There are many ways you can get cheated in Forex. Many people do not know that there are many unnecessary movements on the market. These noises are the smaller movements of the price trends in your chart. They are known as noises because they do not make any sense and only give a glimpse of the trends. This article will tell you why you need to stay out of these noises if you want to make your money. The noise is something that is not reflective of the overall market sentiments. They are only a part of the market activity and if you want to develop your plan or strategy around it, you will lose your money.
The volatility of the market
Volatility is often referred to as the best friend of professional Singaporean traders. Sadly, the new investors always lose money in a volatile condition. They don’t really understand how to handle the risk factors in the extremely volatile market. In order to adapt yourself to the dynamic market, you have started with demo accounts. Forget about the real accounts or making tons of money. There is no shortcut in the Forex industry. Start exploring online resource and learn more about market volatility. Try to establish an effective strategy to predict the future price movement of the currency pairs.
Use of higher time frame
Those who trade higher time frame data, usually notice less spike. Majority of the profitable Singaporean traders are trading CFDs based on daily time frame data. Though its very time consuming it saves them from the false spike of the market. Start doing the technical analysis in the daily and weekly time frame. Ignore the lower time frame trade setup as it will give low probability trade setups. You don’t have to rush to earn your living from this profession. Few good trades in a month are enough to change your life. So be clever and stop trading with aggression.
They are not an overall reflection of the trends
The first reasons you need to stay away from these noises are they are not a mirror of the currency trading. When you are investing your money, you need to make sure that you are getting a good return. If you do not know what these market noises are, there are chances that you will place your trades on the wrong trades. Most people like to make their money and they only go for the noises as they do not know the difference between trends a noise. One of the ways to identify noise is by checking your chart. If the market is slow or it is showing any lag on the price movements, there are possibilities these are noises. A sound trend will go in its direction without losing the movement.
Can I not make a profit from these noises?
As we have told you that the noises are not a reflection of the currency industry, the traders may think how to get some benefit out of this short-term volatility. There are no safe ways you can pull out your plan because these noises come and go. There are no certain times and trying to be smart can result in losing your money. If you want to make a profit, wait for a good trend and plan your strategy. Do not simply place trades when the price trends move. Know if they are noises and stay away from them.
The noises are random
You cannot know when the noises will appear because they are random. It is a big challenge for the traders as they do not know when it will come. They are random and always be prepared for them. You will get to know and identify the noises as you trade longer in this industry. Your wisdom and your experience will help you in knowing these noises. They may seem profitable but they are not. They are riskier than short-term volatility.