In my few months of trading, I had always made it a habit of trading daily and sometimes due to the anxiety involved in trading had made some silly mistakes that had cost me several losses in pips(up to 100's) and this had not really gone well with me but the truth of the matter is that there is always another profitable day.
Today, I had the eagerness to trade the market with the expectations of Interest rates of two powerful nations (GBP & EUR) and the data from the USA. With all the spikes in currencies especially of the GBP/USD I decided to chill out on the side line especially after the aftermath of yesterdays trade.
Alas! to my greatest surprise with the ISM non Manufacturing data hitting the market, I saw a drop of more than 200 pips right in front of me Gosh!!! What a waste of good trading opportunity I thought.
The fact is this, with all these drops and the initial ranging of the GBP before the release of its interest rate so many had placed trades and gotten their fingers burnt in the process losing as much pips which could be worth thousands in dollars so whats the big deal you'd say, Its much better you chill at the side line when you are not sure how the market will trend in the long run rather than losing the pips you've worked hard at to accumulate.
A little tip here, yes i need to whisper it so that not everyone gets this clue. It is better you had a sneak at the monthly time frame of the currency pair you trade and if you require a software that will help you plot your daily, weekly and monthly time frames, then there are online forums on forex trading you may join and ask may ask for the indicator so that you can always know what to expect no matter what anyone tells you.
Note of Warning: Its always for the good of those you're stressing yourself to impress trading the currency market that you're alive and feeling comfortable than worrying over losses in pips that might keep you thinking all night. Good luck as you hit that button next time to place that trade.
I'm just a start up guy with quite a load of experience and still counting. Forex just got better. Learn the trade, keep the pips. for more information, http://successcreations.wordpress.com |
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