Dealing with the Problems of Forex Trading Live Online

Forex trading live online tends to be very fast, and emotional. Especially because of the media and the price action seemingly confirming the media’s opinion.

Forex Trading Live Online and Potential Risks

Forex trading live online poses some risks related to emotional high frequency trading. Especially on news and economic report release days. Where new traders are likely to get very confused and disoriented. Trading online at fast pace, is bound to be stressful. And when traders become stressed, they begin to lose judgemental ability, and fall victims to volatility. The idea of forex trading live online is synonymous with stress, big profitability and motivational trading activity. But that is not necessarily so. Markets can become excessively confusing, more confusing than even veteran traders can handle. It is as though markets conspire against you, in an effort to intimidate you. And make you lose and run away for ever, so as to never trade again. Intimidation is there for sure, and this is a risk that even profitable traders face every day. So to deal with this risk of becoming intimidated, you should refrain from using the media as a way to confirm market opinion, and as if trying to figure out the official point of view. The markets are bound to be volatile on news and economic report days, and interpretation of these news and reports is almost impossible. So you should approach the markets with a neutral, directionless mindset, where you simply want to trade based on volatility and short-lived breakouts. Forex trading never worked using the media and public opinion, and never will. What does work, is original thinking, a directionless approach, and volatility trading. That is the case as far as news and report days go. If one trades the longer term trend, then they will have to use a directional trading method, where the trend can be figured out in advance. And that trend cannot really change over a single trading session.

Forex Trading Live and Fast while Having to Deal with Open Losing Trades

Forex trading live and fast poses all these risks of emotional decision making. But most of what you will read on day trading is actually not implementable in practice. Most mentors teach about using tight stops, and controlling risk and emotions this way. This is all nonsense, in fact day traders are better off using larger stops, as well as opposite hedging trades in day trading. This way many losing trades can be avoided by the time the market closes. All the trader needs to watch is volatility, if the market is bound to be volatile, large stops and hedging, is the way to go. If volatility is expected to be low, the trader is better off not trading the early session at all, and waiting on the sidelines. Successful day traders who implement online CFD trading, focus on volatility first. They use the trading calendar as their volatility forecast, and depending on the day, they use one strategy or another. There’s no one size fits all solution to day trading. Each day will fit the profile of a volatile, or non volatile day, and will be either a trending or a flat day. Risk can be controlled using these simple tips, and many pitfalls can be avoided. In summary, it’s all about knowing volatility in advance, using large stops and hedging trades on volatile days, and avoiding the early trading session on less certain days.