How to deal with the extremely volatile market?

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    Majority of the traders always faced one question in their trading career. It is about Forex market volatility. Trading in market volatility is not good when you are losing money in Forex. But many traders could not resist their excitement to make quick money in Forex and they begin to trade in market volatility. The result is known to all and they lost.

    This article tries to deal with one burning question of the trader’s community. Trading in market volatility and if it should be done by traders or not. You should keep in mind that traders get emotionally attached to Forex and if you try to stop them from trading when it is volatile, not every trader will listen to you. There are [possibilities that they will try to trade and they will do. Market volatility is a good way to make money if you know what you are doing in the market. If you do not know what you are doing, you will end up losing all your money.

    You should not trade in market volatility
    The wait is over and here your answer. You may be disheartening to find such a straightforward answer to this question, but it is better for your trading career. A lot of people have a thigh that market volatility is the best way to make money easily and quickly. It was easy because the trend was moving up and down and it was quick because it was moving rapidly. These traders, when the trade in market volatility in their life, could not find this enjoyment in trading. To their horror, they have discovered that market volatility is indeed very bad. You do not know where to trade and even if you do, there is no pattern where the market will stop. Fore trading is all about possibilities but trading in market volatility takes it to next level. If you do not close your trades early, you will be left with no money in your account. You need to learn to find the perfect exit point for your trade to become a profitable trader in the exchange traded funds community.

    But you can trade in market volatility if you are an experienced trader in Forex. Scalpers and day traders take the advantage of Forex volatility and they make a lot of money. It should be remembered that these people are very experienced and they know what they are doing. If you want to trade in market volatility, you should trade in demo account first.

    News trading
    News trading is very much popular in Forex market since it allows the traders to make a profit within a short period of time. But don’t think that this is an easy task. In fact, news trading is often considered to be the job of the elite traders who have many years of trading experience. If you follow your ordinary trading system then you won’t be able to execute profitable trades during high market volatility. You need to learn about lower time frame trading. But when it comes to lower time frame trading you have to deal with lots of unpredictable trading signals and noise. In order to avoid the false signals, you need to learn about multiple time frame analysis. But when you do the multiple time frame analysis make sure that you draw the key support and resistance level in the higher time frame. Use the lower time frame data to execute your trade with precise stop loss.

    Trading the market in a volatile condition is extremely risky. However, if you can learn how the volatile market behaves then it’s just a matter of time to secure big profits during high-impact data release. But always remember to follow money management or else a single losing trade will cost you heavily. Trade the market with discipline and try to maximize your profit by riding the long-term existing trend.

    Francis Thomas

    Most speculators know that the market experiences times of solid patterns and times of parallel running. Numerous speculators utilize an alternate exchanging framework for every condition. However, what occurs in a time of outrageous instability? Any framework a broker may utilize is helpless to the expanded market swings, which could wipe out past increases and the sky is the limit from there. By utilizing either a non-directional or a likelihood based exchanging strategy, speculators might have the capacity to all the more completely ensure their benefits.See more here


    I will read this regulation in switzerland as soon as I get home.

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