Don’t panic! That’s the first thing to do – a clear head and a clear plan are always the best ways to go forward at a time like this, when forex trades are becoming scarce and you’re not sure what to do for the best. It’s time to step back and reassess, and never, ever panic!
I’m Not Panicking… But…
No. No buts. Just relax. If forex trades are becoming scarce for you, the answer is to do pretty much nothing. For now. Don’t try to force a trade by thinking that your pattern is close enough to the real thing to work because it won’t. You’ll end up losing money and losing trades and losing patience with the whole thing. And patience really is the key to all of this in the end. And of course, there must be other things you can do while you’re waiting for the real deal to come up? Things like checking out your currency watch list, working out what the current trends are in trading,scanning the markets… the list goes on and it’s a good idea to have some extra tricks up your sleeve for when you’re having a bit of a dry spell.
And If It’s A Really Long Dry Spell?
Okay, we know you can’t wait forever,otherwise what’s the point in trading in the first place – you may as well not be bothering. But when forex trades are becoming scarce, it could be time to look further afield. What do we mean by that? We mean, literally, broadening your search requirements. Only trade at a certain time of day? Why not checkout a window of time either side of that. You might come up with more usable information. The best tip to give for this is to look further away first, and then come back in otherwise you’re not really broadening your search enough.
Anything Else?
Of course! There’s always something else! When forex trades are becoming scarce, why not try a different type of trade? The patterns and pure-action trading strategy that you have put in place in the past will work as well on futures, indices, and individual stocks as it does on forex trades. But ensure that whatever you do you don’t rush headlong into a trade that doesn’t match your pattern – you’ll only regret it if you do. Wait,be patient, and know that something will happen soon.
It All Depends on How Much Work You Want To Do!
If you are happy to keep to the 10 minute a day trading strategy, even if that means that sometimes, such as when forex trades are becoming scarce, there will be days at a time when you don’t trade at all, then brilliant. Being good at trading doesn’t mean constantly trading.It doesn’t mean your position needs to be open all the time. It means you find your pattern, work out your figures, and stick to them. That’s how to be successful, even if it feels counter-intuitive to have days on end with no trades!
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Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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