Charts are not deceitful,–nor will they tell you either. Price action may appear to appear random initially, then patterns start to emerge. You do not require predictions, a structured method of dealing with uncertainty is required. Learn more here!
It is based on trend trading. Find direction and move with the same. When the price rises, go with the buyers and when it goes down, go with the sellers. It is the perseverance. There are a lot of traders who come late or follow the trend. It would be more intelligent to wait till pullbacks, and then to go in with a purpose, not an impulse.
In less active markets, there is the range trading. The prices swings between resistance and support, and this provides chances repeatedly. Sell high, buy low- it is simple. But ranges break, many a time with violence. Losses will mount up without a proper exit strategy. Always be prepared to get out of the way.
Scalping is another game–quick, serious and hard. Traders are looking to make small, quick profits, in and out within a few minutes or even seconds. Precision matters. Costs add up. Profits are made and lost in a flash and this is without discipline. It suits well with some and is a lot to others.
Trading of news introduces volatility. Economic releases have the ability to remit price skyrocketing or diving within seconds. Timing is a key factor and errors are expensive. Spreads increase, execution drags and emotions are shot up. It is usually a better option to view on the sidelines, particularly when inexperienced.
The survival of traders is due to risk management. One loss that is large can roll back weeks of gains. Exposing to approximately 12-2 percent per trade is the norm. It might not seem very fast, but it is better than a one-time profit.
Position sizing should be considered. Profits and risk are increased with bigger trades. It is best to start small and scale up, which will enable a long-term operation. Trading is not a process of winning lottoes, but gradual increase with time.
There are clues that can help, but are not infallible. There are a great many price-laggers. Raw price action, candlestick and momentum changes and structure can often tell the story in a more understandable way. Those who are keen enough will find hints in the market.
One of the least valued tools is a trading journal. Trading, decision and emotion are recorded and patterns are discovered with time. Questions such as; Why did I leave early? or What made me hesitate? are fruitful in making improvements.
Fundamentally, the market is unconcerned. It does not compensate or penalize work or performance-it merely travels. Taking this in will lighten the load. Pay attention to your process, risk management, and continue to turn up. With time, it is that consistency that counts.