Why the forex market is tough for traders that take trades daily ~ forex trading news alert
Trading the forex market on a daily basis is a misconception held by most forex beginners and the entire “greedy club” of forex traders. Since childhood you’ve heard people say that too much of everything is dangerous. In medicine the doctor warns about the dangers of an overdose or addiction. In nutrition, the nutritionist talks about the need for a balanced diet to avoid the dangers of going out of shape. Similar warnings are endlessly reminded to every trader engaged in the business of of trading forex online.As a forex beginner you are constantly reminded that trading the forex market on a daily basis is nothing but a bad idea.
The truth is that the markets hate constant attention through interraction. Constant desire to have a live trade has disastrous effects for any forex beginner. Trading the forex market everyday is an addiction born out of the desire to make money quick. It eats your account up like a disease that attacks your born marrow and slowly emaciates you into a skeleton. The forex market rewards only if it’s given its room to breathe. Ever heard of those love relationships that die because one of the parties was not giving the other some little space? Well that applies to forex trading and forex accounts too. If you are trading on a daily basis, it means you are losing more because the more you lose the more your online forex account gets suffocated by your wrong decisions.
In the daily office life people cheat to get a day off. Some extend their sick leave just to have a day out of work while others report their bosses to labor officers if their annual live is not granted. So why is it that people engaged in trading forex online love working everyday? What is with the urge to be online on every single hour executing a trade in the forex market? This whole misconception is caused by traders non- familiarity with the dangers of over-trading.
When we log into our forex trading accounts, we never find a notice left by the forex brokers stating “we are closed.” This unlimited access to our online forex accounts pushes further the idea that the online forex market is a 24/7 roller coaster. That’s wrong; markets do go to sleep even though our forex accounts remain accessible to us. The only reason you can choose to trade the online market daily is if your intention is to benefit your forex broker. Whether you win or lose, the forex broker always gains and that is why his trading station will never regulate your hours of trading. The virtual online world does not go on holiday and pays little regard to weekends.
What wisdom is it for a man to trade daily but lose his entire forex capital in a month? It makes no sense. Longevity of a trader in the forex market is only ascertained by the extent to which that trader is mean at executing new trades. If you are too generous and liberal in your interpretation of the forex market, you’ll make no money and your final campaign will be aimed at giving the forex market a bad name.
Trading is so punishing to traders who believe that idle fantasies alone can move the forex market. If you view the forex market using rose colored spectacles, you end up forgetting about the risk involved in trading the market and what follows are losing trades. You lose because your execution of a particular trade was based on a hyped up trading setup on a lower time frame. Fantasies about the forex market are common to those who trade daily.
Forex tutors have warned so many times that we shouldn’t enter trades with setups that form over the weekends, during certain important holidays, and over the month of December. But that should not mean that we are free to trade the forex market as we like from Monday to Friday or from January to November. Online forex tutors only state the acceptable minimum threshold about the forex market and the rest is up to you as a trader in search of success to figure out. How long it takes you to figure out is commensurate to how fast you will drain out your online forex trading account.
December
December is never a good month for the forex market because during that month traders are just unavailable and this implies that liquidity is low. The fact that December is a festive season means that the major market players are not really giving the market much attention and so the tussle between buyers and sellers witnessed in other months dies down. Low liquidity means you are paying more renewal fee for the open orders you have with your forex broker until the time your entry is triggered or your profit target is reached. This comes in form of roll over costs.
Weekends
Saturdays and Sundays are not good days to trade forex either because market activity dies down on Friday when the New York Stock Exchange closes. The market dies out completely on Saturday because both New York and London Stock centers are closed. There is little resumption of trading on Sunday evenings when the Asian sessions reopen. We’ve noted in previous articles the need to trade only the London and New York sessions and that should supply more clues on the need to avoid trading the online forex market on Saturdays and Sundays.
Public holidays
Public holidays in England and the USA matter a lot to the activities of the forex market. This is especially so if the public holiday falls on a week day. It implies that the market will remain closed for the whole day and this has an effect on currency volatility. For example, trading the forex market on a holiday like Independence Day in America might bring mixed results if the holiday is on a week day because that means that only the London Session is left active in terms of volatility. Trust me when I say that it hurts when no one is willing to buy a currency that you just bought at a reasonable price within a reasonable timeframe.
Conclusion
Thinking that you can trade the online forex market on a daily basis is an idea based on either greed or misconception. If it’s based on misconception, I hope this article opened you up to the folly of thinking that you can trade the online forex market on a daily basis. If its greed, you are suffering an addiction of wanting to have more every single day. It won’t be long before everything is taken away from you. You can only trade the forex market when your best trading setup is present with all the supporting factors. That doesn’t occur everyday and you need to be patient for weeks or months to wait for the perfect opportunity to enter a trade. In the trading of forex online, the waiting is always worthwhile.
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