Trader Tip 21: You should close you position at your technical target or on a change of the current market sentiment you are on by data, news or comments and avoid the thin trading and get out of it.
Trader Tip 22: Look for some reason to trade and do not look for some price to trade. The market can make a high after high and low after low and there is a reason of that and you should be with. This reason can be technical or fundamental. Do not say it has become so high or so low. It can be go higher or lower as long as it is the same market sentiment and there is no change but just care of the corrective waves when it is to start to go behind 38.2% Fibonacci retracement to 62.8% and total retracement is a strong sign of the market reversing. It is rarely to watch a clear reversing after one top. It is mostly a double top (or a double bottom) or a head and shoulders. These patterns can contain the market technical interest and it can have much more strength after it's success to go through each exercising on its way.
Trader Tip 23: Take care when the second top is to start to be higher than the first one this is a continuation sign on a new wave and not a reversal sign.
Trader Tip 24: No need to average in the light volume and it is preferred to cut loss here. Try to be reasonable when you average and control your taken risk and do not let it to control you.
Trader Tip 25: It is preferred to not average if you decided to go along with a corrective wave and you have said to yourself that it has peaked out. It is risky to do and the pulse wave can cause a strong fast damage to you. It is not reliable to do and waiting for the correction is better than being with it. This can save time and efforts and money and much more attractive chances.
Trader Tip 26: It is mostly better to wait for 38.2% Fibonacci retracement of the pulse wave to start anticipating for another pulse wave and to start your average too if you have already gone along with the first wave and faced the corrective wave.
Trader Tip 27: It is preferred to trade the European currencies in the European session and the US session for intraday traders. These sessions can carry the data and the comments on these currencies which can move them.
Trader Tip 28: It is better to wait for the resistance and the supports breaking than going against them and especially on the first try to breaking them. The historical experienced strong levels can tackle you strongly and breaking it can reinforce you.
Trader Tip 29: The pattern formation can help you to determine you target but the failure of the pattern can lead to a reverse of the result of the pattern whether it was a continuation pattern or a reversal pattern.
Trader Tip 30: It is better to start your normal trading in the normal trading times of the day (not after or ahead of key data or serious comments) lightly and you can average wisely by what you can control easily to catch up with better market rates and try to not go beyond 1/20 leverage of your account on one direction and always determine your stop loss place with each average you take. Do not risk your money and make the stop loss place closer as you can especially if you had placed more weights.
Walid Salah El Din
FX Consultant
E-Mail:
mail@fx-recommends.com