TIMING IN TRADING
The market often spends 80% of the time in a choppy state (no clear trend), making trading difficult and risky. If you enter a trade at this time, you may get stuck and lose your advantage, rendering all initial predictions inaccurate.
In trading, there are two factors you need to pay attention to:
1/ The main trend of the market: "Trend is your friend" you have probably heard this quite a lot already.
2/ Timing: This is the more important factor, because entering a trade at the right time can help you make a profit even if you are wrong about the trend.
Good timing helps you avoid losses even if the trend does not go as you predicted.
On the contrary, if the timing is wrong, it can cause you to be eliminated from the market before the price moves in the direction you analyzed.
So how do you find the timing in the market?
You may not know, but we can choose the trading time frame, specifically in the forex market.
It is the overlapping time between trading sessions.
Why? Because it is based on the liquidity of the market.
The liquidity of the market will be at its highest when many people are participating in trading.
The overlapping times between trading sessions will have higher volumes than each individual session, leading to larger fluctuations of currency pairs during the forex market session. This is why scalpers take advantage of trading during session overlaps.
A trading session with high trading volume will have better market liquidity, which means trading costs (spread) will also be lower.
And our orders WILL HAVE A HIGHER PROBABILITY OF ALIGNING WITH THE MARKET PRICE MOVEMENT TIMING.
#tradingtip