If you are not able to see the big picture, especially in Forex, then it is very difficult to trade these days. Market is still being traded on the various themes but only difference is that now volatility is very low and trend is kind of non-existent.
Now who is able to trade a 20 pip / day range with 20/30 pip stop-loss ( as a newbie Forex trade will put it rigidly to 'contain the loss' ;) ), God knows. Of course, someone out there have the skill to scalp even such tiny range ( ohh and deduct those few pips which broker gets ! ) but for majority of traders it is not possible and trading will eventually lead to a path of death by thousand losing trades.
For last couple of years my winning formula is, to be slow when others are fast ! In era of HFT and micro-second trading algorithms, it pays good if you just wait a little and stick to your game plan, rather than trying to compete with machines for those few pips. For last couple of years, one of the cash cow like trade I have preferred is shoring EURGBP. You can read the logic behind the trade somewhere in older post but by just sticking with simple formula and trading it hundreds of times with same bias, I have managed to get healthy returns without even a SINGLE LOSING TRADE ! If you keep on reading BREXIT related BS and try to implement the trades based on some technical analysis or some weird indicator then there is no way you can win over the irrational volatility. Only way to trade such thing is by looking at the bigger picture and being patient.
Not only EURGBP but most currency pairs are exhibiting the similar behavior where you need to craft a plan based on common sense and then trade the next 500 pip range. Ultra low rates are not going to make Forex trading easy as far as I can see and days of few hundred pips of trading range over the good news events with decent follow up are gone. So the future is to be slow and patient in all markets.
Now who is able to trade a 20 pip / day range with 20/30 pip stop-loss ( as a newbie Forex trade will put it rigidly to 'contain the loss' ;) ), God knows. Of course, someone out there have the skill to scalp even such tiny range ( ohh and deduct those few pips which broker gets ! ) but for majority of traders it is not possible and trading will eventually lead to a path of death by thousand losing trades.
For last couple of years my winning formula is, to be slow when others are fast ! In era of HFT and micro-second trading algorithms, it pays good if you just wait a little and stick to your game plan, rather than trying to compete with machines for those few pips. For last couple of years, one of the cash cow like trade I have preferred is shoring EURGBP. You can read the logic behind the trade somewhere in older post but by just sticking with simple formula and trading it hundreds of times with same bias, I have managed to get healthy returns without even a SINGLE LOSING TRADE ! If you keep on reading BREXIT related BS and try to implement the trades based on some technical analysis or some weird indicator then there is no way you can win over the irrational volatility. Only way to trade such thing is by looking at the bigger picture and being patient.
Not only EURGBP but most currency pairs are exhibiting the similar behavior where you need to craft a plan based on common sense and then trade the next 500 pip range. Ultra low rates are not going to make Forex trading easy as far as I can see and days of few hundred pips of trading range over the good news events with decent follow up are gone. So the future is to be slow and patient in all markets.