When Should Forex Traders Buy or Sell?
A lot of novice traders are faced with these classic dilemmas: When is the right time to buy or sell? Do they follow the trend? Should they trade the range which appears more predictable? If you have asked these questions as well, here are some tips that may help you find the answers you’re looking for. Forget the idea of “beating the market”. Let the market follow its course and trade it accordingly:
- Check your ego before you trade. Pros do not let their egos determine their judgement.
- Be humble – when trading forex and other markets, it’s always better to make money than to be right.
- A prevailing trend is more likely to continue than to reverse. Use it as your compass in the markets.
- This means buy in an uptrend as prices are more likely to rally higher than reverse, and sell in a downtrend as prices are more likely to keep falling than reverse.
- Finally, always remember that there are no guarantees! Reversals do happen, and the market will always follow its course no matter what. So you must practice good risk management at all times.
