You must have heard many times that you will have to keep trying until you can be successful. The little secret of forex trading is that the things do not work exactly like this in it. When you are new to forex trading, you can tend to try every other trading opportunity that comes your way and because of it, you can end up doing overtrade. But if you are a smart trader, you will try to find your niche and then stick to it.
The Reason To Find Your Niche And Sticking To It
When you are new to forex trade, you are enthusiastic and full of energy, and thus you do not want to let go of any opportunity. To make yourself a successful trader, doing this is also important, but it has to be done in a planned way. Taking an opportunity just because you are scared to let it go, is way different from planning for an opportunity and the risks involved in it. To be a successful forex trader you have to pick only those trades for which you have done proper planning, and also thought about the management of the risks.
If you are shooting everything that is coming your way, there are a lot of chances of you ending up in frustration. Take this scenario as an example. You lost trade and instantly came across another opportunity. You decide to start with this to recover the loss you just had. Since you instantly took it just because it came along, there are chances that you can lose again and thus be more frustrated. Though if you have selected a niche for your trading, you will never do a blunder as such. To be successful in forex trading, you will have to be a niche trader.
How A Beginner Trader Can Define Their Niche?
When you are new at forex trading, you can see every other opportunity like the one which is meant for you but that is not completely true. You will have to define your niche and to do this there are few factors involved. keep reading to know about these factors and define a niche trading for yourself.
Factor 1: Currency Pairs
If you see the currencies that are traded in the currency exchange market, all of them have certain behaviors. As a trader, you must see what is your personality for trading and it matches the best with which currency.
For example, the traders who like volatility and risk, prefer to trade cross currency pairs like EUR/JPY and GBP/JPY.
Factor 2: Time Frames
Every trader can have different time frames that suit their trading styles. It can depend on things like how much time you want to give to fore trading (not all traders are full-time traders). Once you have figured your trading hours, you should filter the sessions that are available in these particular hours. The filtering should be done based on your trading personality and capability (if you can take decisions instantly or you take your time to analyze trade and then do the execution). Once you have sorted this information, you can pick the most appropriate time frames for and define your niche.
Factor 3: Trading Framework
Developing a trading framework plays an important role in defining your niche trading. Once you have decided a certain framework and gained some experience in it, you will be able to trade like a pro trader. You will reach the level where you can simply use your intuition to predict the trade.
Once you have chosen the niche of your trading based on the above-mentioned factors, you will be able to experience smooth trading. Your results will be better than what you were doing in your initial stages of forex trade. Though it will take time for you to reach this level.
If you want things to be fast for you, the best way is to join a reputed forex trading course. Learning from a mentor can enhance your growth quite tremendously. Here is a link for the best trading course that is being offered by Hafizzat Rusli https://www.hafizzatrusli.com/trading-courses/