Trading Forex Market Using Your Intuition
Successful traders do not wait for a robotic trading system to help them in buying and selling. They also don’t wait for 5 different indicators so that they can make a move. These mechanical and rigid Forex trading systems do not work after all because the markets are always changing. Many people try to make automatic trading systems, but they do not work. Best traders in the world such as George Soros and Warren Buffett do not use such automated systems to make fortunes in forex trading. They use their trading skill and their trading instinct to analyze and trade in the Forex.
The meaning of trading intuition
There is a trading intuition involved in our day to day trading today, no matter what the marketers of trading systems say. You should be aware of the trading strategy that you are using and stick with it. Then you should use intuition in your trading, which is a psychological feeling that helps you to be able to read the markets. You will develop the aspect of trading through studying how a particular market works, through the screen.
- A forex strategy may be composed of first the charts that should be showing a clear up trending for the last two or three weeks.
- The market should pull back to a support point in the trend.
- Then after tracing, you find a reversal back to the top of the trend you will find an entry point.
How to develop a trading intuition
You can be given the necessary “gut feeling” qualities that will make your trading business successful, you will only get it through learning from experience and practicing trading. No matter what your trading strategy is, you still need absolute discipline and patience to be successful in Forex trading. You should follow your favorite markets through virtual trade, and get in touch with the markets through demo-trade.
This will help you to get close and understand the markets. The markets are not the same; each has its own influencing factors, volatility, and dynamics. Pick several major markets and familiarize yourself with them, their dynamics and price action. Focus on just 3 or 5 markets at the beginning and become an expert on them. This will help you to become more in tune with the market, and you will develop a natural gut feeling of reading the markets.
You should start by getting an education about trading strategies, to understand strategy theories and how to use them in trading, use them in a demo market account and a live account after you are certain in your trading skill. The exact time it will take you to develop the complete trading intuition cannot be determined as you are a unique individual with own capabilities. If you truly commit yourself, be disciplined with a lot of passion in becoming a successful trader, you can be able to develop a trading intuition that can make you profit in your trading business.
Start your trading business today if you want to be successful, be patient and after experiencing the trade, you will have the intuition to trade. Then you will start winning trades, making a profit.