Forex

Forex Trading & Making of Volatility a Profitable Ground

As a Forex trader you enter the markets having as your main interest becoming a profitable trader. This is, you want to know that you made money at the end of your trading journey when you finally close your trading station at the end of the day.

But how is money made in the Forex market? The answer is in the volatility of the market. What this means is that as prices of the currency exchange rates are constantly changing along the trading journey you will have to pay close attention to how they behave and then when you notice a big change in these prices then it is time to make a move and enter a trade in the direction of the major trend. Then, before the trend changes, you close your trade and gain a profit from the difference in your buy or sell price at the beginning of the trade and at the end.

It sound simple in principle, just waiting for the big move and then enter the trade that you think best suits your profitability expectations. But the truth is that it’s not that easy. You must be very careful when dealing with volatility and must have a very “good eye” to see what the market is doing.

This is why many traders prefer to use what are called “trading robots”. These are pieces of software that by monitoring the forex market continually can determine what are the best times to enter a trade , what stops you should use and when you should close the trade. This doesn’t mean that you can’t trade by yourself and pinpoint very good trades but it takes time and lots of experience.. and along with this there may be also money lost in the process. So the decision is up to you.

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