Sequence of Analysis

1. Let the market stretch
2. Support / Resistance
3. Price Actions
4. MACD / Stochastic
5. Overbought / oversold - two long candle (hourly / 4H / Daily

Thursday, October 8, 2020

Scare tactics in forex trading

Do you ever notice even at the most convincing signal directions you would encounter some weird fluctuations that always against your trade. For example when both MACD and Stochastic pointing upwards you are very certain with 80% confidence the market will move up and you initiated a buy positions. Instead of going up the market immediately goes down and very often it goes beyond what you expected. Let's say you refuse to close trade the market will keep slowing down at loss positions until it created some doubts in you of the true market movement. For some traders worst case scenario usually it hits the stop loss point of their trades and ended up losing. Does it sound familiar? And you are left frustrated why didn't it goes according to your expectations based on the indicators' signal.
That is market manipulations by the market maker - and they make sure you are making a loss or even if you are making profits but not so much because you fear the a repeat of events where the market will go against your trade. They use a scare tactics to wear you down and it happens all along until you have a complete doubts making a big loss or get out of the trades with small profit margin. They will never stops at every seconds and minutes day in day out constantly.

What happen then after you have close your trade with small profits or huge losses? You will be surprised to see the market suddenly start to normalize and follow exactly what the indicators is showing. You will shake your head and regrets for getting out too early but it's already done. That is exactly what they are doing to all the traders and of course the inexperience usually falls into the trap.

How handle the market manipulation is to check on technical indicators and also the economic data on that day as well as the opening time of each of the market sessions (Asian, Europe, US). Make sure you are very certain with all the conditions at hands - the probability to go your way at least 80% and your confident is high. 

Now buy low or sell high - then ignore the scare tactics and have faith in your plan. Even if the pierce through against your trade very high just keep waiting. Remember that scare tactics are temporary but it  also happen constantly until you are losing faith on your decisions. Once you are making good enough profit (pips) close it. You are safe and plan for another one.

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