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Market Volatilities: How to Turn Them in Your Favor?

Forex volatility is expected by many traders, but many people also like to avoid that volatility? Before we begin this article, we want to tell you that everything has two sides in life. This volatility is not different and it also has both positive and negative sides. The positive side is it is the change in the prices of the currency pairs that gives the traders their profit. If there were no money, you cannot make your money and the broker will take everything from you in the name of spread. The volatility saves you but it can also take your money from you. The industry gets hyper-volatile sometimes and trading is risky at that time. You do not know what is going to happen and if the price trends fall down or skyrocket through the chart. As volatility is an inseparable part of your trading, it is wiser to accept this risks and make your plan keeping the movement of price in mind. Read this article and you will develop some useful ideas on how to get volatility working  in your favor. You cannot control it, but you can design your strategy and trades that are favored by a volatile trend.

Look beyond the plain trends

The first mistake that people make when getting the volatility right is, they use the obvious signals. It is not going to help you in making money as there are thousands of people who are trading with the same signal. You need to be unique and this is where your wisdom comes. Try to look beyond the trends and find out what will happen in the future. We know it is not easy but you have got your demo accounts to try. Forex trading is not easy and you have to accept that. The volatilities that are appearing can be short-timed and they can also be triggered by the brokers.

Use of price action signals

You must learn price action trading to establish your career in the retail trading industry. The successful traders at Rakuten broker often say the price action trading system is one of the best ways to execute high-quality trades at the key levels of the market. As a newcomer, you might not understand how the different patterns of the price action signal work. But if you use the Japanese candlestick pattern in the demo accounts you will understand why it works. Every candle has a different story to tell to the traders. The experts of Rakuten have  unique skills sets they use to decipher the candlestick charts. Executing quality trades is an art. You have to stick to your rules and trade this market with discipline. Though this system is extremely profitable yet you should never take a huge risk in any trade. Always remember the outcome of any trade is totally unpredictable.

Trade in dominant volatilities

Volatilities can be weak and dominant and do not go for the weak trends. The trends have no future and they are not consistent in nature. They can go down and your money can get lost. If the volatility is dominant and it prevails in the industry for a long time, you can take a risk by placing your trades. Dominant volatilities do not go away in a short time and it has a better chance at making a profit. Your chance of success increases when you are pacing trades with dominant volatility.

Not all volatilities are your friend, be smart

Do not get the wrong idea that you can trade in all volatile trends. Some volatilities are risky and they are better to avoid. Hyper volatility can take your money quickly and you need to take a break when that happens. Also, if the trends are volatile before and after the holidays or economic news release, do not trade the market. Be smart in choosing your volatility. It is also a part of your trading strategy.

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