One of the advices given by the masters in forex trading is, Be patient, wait until the right moment to enter the market. It sounds oh so easy, until we did it.

One of the advices given by the masters in forex trading is, Be patient, wait until the right moment to enter the market. It sounds oh so easy, until we did it. In reality, oftentimes we took positions rashly and enter the market in unfavorable condition.

We were goaded into entering the market and buy a pair, only to get into a panic afterward, closed the position, and make a sell. No longer after we sell the pair, the market recovered and prices come back up. You see, forex trading and emotion is not good together.

Trading with emotion clearly dangerous for our account. So remember this one key: Be patient, wait until the right moment.

 

Breakouts And Divergence

There are many ways to identify the right moment to enter the market. It all dependes on the strategy you are using. If you are a technicalist, you might have several conditions to certify the right moments to enter the market. The first condition is when breakouts happen. Breakouts usually occur after a certain chart pattern completed or following sideways movements.

breakoutA Breakout Following Head-and-Shoulder Pattern

Trading on breakouts enable us to utilize moments when the market breaks, that is times when buyers or sellers win in price tug-of-war. Breakouts when prices shot up or down at a time could be very profitable if we managed to enter the market at the right position and at the right moment.

The second profitable condition to enter the market is when divergence happen. Divergence here is difference of indications between price movements and oscillator indicators.

 

High Impact News

On the other hand, for forex traders with fundamental tendencies, the right moment to enter the market naturally is around news release, particularly high impact news release with average movements of 30 pips or more.

Below are some of the most high impact news that influence US Dollars pairs:

  1. Non Farm Payroll USA (100 – 200 pips).
  2. Trade Balance USA (70 – 120 pips).
  3. Interest Rate Statements (approx. 100 pips).
  4. Durable Goods (50 – 100 pips).
  5. Producer Price Index (50 – 60 pips)
  6. PPI excl. Food and Energy (50 – 60 pips)
  7. Consumer Price Index (50 – 60 pips).
  8. CPI excl. Food and Energy (50 – 60 pips).
  9. The Fed Chief Speaks (30 – 100 pips).
  10. Unemployment Rate (30 – 50 pips).

You can check on the fundamental calendar to know when the news are released. You can even see how strong the impact would be in the calendar. Thus, you can adjust your trading schedule with news release times, and avoid having to watch the chart all day needlessly.

By ascertaining the right moments to enter the market, you can get positive growth on your balance pretty consistently because you only choose the right moments to follow the trend. Interesting, isn't it!? And there is one thing. Make your trading targets in weekly instead of daily, so you will not feel the need to open position everyday. The right moment, after all, does not necessarily appear every day.

Be a smart and informed forex trader. A smart trader has an accountable strategy. He has basic criteria with which he opens position and can tell what the chart says. And an informed trader always follow the development of market trend. He always follows the latest news related to forex market fluctuations, particularly on the pairs he traded. Being a smart and informed trader does not require you to stay awake in front of the computer 24 hours a day, but trade forex responsibly.