Very important concepts which a trader have to keep in mind targeting to a success on the market is in the right moment of entering and leaving the market.
Detecting the exact point to step into the market is just 10% of the whole process on the way to gain profit. It is essential to find the point of leaving the market which is to help to fix a good profit. Usually, the entry accuracy is calculated by 60-70%, however, when closing a deal the trader’s balance may become negative. It happens because the trading strategy was set up incorrectly and also due to that a trader entered of left the market mistakenly.
In order to penetrate into the market more successfully the basics of the technical analysis should be used, several indicators and the economic calendar. The only complexity is to find out the proper indicator which could function well during the flat. Simple indicators are also applicable, they are available in the trading terminal. It is more complicated with the indicators used during the flat, as many of them come late and often redraw themselves. For that reason choosing a flat indicator a trader has to take into account these two facts.
For entering the market it is necessary to determine the instruments described above, and especially the technical analysis and the market indicator. Sometimes, you can add the indicators of economic calendar. Aside from a technical analysis and indicators it is worth using the history while entering the market, for example, 3-4 months history of any pair, preferentially, the most liquid one, compare if the indicators match each other and also if they are suitable for the technical analysis. In case the statistics fits then the indicator can be exploited in trading.
Selecting the exit point from the market is slightly more difficult. One of the ways to step out of the market involves setting a goal of about 40-50 points and following it strictly. As soon as the price touches the set rate the position should be closed, better wait for further signal. This method is especially suitable for the market newcomers with a small work experience on the market.
The second way is more risky but more beneficial. It is required to determine the exit points by means of indicators and a technical analysis. The indicator you operate with for trading which shows the first reversal signs denotes to that it is time to fix the opened position or reverse it into the opposite direction. The same happens with the technical analysis. If you have noticed that the price has stalled and its further movement is problematic then better leave the market. Worth mentioning the support and resistance levels which form after each trading period.
There is one more way to complete the market work. Following this method, a trailing stop can be used which steadily moves after the price, finally when the market reverses the position is closed automatically with a certain profit.
If you want to work and earn on Forex market follow all principles you have chosen for joining the market and for leaving it. The right interpretation of all trading signals will help you to obtain a really good benefit.
