Make Money Forex Trading By Utilizing Volatility

Make Money Forex Trading by Utilizing Volatility
Traders in​ the​ forex market are now a​ savvy lot .​
Almost everyone in​ the​ forex market nowadays are self trained in​ reading charts,​ or​ a​ user of​ some form of​ high technology software to​ trade the​ forex market .​
Some have graduated from using simple technical analysis to​ the​ new fangled sophistication of​ neural network forecasting and artificial intelligence .​
But yet a​ great majority of​ these professed experts fail in​ their trading,​ losing money from their trading rather than making profits .​
Why is​ it​ so?
The answer lies in​ the​ devil within .​
the​ traders who win are those who are capable of​ executing their trading plans with discipline and precision,​ and more importantly,​ they can cope with the​ VOLATILITY of​ forex trading.
Theory is​ if​ you​ can identify volatile movements,​ even if​ they are small,​ and execute trades with these volatile movements,​ buying on​ the​ lows and selling them at​ the​ peaks,​ you​ stand to​ make big profits .​
However,​ in​ practice,​ many volatile movements are too fast and tiny to​ be identified in​ time to​ be traded profitably .​
Where larger volatile movements are identified,​ it​ is​ error in​ judgment and the​ speed of​ execution of​ the​ trades that reduce the​ amount of​ profits.
When I​ was conducting research into writing a​ report on​ how a​ trader can recoup his losses after a​ horrendous period of​ bad trading,​ I​ was pleasantly surprised by a​ veteran trader who told me he was a​ profitable trader from day one of​ his starting trading .​
This is​ by no means a​ false claim,​ because this flamboyant trader has always been known both for his tremendous skill in​ trading and for being anything but decent about his skills and his ability to​ make the​ correct calls in​ the​ market.
Being surprised,​ I​ asked him what was his profession before he became a​ professional trader and a​ trading coach .​
His answer added to​ my surprise,​ because he said,​ I​ was a​ professional poker player and the​ runner up in​ the​ Australian poker championship!.
Therein lies his great success as​ a​ forex trader as​ well,​ because as​ a​ poker player and a​ champion player at​ that,​ he was accustomed to​ taking calculated risks.
The secret to​ trading his style was to​ take calculated risks in​ his forex trading.
For example,​ if​ you​ have identified a​ trade,​ and you​ have placed a​ trade,​ do not place your stops too near the​ entry price because the​ odds favor the​ stops being hit most of​ the​ time.
Rather,​ you​ can assess the​ odds and probability of​ the​ stops being hit before you​ place them.
Again,​ when a​ trade presents itself,​ and you​ can compute that the​ odds of​ winning is​ in​ place rather than losing,​ it​ is​ then that you​ can increase your trades.
If you​ desire to​ win big,​ learn to​ compute the​ odds of​ winning,​ and like the​ successful poker player,​ bet big when the​ odds are in​ your favor and stay away from a​ trade where the​ odds indicate you​ will lose.
This is​ where forex traders will measure their risk-reward ratios for their favorite trade setups and can identify which trade setup will result in​ bigger profits and with lower risks .​
This is​ a​ skill that you​ ought to​ learn to​ become more profitable.

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