Four forex niche factors that Forex Academy says to keep in mind
The thumb rule for Forex trading is you should never stop trying. Even if you get consecutive successful trades, you shouldn’t stop trying to reach the next level and make more. Of course, you shouldn’t overtrade. Many traders fall prey to their greed and start overtrading, leading to massive losses as well. That is why Forex Academy, comprising of a team of Forex analysts and researchers asks traders to pay attention to risk management. Those who trade emotionally are more prone to either win or lose big. But, that’s not the right approach.
It is easy to stick to a few trades that give positive ROI. But wouldn’t you want to make more? That’s why it is better to specialize in a specific niche instead of spreading your trade thinly. However, before you decide your niche, let’s look at a few factors that will help you with your decision:
The first thing that experts will advise you about is currency pairs. According to Forex Academy articles on currency pairs, they are the pillars of Forex trading. Each pair has different behavioural tendencies. It is essential that you match your personality with the respective pair for a better trading experience. For example, if you enjoy volatility, trading crosses would suit you, such as GBP/JPY or EUR/JPY.
What is the approximate time you can dedicate to trading? Which is the most active trading session in your country? How much time do you take to make a decision regarding a trade? All these answers demand a specific time period. Try to find the answer to all these questions. It will help to determine the ideal time frame that is suitable for you. In fact, these answers will define your speciality or your niche.
Yes, there are traders who trade according to their intuition. But that’s not for everyone to follow. They are veteran traders, and they know the tricks of the trade. So, unless you are that experienced, it is better not to go down that road. Instead, you should have a trading framework that will help to understand and also internalize market behaviour.
Forex Academy suggests you have different trading frameworks, such as trendlines, moving averages, or chart patterns. The more frameworks you have, the better decision you will be able to make. This is because different frameworks provide a variety of data.
This is the trading pattern that you usually follow. Remember, these are factors that will help to determine your trading niche. If you are able to understand your trading behaviour, it will help to know the appropriate trading patter. For example, if you recognize consolidation patterns, you may have to understand if you are a range reversal or breakout step-up player. This helps to shortlist the niche that you feel most comfortable with.
There is no surefire way that will help you decide your Forex trading niche. You will have to grill and always consider these factors to find the appropriate answer.
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