There are many people who try to memorize the trading patterns. It may sound surprising to you but you do not know how many people have tried to do that. They think as the trends are always coming, they can save themselves form analyzing the chart if they simply memorize the price movements. When they see the same trend coming, they will put their trades with the old strategy. It is not easy to memorize and some people write down the movements of the price trends. They think it is a waste of time if they are analyzing the chart for every new pattern. It is better if they wait for the old pattern and trade with the same style.
If they have a win in the past, it made them more confident and they will not listen to others. This article will tell you why you should never try to memorize the Forex trends. Though they may seem all common by looking at them, every movement has different reasons for forming. One trend can form because the price of the correlated currency has gone up and the other trends can form because there is a release of a market news. Two different volatilities can change the trend in the same direction and it can confuse you. This article will tell you why you need to work hard on developing the plan without memorizing.
Prepare for the dynamic price movement
Those who really want to succeed in Forex trading profession should understand the dynamic price movement of the financial asset. You can’t predict the price movement of a certain asset with 100% accuracy. There is a high chance your best trade setup will fail. So how do you deal with such situations? Well, the experienced traders in Australia always trade with low-risk exposure. They never risk more than 3-5% of their account balance. If you believe this is the right profession, you have understood the importance of proper trade management.
Trade management is nothing but dealing with your losing trades. How much money you will make or lose should be predefined. If you plan your trade after you have executed the orders, there is nothing you can do. All the planning should be done before you execute the trade. That why the expert always says trade with a strategy. In order to establish a solid ground in the trader’s community, you must have a complete trading system.
Memorizing the price movement of the currency pairs is no good
Even if you try hard you can never make money by memorizing the price movements. They change without reasons and the news also has an impact on their volatilities. It is a silly job if you try to memorize the pattern. The best you can do is write down the pattern in your routine and alert yourself when the same trend appears. You can be prepared for the future trends in this way and get an idea what type of volatility can be expected from these price movements. The movement that is appearing in your chart is unique and it is very unlikely that they will repeat themselves. People have a hope that patterns repeat in the future and they try to place the trades again on the same trend. Not every trader is that lucky and if you want to trade in this way, you will never reach your goal.
Every movement is unique, try to adapt yourself to the change
There is no shortcut that you can use to become successful. You have to follow the traditional style and work hard for your profit. It will take time but you will never go on the wrong path. Every movement is new and the pattern is unique. This is how you have to adapt yourself to the change. Accept and try to change your style of plan and strategy.