Forex Market : Timing is everything

A good news! You will never be mistaken about the direction taken by the market. If you think the dollar will rise, he is right. If you think the dollar will fall, he is right. The dollar, in reality, rise and fall.

The issue is not knowing where the market will go, because the market will go in all directions. The issue is knowing when to rise or fall. The profits come not from being right on the direction of the market, but of being right with a world market.

We know with certainty what will happen in the future ... but we must take our energies on trying to determine when that will happen. This is one of the keys.

Measuring time accurately is an art.

Is obtained by testing the market before diving into it. Once you have guessed the direction of the market, you can test it with a small, low risk. This would determine whether the entry was timely or untimely. If the initial operation is correct and gives a satisfactory result, then you can increase that position. But if the transaction is struck at a loss, then it starts again and is expected.

What is expected? Either time or more than the market offers more information to substantiate the intended direction.

Then establish a small position, low risk and so on with this process until the market confirms that the thinking was correct.


A good way to limit risk and exposure during the test market is to follow the rule of "maximum and minimum older children." This rule provides that evidence while the buyer-side market (hoping that prices go up), has been beaten by a loss, then just start another test of the market if the market moves above the level it reached when it began the previous operation.

Otherwise, test the market when the seller side, trade only set a new trial if the market achieves a new low after the previous trade.

With this method not only has a strategy to test the market, but protects against a number of unnecessary loss in market access if sporadically, over and over again.

Here is the simple rule: If you expect that prices go up, obviously they are not ready to do so until they at least go beyond what they did the first time when you thought they were ready to climb.

No matter what your belief about the direction the market will eventually correct. While this simple rule, you retain your capital while find the right time and when you find the right time be in a position to take advantage of movements.

And as always ... be disciplined in your trading!