Never execute your trade based on wild prediction
Many traders like to predict the markets in forex. They place their trades on the market and predict where the price level of a certain currency pair will go. Some traders are one step ahead. They predict the market of Forex before they have placed a trade on the market. When you are trading in forex, you have to know that, there are times when you need to leave the trades out of your hand. When you place your trade on the market, there is nothing that you can do. You can only wish that these trades will go in the right direction that you predicted and will make you money.
But there are traders who only trade the market based on the prediction. To them, Forex market always moves up and down. If they place any trade, it will move up and down and they will make money. The market is not moving up and down and even if it does that movement, not all traders are making money. The professional traders in the Australian trading community always trade the market after doing the perfect market analysis. They never give any place to their emotions and trade with an extreme level of discipline.
Predicting the market will ruin your trading career
If you trade the market based only on your prediction about the market movement, Forex trading is not for you. Other traders will tell you to remain in the market because it is your money that other traders make a profit in the market. You need to develop and use your analysis and strategy to understand the market. There is no word as a prediction in Forex. All the traders know is they have to understand the Forex movement. As a full-time trader, you must learn the art of technical and fundamental analysis in the market. The technical analysis will allow you to find the best possible trading spot in the market whereas the fundamental analysis will help you to understand the strength of the trend in the market.
Facts about trading
There are many traders in the forex trading industry who are trading the market for a long period of time. They have been winning and losing trades, but they are making consistent profits. If they could predict the market in advance, do you think they would place those losing trades on the market? The prediction does not work in trading when you are in Forex. These famous traders also know there is no prediction and you need to build your own money. Yes, you can predict the market, when you have a strategy that will help you to understand the market. But that is understanding, not prediction, based on signal and pattern and your analysis. If you want to make money, use your understanding in Forex. Predicting will make you lose profit in your trades.
Develop a solid strategy
Most of the novice traders in the forex market execute random trades and ultimately loses a huge amount of money. If you look at the professional trader then you will notice that all of them are trading with a solid trading strategy in the market. They know very precisely that without having a solid trading system they will never be able to execute the perfect trades in the market. Always make sure that your trading system is taking care of the risk management factors in trading or else you will lose money even with a robust trading strategy.
Conclusion: Do not predict in Forex. You have your own hand and head. Use that to understand the market movement in Forex and place your trades. Try to find the best possible trade setups by doing the major types of market analysis. When you execute any trades make sure that you are not risking more than 2 percent of trading capital for long-term success.