The Unpredictable Condition of the Market

A market is often termed where transactions of buying and selling are conducted. In your place, you might have the actual market place where sellers are selling their products to any interested buyers that are in need of the product. The same goes to the forex market but the only difference is that there are no sales-talks that are involve where everything is setup automatically.

Traders are the participants of the forex market. They are the once responsible in buying and selling different types of currencies. It sounds like an easy job but the truth is, it's highly complicated that you might end up with your own conclusion that profit can only be gained by luck.

A lot of individuals had tried to predict the unpredictable behavior of the market but failed. After losing a large amount of money, they often claim that forex trading is a scam and swears never to come back into this type of business again. It only proves that the survey conducted regarding about the number of successful traders from the unsuccessful once is true. The result of the survey makes a total of 99 percent individuals who are failures on this business while the remaining 1 percent are the only profitable traders.

What makes the market unpredictable?

It is natural that you cannot foresee its future direction unless that you have the psychic ability to see through time. There are actually a lot of things that are unpredictable in nature such as when are you going to the toilet, when are you going to cut your hair and etc... A trader who claims that he or she can predict the market's direction is an over-statement.

The market only moves in two different directions which is either up or down. Through these movements, trends are formed which are commonly used by traders for their analysis. It is by human nature that we tend to follow what the others are doing. Thus, when a lot of people are making buys then you should also buy and the same goes to selling.

Moreover, the most important part to remember is "Don't be Greedy". Always put a range between your Target Profit and Stop Loss to minimize the number of your trades since there will always be another day.

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