ivanlim wrote:I was wondering why do so many traders enter at the wrong price,ending up losing money?
ivanlim wrote:When they see a strong uptrend,making a new high,many traders buy the currency pair.
ivanlim wrote:But why does the price reverse,since there are so many buyers in the market?
ivanlim wrote:Hi all. I was wondering why do so many traders enter at the wrong price,ending up losing money?
ivanlim wrote:Just to clear things up,a trend or correction runs out of steam when the price has reached the closed many take profit positions,therefore reducing the buyers,and letting the sellers take over?
JimmyMac wrote:ivanlim wrote:Just to clear things up,a trend or correction runs out of steam when the price has reached the closed many take profit positions,therefore reducing the buyers,and letting the sellers take over?
That's the general gist of it Ivan, yeah.
Prices are influenced by a variety of drivers.
Some of it is event driven, where individual fundamental items or unique economic events spook the market (generally when the actual results are way out of whack from the market expectation) & cause extreme fluctuations & abberations in the price action.
Some of it is order book driven, where Option barrier defenses, large groups of stops & Commercial activity heavily dictate the direction & destination of the order flow.
Some of it is driven by pure profit taking (& technical re-positioning) at key levels & either affected by a kick up or kick down in liquidity, which usually translates to prolonged periods of range consolidation.
But at the end of the day, price pauses & reverses due to the fact supply absorbs & overwhelms demand & vice versa.
You can see where it's likely to occur & the results of when it's taking place by perusing & observing your technical charts.
darklot wrote:this what I learn while perform scalping strategies with Tickmill account : market are not the only thing to predict, never was, and we never will able to do that! it's a real fact! and the only thing remain is our anticipation called "money management" in real practice it's become sequence of order management.
for now I develop a custom trailing stop, with 0 stop loss order level, and give a flexibility to modify order as near as current market price.
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