Here’s an email I recieved from a clearly frustrated new forex trader.
My problem is most of the time whenever I go into the market, the trade goes against me.. I m very frustrated each time this take place. How to over come this problem.. When is the best time to trade ? What is the trend going to be for EURUSD for this week.
Obviously, I don’t know what the trend is going to be for EUR/USD. I just do my analysis and looking for good trading opportunities.
On the subject of best time to trade, that depends. For those looking to make short-term day or scalp type trades in the forex market the NY/London overlap period is preferred by many as it’s the highest volume period and often has a lot of things happening. That doesn’t mean it’s the only time of good trading, though, and if you’re a swing or longer term trader the time of day probably doesn’t matter much.
As for overcoming the problem of having the market go against you every time you make a trade, having a consistent approach which has been tested out and proven to be effective helps. I don’t know if this trader has that. If so, then he needs to keep faith in the system. If not, then he’s got some research and testing work to do.
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
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