There are thousands of traders in Forex, they are all trying to make money but only few can make them. If you look at their style of trading, you will find that the professional trade with more common sense than trading with their mind and strategy. It is one of the reasons why novice traders lose money in a simple trend. If you do not know how to use your own sense, you will find this trading is has become hard for you. There are many ways you can tell if the trend is going to be wrong with your strategy or analysis but your common sense is more powerful than that. It was given by the Almighty to save us from taking the wrong decisions. Read this article and you will understand how the use a little common sense in our trades can save us from big losses. Forex is an industry where only analysis is needed, but at times, human emotion can also develop our trades.
You need to learn to improvise your plan
There are many traders in Singapore who says they are losing money even after following all the basic rules of investment. Do you think the traditional risk management plan is going to save you in this profession? The professional Singaporean traders don’t trade with by following the simple 2% rule of risk management. They know the complex nature of the Forex market and at times they even improvise their plans.
So how do the pro traders improvise their trading plans? When you are trading CFDs, you need to understand the sentiment of the market. If you are not sure about a certain trade setup, just stay in the sideline as it will save your investment.
Does something sound too good to be true?
This is the first place where you need to use your common sense. There are many brokers in this market and every broker has different brokers. They all try their best to get the customers in their platform and to take the money. They offer many attractive deals but remember, the broker also make their profit from your investment. They like your money not you and that is why they always take their share of money before your trade goes live. You will get many offers from brokers but they all should be common.
If you get an offer that is too good to be true or they sound attractive, you should think twice before making any decision. Imagine all the brokers are giving you $10 free as a welcome bonus to open your account with them. If you suddenly receive an offer where you are invited to get a $100 welcome bonus, there must be something that is not right. They need to follow the rules and giving $100 to every trader can only mean one thing. Either they are not following the rules or there is something fishy. Whenever you reach decisions like this, use your common sense and you can be out of the risks. Learn to control your greed and you will be safe.
Is following the common traders the way to success?
It is the second place where you again need to use your common sense. Most people follow the groups thinking all these people cannot take the wrong decisions. What is true is every trader has the same thought and they all want to make a free profit, at the expense of others. They all get lost and this is why trading is better when you do it alone. If trading with the majority was so successful, why do only a few traders make a profit in Forex? We have only shown you two places where you need to use your common sense but there are more. In every trade, use your sense and try to know if something is not right. Do not greed and try to become rich. Always follow disciplines and trader by the rules. The industry will try to deceive you and you need to use your sense to see through the deceptions.