There is a huge potential for the pair to rally up towards 1.1000 + beyond..
A self-control assessment is something that you are required to carry out before each analytical decision and trade execution that you make. Your success and longevity within the market will be determined by your ability to keep a centred and clear mind before executing a trade.
More often than not, when a trader does make a mistake, they will be aware of this error and they will also understand that the aftermath of suffering was indeed self-inflicted.
These mistakes include:
Moving Stop losses
Entering far too many trades at once
You and only you are only in control of your actions within the market. Along your trading journey you will certainly meet your inner demons, despite this it is a great journey of self-development and discipline.
This enticement may lead you into entering each setup that displays itself to you, however this must be fought with good discipline. In a business such as forex, only those individuals who exercise self-control shall be rewarded with positive and consistent trading results over a period of time. In order to achieve this it is crucial that you are aware of the various scenarios you may be presented with, as well as recognising when it is appropriate to enter a trade and when you should take a seat on the back bench.
In actual fact around 60% of the time, the market may not even provide you with a solid, high probability trade setup. Professional mentoring, higher timeframe analysis and the art of ‘trend trading’ is the utmost logical and stress free method in taking advantage of the market momentum. Once you are proficient in reading and analysing price action you will be skilled in recognising the indecisive stages lasting for days, weeks or even months, which are the periods when you should take a break and divert your attention to other currency pairs.
Sit back and be honest with yourself. Are you truly ready? Is your trading system tested and full proof? Have you banked a consistent amount of pips over a considerable period of time, or are you diving in the deep end in the hopes that you will survive? If it is the latter then you are not ready my friend, abort mission!
In the realm of forex a demo trading account is an excellent starting point before you begin to trade your hard earned cash right away. These accounts are accessible to any individual via an online brokerage platform, which are usually delivered through a free downloadable software known as ‘Metatrader 4’. If you cast your mind back to Kindergarten you will remember that for your analysis you should make use of a professional analysis platform that is separate from Metatrader. You should only the broker platform to execute your trades, as brokers can manipulate the market behind the scenes!
A demo account is suitable for newbie traders as it provides you with the ample opportunity to harness your trading skills and market confidence, all the whilst familiarising yourself with the methods of trade execution. This opportunity should not be taken for granted, as it offers essential practice in bringing together your price action techniques.
To begin with you will want to ask yourself the following questions:
Have I treated my demo as I would by own money?
Am I aware of the strategies that enhance my performance the most?
Am I ready to risk my own capital?
Have I traded a demo account long enough? If yes, have I focused on the pips and percentage wins and losses?