Do not exit a trade during heavy price fluctuations

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The Forex market is more like a stock market. 5here is no difference between Forex and a stock market and yet many traders fail to make money in Forex. Most of the time, it is the trader’s fault that they exit the market before there is any real activity from where the traders could make money. In Forex, when you are trading in this volatile market, you need to suit yourself with the volatility. This market always experiences normal fluctuations in the price level of currency pairs and if you exit the market early, not only you are going to lose your potential profit but also your money. You will gain a valuable insight why you need to hold onto your trades even when the market is moving against you.

The market has some normal fluctuation rate

No market is out of volatility in fiancé. In this market, as Forex is the largest investment market in the world and also the most piqued market, it is only normal to expect that this market will be the most volatile market in the world. This volatility is not out of the world and it is also necessary for the traders to make money. When you are trading in Forex, you need to know that this market has some everyday fluctuations rate. This rate is quite common in Forex and traders who have been in the market for a long time know there is nothing to think about it. The problem happens with the new traders. They think of the market fluctuations as a sign they should exit the market. They do not know that the price level always moves up and down even if it is going in one particular direction.

It can also end your career

The most important part of not quitting your trade when the market turns against you is to can also end your career in Forex. This market needs the traders to hold and wait patiently in the market. If you exit the market too early, you will lose your money. If you exit the market after a long period of time, your profit can come short. You have to hold your positions in the market until the market turns in your favor and you are making a profit. Do not try to get the whole profit and exit when you have made a good amount. Forex trading is often considered to be the most elite professionals in this world. So without pin perfect execution of your trading plan its highly unlikely that you will be able to make a decent profit.

Slippage during high volatility

Forex market is one of the most dynamic markets in the global world and every single day more than 4.5 trillion dollars is being traded all over the world. The price of a certain asset is influenced by the major news release of the market and during that event, the market becomes extremely volatility. So if you want to exit your open trade at that time it’s very normal that you will face heavy slippage. You might be trading with the best brokers in the world but still slippage your will be a part of your trading career. Those who trade with the reputed broker Saxo hardly execute any trade during extreme market volatility. They always bring change to their open orders after the dust settles down in the volatile market.

Finding the perfect exit point is very crucial for every Forex trader. You might have 100% entry accuracy level but if you fail to close your trade at the right time then it will be really hard for you to make money in the online trading world. Your trading system must have defined exit point so that you can book your profit safely. Even this also very important for you to minimize your potential loss in trading.