Trading Forex: Getting a Feel for the Markets

Filed under: Learn Forex Trading |

When talking about trading and the currency markets in particular, you often hear people talking about ‘having a feel for the markets’. This is difficult for the beginner trader to grasp, as being a beginner is all about trying to be logical and follow a formula for success. While, to an extent, you can follow a formula to success (with regards to money management and risk-reward at least), there are elements of trading that really do require experience and screen time.

 

When I first started out trading the forex markets, I kept a visual record of my trades. At the time, I thought that they were really great setups, but now, looking back, I am slightly embarrassed at some of the trade setups that I took.

 

When I look at the markets now, I see them in a totally different way that I did three years ago. One of the major changes is that I now only trade the 4-hour and daily charts. Although I heard many people suggest this in my early trading career, I was always drawn down to the 1-hout charts because there seemed to be far more setups to be taken. However, I now realize that making more trades will not necessarily make me more profit. If I only make ten trades in a month and make a 6% rise on my bank, then I am more than happy.

 

The thing that really comes from experience is the way that you view price action. Recently, I have begun to see the ebb and flow of price action in a much clearer way, and get a feel for where the market is moving. This part of trading is ineffable, and only comes with screen time, experience, and emotional development (i.e. learning to be unemotional when you are trading).

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