Timing your trade in the Forex market is very important for the traders. It is like timing when you are going to play your game. If you play your game during your exam, you are not going to make a good impression on your parents as they can also take your gaming console. If you plan to play the video games during your vacation, your parents will appreciate it and who knows you can also get a free cd with the new game. Timing is very important in investment sector as price changes with money. There is no volatility in Forex market if the time remained still. The only reason traders are getting volatility and making money is that with the changing of time, traders know when to enter the market and when to close a trade. It would not be possible for them if there was no timing about their entry. It is also important for exit also as if you stay for a long time in the volatile market, you will lose more money. In fact, the professional Swiss traders are making a consistent profit only due to precise timing in their trade execution. Unlike the new retail traders, they wait for a long period of time to find the best possible trade setup which fulfills all the trading parameters of their system.
It’s crucial for making profit and managing loss
Professional traders always advise the traders not to trade the market for all day. There is a reason why traders always say that. First of all, this market does not have money all time in it. Most of the time there is money, but you have to understand and figure out that time. Traders simply trade the market based on their gut feeling and lose money. If you do not know when to enter to ride on a good trade, you may end up losing all your money on the bad trade. It is not only important to make sure that you are making a profit if you do not time your trade right, you also will lose money from your winning trades. It is very common for traders that they have entered the market and making profits. They become greedy and they do not want to exit the market. What happens next is very predictable. The trend changes and they had no time to close their trade. Wrong timing cuts all their profit.
If you cannot time your trades in CFD trading, no wonder you will never be a professional trader. Day traders do not trade the market all day as they know money is not every time present in Forex industry. They only open their trading positions when there is money to make a profit of it. Follow the successful traders and develop your timing strategy. Never trade the market with other people trading system rather work hard to gain knowledge of this market. Once you develop a strong foundation, you can easily develop your own trading system by using a demo account. Try to learn all the reliable candlestick pattern since it’s a great way to spot quality trades. But don’t focus on the technical part only rather learn all the three major types of market analysis.
Summary: Every single step count in Forex trading. If you want to become a successful trader then you need enter the market at the perfect time. A single delay might even cost a huge amount of money. This market is dynamic in nature and you need to adapt to the dynamics changes to make profit consistently.