Trading with Crowd

It can be difficult and perhaps impossible for some traders to set an appropriate Forex trading methods to take advantage of the market over the long term.

The main explanation is that traders are always looking for the Holy Grail, the perfect Forex trading methods that will work under any market condition. Keep in mind that there is no method that can work all the time.

Loss in trade is part of the deal, but the worst thing you can do as a trader is creating a way and that with closed eyes.


I'm not saying that after the method is not worth it. It is important to establish a plan and stick to it. However, there is something else too often forgets that should be taken into account, and working on your favorite market: Forex trading methods psychology of the crowd


How is it possible to know the Forex trading methods psychology of the audience and follow it?
The market and technical analysis in particular, gives this information, if you know how to read.

We will talk more about technical analysis in the manner of mathematical algorithms or methods, but more people reactions and feelings. It's very different, because it allows you to adjust to market records and follow-ups.


Who are these people I'm talking about?
They are traders, of course, just like you and me (individuals), plus specific actors, such as banks and institutions. The market is a set of traders. Behind every operation, there is someone (I will not talk about trade with robots, because it is Beyond my subject, even if it is connected).


That's it for now and the concept, how Forex trading methods works?
You'll have to introduce some sort of sense in trading methods to understand things correctly. I stand by you list (with all the studies and articles) and try to understand what is behind the market. In other words, I ask questions? What do they do? What happens?

It will help you understand why the market is moving so fast at once, for example. Is it related to my technical templates or not? If not, it might be a good idea to look at different time frames to see if there is something important as support, resistance or specific pattern. At last, can be compared with other currency pairs if you trade in forex, for example.

In fact, you have to behave as to avoid the crowd, dealing with emotions and react rather than act with a certain strategy. You will never actually enter the market when it moves fast. You prefer a quiet period for the Forex trading methods. Therefore, we will leave behind their emotions and trade like a pro. But you will still trade with the crowd taking advantage of her, and she experienced it.

After collecting all necessary information provided by the market, you have two options:

Everything makes Sens for you: you can set a plan and preparation of Forex trading methods strategy (entry and exit requirements, goals and so forth)
You can see the obvious strategy: you definitely should not forget the instrument and try another one

You may notice that this approach leaves no room for the relationship as desired. You should prepare your market before trading it.


I called the article "human crowd," because we wanted to emphasize the fact that you must follow the crowd, that most traders, but never human like him. This means that entering the market before emotions come in and leaving before it is too late (ie when the excitement is maximum).


We do not give here many useful tips for better trading, but actually Forex trading methods is the best recipe for success. Indeed, all the technical aspects come later. It's just a tool and certainly not the solution. It helps me a lot to take advantage of my trading year after year.