Forex Trading is a flavor of 2020. It is just like a ride of sports car but at the same time, you cannot ignore the speed breaker that disturbs this fast and exciting drive. We know that a speed breaker demands a decrease in the speed of a vehicle to avoid accidents. Similarly in order to avoid losing money in Forex trading, there are certain speed breakers that must be considered for earning profit.
No doubt it is a well-paying profession but it is not that easy to make money in Forex trading. If it would have that easy then every newbie had become a millionaire. But the matter of the fact is that hundreds of newbies lose their money in Forex trading on daily basis. The most devastating speed breaker for a newbie in Forex trading is right timing to enter a trade. Many traders witness a trade set-up but not all of them earn profit in that trade setup. Some of them earn profit while others lose their capital in the same trade set-up.
The timing of entering a trade helps you to select the suitable stop loss value. It also affects the reward to risk ratio. The ratios reflect your number of pips in relation to stop loss and take profit. It also guides you to have an idea of how close the take profit value is.
Timing of entering a trade is vital for a profitable trade. If you miss the boat then you should avoid entering that trade. Instead you should look for another opportunity. Now entering in that trade is just like intentionally losing your money. If the intended trade has moved on but by any chance you have missed to enter a candlestick ago then forget about this trade. It is not the end of the world. Wait for another set-up and enter at the right time.