis of whether the actual data reaches, fails or exceeds the predicted level.
Price activity typically follows very similar trends before a significant news event. First of all, uncertainty and momentum are always flat, and prices get worse. This occurs when forex tradersand investors are unaware of the figures behind the data that is to come. Therefore, no new positions are taken and the price simply moves sideways. Occasionally, you can see unexpected increases in volatility, fairly small orders can have a significant effect on price movements when trading volume is weak. Therefore, if you see that your market is entering the sideways, it’s probably a pretty good idea not to enter any new trade positions in order to avoid getting stuck during those sudden spikes.
Coronaviruses are a group of viruses that cause animal disease. In 2019 coronavirus has become one of the 7th members of this group responsible for infecting humans virus, which still causes symptoms like flu.
The new chapter started with an unprecedented worldwide problem – the coronavirus. Late in December 2019 saw China’s has first incidents, and the government quickly sealed millions of people into cities. Wuhan, a popular Chinese city, has become identified as the birthplace of coronavirus which spread rapidly across the whole world.
Coronavirus Impact on the Forex Market
The Forex market effect of the news of the virus outbreak has so far been fairly still limited. Asian equity markets have been marginally lower till now and there has been some downward pressure on commodities and Share. But, if the pandemic deteriorates as analysts say it is likely to, the economic impact will begin to predominate.
The main factor would be the severity of the outbreak, with regard to the depth and period of the market effect. Unless authorities can stop it before it reaches a point of SARS-type pandemic, the Forex marketsmight escape the more extreme negative effects.
Most traders spend time studying how to identify trends or reversals on the chart without reflecting on what those trends or reversals are causing. There are various factors affecting currencies on different TF time frames and it is often difficult to decide the most significant one at any point in time, even though many investors believe in the superiority of one or another factor. You should have, at least, a clear understanding of basic mechanisms to get an idea of the relation between the factors and the price action on different TF time frames.
Forex is not an easy exchange. This kind of thought will easily, eat away from your end result. Fortunately, there are ways of understanding each of the economic and political affecting currency. Currency prices are not changing constantly. Moreover, many stock traders find value in foreign exchange markets because they are related to similar main factors that generate different volatility levels, such as supply and demand.
Supply and demand play the most significant role in forex trading. All the market changes that you see on the chart, whether the market goes high or low clearly shows you the supply and demand forces are at work. Simply, if an item has a big price increase in demand if an item price falls oversupply. If there’s a demand for a currency, it basically means there are a lot more buyers than sellers and hence the propensity to drive up the price. When there is less competition for a pair of currencies (which means there are more sellers than buyers) then the price drop.
Supply and Demand trading strategy is one of the best working techniques in Forex. So how to read the confirmation levels of the supply break demand area to make a decision on any trade we’ve made while trading. Actually supply & demand is the center of forex or any other market economy’s main function, as the trade of services and products for economic value. The level of supply and demand is slightly different from the level of support and resistance. Supply & demand has two zones with a minimum of two lines that covered this point. These two lines have a small gap area that we can enter at the level by calling with a supply or demand zone.
To learn Supply and Demand trading Join TheForexScalper Community with more than 3000+ members from different countries those Traders trade on supply and demand base. Trading daily and sharing ideas and market analysis.
Two powers influencing the forex market that are supply and demand. The secret to understanding forex trading dynamics is understanding the factors that influence supply and demand. Like with every business out there, the supply and demand tradingpowers are also influencing the forex market. Multiple influences such as the business, stock market, political variables, and economic data are predictors of supply and demand.
Supply and demand are also one of economics ‘most basic principles, and it is the pillar of the economy market. Demand refers to just how much (the quantity) a consumer requires of goods or services. The quantity demanded is the number of goods that are willing to purchase at a certain price, the price-quantity relationship demanded is known as the demand relationship. Supply stands for how much the industry will sell. The supplied quantity represents the amount certain good suppliers are able to supply when they obtain a certain market price.
The value of the currency of a country is determined by the supply and demand of that national currency. For instance, in London tourism during the summer 2012 Olympics increased. That was caused the British pound to increase in demand and the pound’s value to rise. Currency rates usually differ as demand for goods varies from nations. Greater demand for UK goods will shift the Forex market for the British pound. Even as supply and demand determine good value, so will supply and demand also influence the GBP value.
Currencies rate and supply-demand for the currency are highly vulnerable to the various political influences. New policy anticipations and political uncertainty are signs affecting investment. Significant increases or decreases in investments in certain countries become the base for the currency exchange rates and also for the forex market. The rise and fall of investments are influenced by various events or political circumstances of different governments.
Forex learning is an important part of the Forex trader’s success in markets. although most learning comes through live trading and practice, a new and traders without experience should learn about the forex markets as much as possible, including the economic and political factors that influence the chosen currencies of a trader. Forex work is an ongoing process because Forex traders need to be prepared to respond to changing market dynamics, legislation and events around the world.
Every one of us suffers losing trades because it’s part of becoming a forex trader, but if you notice that you’re losing more money than you’re earning and that you don’t know where and how to stop it, you obviously have some bigger issues you need to deal with and fix until you can stop the bleeding. The major reason most forex traders lose money is that they get stuck up in a game of emotional trading rather than actively managing their emotions on the market by sidestepping all aspects of their trading mainly.
If you really want to develop the right forex trading mindset and control your own emotions while dealing with the markets, you need to understand and enforce proper forex financial management first. The cause too many fx traders get emotional when trading is usually because they either lose too much money or trade too often. If you risk so much money per single trade, you will lose more, this usually causes you to become more anxious about trade and more emotional overall.
What you are actually doing when you consider yourself over trading is behaving psychologically and playing like gambling. So to stop losing money in forex trading, you need to learn how to monitor your emotions by getting a comprehensive forex risk management plan which also includes information on how to avoid overtrading. The only way to prevent overtrading is to know exactly what you’re looking for in the market, and just take a little time off the markets after every trade, whether this is a winning trade or a losing trade.
Join TheForexScalper Community with more than 3000 members from different countries. Trading daily and sharing ideas and market analysis.
IC Markets True ECN trading environment allows you to trade online on institutional grade liquidity from the worlds leading investment banks and dark pool liquidity execution venues, allowing you to trade on spreads from 0.0 pips. You can now trade along side the worlds biggest banks and institutions with your order flowing straight into our true ECN environment.Trade in a true ECN environment with no dealing desk or price manipulation. IC Markets is the online forex broker of choice for high volume traders, scalpers and robots.
For USA & Canada clients i recommend FXChoice which is also a very good broker.