Protecting yourself against the onslaught of the forex market makers is very essential in this game of forex. You’ve quite recently raked in huge profits in the market, you are high on energy and prepared to do it once more. You enter your next exchange set-up and you’re halted out. It has hosed your eagerness, yet regardless you have the majority of what you have earned from the market. You reemerge thinking on the off chance that you got halted out and that the market should get going the other way, however then you’re halted out once more. Taking a gander at your beliefs that have now dwindled fundamentally, you’re furious (which is actually how they need you since they play on your emotions) and you start ‘vengeance exchanging’ to bring your beliefs back, yet things continue getting most exceedingly terrible and you the arrangement becomes noticeably more awful than you started……..
How did this even happen?
You have a clear vision of the edge, so where did you go wrong?
Your mistake was not in understanding forex market maker cycles……Most of the occasions, great exchanges don’t return back. There is normally a postponement before you get the following great set-up. When you make a decent entry- rest, go work-out, cook or play golf.
When the market gives you a potential setup, it resembles a game of football, the forex market makers rush to grab it back. At the end of the day when you reap the profit, the market hopes to grab it back right away. Some of the time, it places you in a losing game for a considerable length of time- this could be days, weeks and even months. The game is the hardest when you are in a range bound market on a smaller time period that can’t be exchanged productively. The main thing that you must be cautious of in a range bound market on the lower time-frames is that once value breaks out, it will break out like a skyrocket and you may be on the wrong side of the trade!
If the market is in a downtrend, at that point it gives you a bearish immersing sentiment and the correct cross on your marker. Presently, you’re energized and you bounce in for the chance to catch your profits. Next thing you know, the trade rapidly fails. But you thought you had the perfect setup, so how could this be!??! You have been cut by the slice and dice because that is how the experts have set you up in the first place.
Restless traders who are constantly anxious to be in the market are the ones well on their way to fall into these chopping blocks. Chopping blocks set in place by the forex market makers. While the market is falling, as soon as it rises (retraces), you start buying. And somebody who comprehends the cadence of the market is shorting all that you are purchasing and taking your cash in the process. You should always remain mindful that you are exchanging with the most wise brokers and dealing desks on the planet and they are starving for your funds. They have loads of extravagant needs that they need your cash for!
So how do you manage this? What is the most effective way to combat this?
- Sit tight for a proper setup! Forex can bring about alot of anxiety and many people feel as though their must be a trade setup taken as soon as they enter the market. You’d be surprised to know that maintaining patience and waiting for that class A entry, will help aid you in the long run. Executing quick impulse entries will only hurt you in the long run. You have to act as a sniper and wait for the perfect moment.
- Adhere to your own rules! You designed them to protect you! Have a checklist of rules for your strategy that starts from analyzing the market, trend direction, and then the entries and exits. It helps to literally, have a chronological checklist of rules that must be met before you even consider taking the trade. This will help you stay discipline and on top of your A game.
- In the event that you get a super trade, take the trade and ride the trade as long as you can. What this will do is max out your max potential RR (Risk / Reward) which will cover your loses in the long run. You should also be compounding and stacking on winning trades. Cut your losses short, let your profits run free!
- If you are ever in a bad trade, CUT IT OFF SOON. If you’re trade goes far against you, it usually means that your analysis of the trade was off to begin with. Let’s face it. You are entering a TRAP.
- STOPLOSS. Also known as a wealth protector. Protect yourself! (stop misfortunes)
6. Sit tight and watch for a better trade setup, and RE-ENTER.
And more, GIVE YOUR SELF A LITTLE TREAT AND A PAT ON THE BACK WHEN YOU HAVE SUCCESSFULLY NAVIGATED A TRADING DAY.
Never stop trying!