This article explains the causes, countermeasures, and experience of reversing after entering in FX. When trading in FX, you will often find yourself in the wrong direction. In fact, it often happens that you think your entry timing is perfect, but in reality you end up going in the opposite direction. What is the reason for this?
Why does it move in the opposite direction when entering?
Don’t you often enter at what you thought was the perfect time, only to wait and find yourself heading in the opposite direction? The reasons for this are as follows. As a basic knowledge, if you don’t cut your losses if your position goes backwards beyond a certain point, you will be in trouble. It is important to carefully monitor movements and limit losses. You need to feel the situation and analyze it. Make sure to manage your funds properly. If you load an unreasonable lot in order settings, it will result in irreversible results.
trade contrarian
Japanese traders tend to trade contrarianly. When a trend appears, people tend to go against the trend, thinking it will soon reverse, but it usually doesn’t go well and there are many cases where unrealized losses swell. This is a reversal at a time when the trend has not yet ended. If you look at the line and see that it is rising, some people may expect it to fall and want to move in the opposite direction. You can win depending on the rate and environment, but if your recognition is slightly off, it won’t fit well.
Trade for value
Without examining the many support lines and resistance states, isn’t it about time for a rebound without any basis? There are many cases where people act contrary to their beliefs. Naturally, you will lose as a pattern, so it is a risk. This is a phenomenon that occurs because people are contrarian without any evidence to begin with. This phenomenon is especially common among beginner traders who are just starting out. Everyone will fail if they make the wrong decision before understanding the market situation. Information gathering and study will also be required.
jump on the trend
There are traders who take advantage of the timing of a trend and aim to move forward. However, in this case, although it would be fine if the trend was very strong, there are many cases where there is a reversal, resulting in unrealized losses. It is too late to enter after a trend has appeared. If you don’t make an entry before the trend starts, it won’t go well. Look at many long-term candlesticks such as 4-hour and daily candlesticks using technical indicators such as moving averages and see the flow to earn stable profits.
range market
If you get stuck in a range market at first, whether it’s a low or high price, even if you make a new entry, the positive trend will be temporary and you will return. And since the range will continue, you will have unrealized losses and unrealized gains, and you will go back and forth. This is bad timing, so it’s better to wait until the current range market continues for a while before re-entering. If you have a good point now, go right to settlement. When it breaks through and breaks out, it’s dangerous, and if you hold on to it, it becomes a gamble. You can’t afford to worry anymore, so cut your losses.
When is the best time to enter?
When is the best time to enter? That should be the question. To do that, you need to know the market trends. The market generally contracts, diverges, and then the direction is determined. After the direction is determined, it returns to contraction. The best entry timing for traders is when the market goes from contraction to divergence. It is best to predict whether the market will go up or down at this point and enter. If possible, always see definite confirmation once and then enter according to your purpose. It is important to make an entry that is absolutely worthwhile. It is recommended to prevent the greatest risk.
contraction
Contraction refers to a market with no direction at all. It is also known as a range. The chart below shows just that. A contracted market will go back and forth all the time. This is the time to build up the next trend. At this point, traders should predict the direction of the next trend and make a buy or sell. It is ideal to look at the 1-hour chart and see a big break immediately after. When doing so, be sure to consider your capital balance. Be sure to also do thorough analysis of fundamentals, etc.
Source : Tradingview
diffusion
Once the contraction period is over, price movements begin to gradually become more volatile. You will be able to grow a big beard. Many traders enter at this timing. Of course, you will have to buy or sell and wait for a trend to emerge. The important entry point for a clear strategy is this timing, and you will enter once aiming for the top or bottom. It might be a good idea to try out some of them. It would be ideal if it really came out in the end.
Source : Tradingview
direction
When the price movement becomes rough, the next direction comes out. Of course, no one knows whether it will go up or down. Traders must enter at the time of contraction or spread. This is because the initial movement of the trend is where the price range is the most delicious. If you can get here, you can get a big price range and it will be a big profit.
Source : Tradingview
acquire experience and knowledge
To summarize, if you want to lose in the same way as above, it is important to gain experience first. When starting out, it is important to thoroughly practice one fighting style and technique over and over again, and to learn how to go down and up in situations like this. The key to winning at discretion is not to be uncertain or difficult to read, but to win at the moment when you have one certainty. You can definitely reduce subsequent losses with these one place. Be conscious of yourself and play a game with a high probability.
Exness is for scalping
Exness is for scalping. That’s because the spread is extremely narrow. Therefore, if you like scalping, please register with Exness and start trading. Opening an account is free, so please refer to the article below to open one. Leverage is unlimited, and as you gain experience, you will basically understand how to win and stick to it. You will be able to perform past technical analysis on your own.
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