There are a lot of traders in the market. Each of them is trying to place trades in the market and beat other traders. When you beat another trader, the money of that trade is coming to your account, and if not, the market gets the money and increases in size. But there is also another type of traders who are trying to beat the market.
The market of Forex is very large and is spread all over the world. It is not a fixed market where traders of one country are trading and exchanging currencies with another fixed country. This market has no barrier and you are free to trade whatever currency pair you would like. All of this result in the giant growth of the Forex market and in consequence, the market cannot be taken down. It does not think of the other traders who are trying to manipulate the market, or trying to bringing it down to the ground.
As long as you are a trader in the market, this market is impossible to beat and it cannot be cornered. All you can do is a trade with the market trend. That is why we say, “Trend is your friend” in Forex.
Trend is your friend
As the market cannot be brought down, what you can do to make money is to flow with the trend. If there is a dominant trend in the market, place trades in favor of the dominant trend and you will benefit. If there is a minor trend in the market, wait for the market to show a dominant trend.
It is the only friend that you have got in Forex. As long as you are trading in the favor of the market trend with right trades, it will be very easy for you to get money in your trades. Most trades do not keep in mind the trend and try to analysis the market with their strategy.
If the market trend is not in your favor, there is a very small chance your strategy will succeed. Do not place trades on the market if you have not figured out the trend of the market. It is not called your friend without reason. It is better to stay on the sideline rather than losing money.
Price action trading strategy
Price action trading strategy is one of the most reliable trading strategies in the Forex market. If you trade the key support and resistance level using the highly reliable candlestick pattern, then you will never have to worry about the required forex margin as you will automatically use proper risk management factors.
Mastering the art of price action trading strategy is not all simple. You need to have a solid foundation in the Forex market before you can even find the highly reliable candlestick pattern. If you trade with an extreme level of patience then within a few months you can also execute high-quality trades in the market, just like expert traders at Saxo.
Though the system is extremely reliable and profitable you should never trade against the long-term prevailing trend, as it increases the risk exposure in the market. Always make sure that you are doing the fundamental analysis along with the technical analysis to place a balanced trade in the market.
Summary: Trying to beat the market will cut short your profit. Trade in the markets favor to make money. When you do your technical analysis, make sure that you use the higher time frame since it will give your quality trading signals. Always focus on the highly reliable candlestick pattern to execute your trade in favor of the long-term prevailing trend. Couduct your fundamental analysis since it is one the best way to measure the strength of an existing trend.