BabyTrade: Don't trade during adult time

Forex Trading Nigeria

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Posted by on Thursday December 15, 2011 9:57:23:

I am thinking of writing a simple book about forex trading in Nigeria that would just help starters or freshers know the basic things about this profession.

Anyway, let's focus on the main picture here and one question comes to mind:
- Why do I keep losing money?
- Why does the market always go against me
- Why does price fall when I buy and rise when I sell?

One of the reasons why a lot of JJCs or newbies tend not to do too well in forex trading is that they don't control their risk.

Discipline is a necessary virtue as a trader and if you can't discipline yourself, you may not have much success.

There are certain things that make a baby trader not have much success in trading and some of these includes:

- Trading all the time. You don't really need to
- Bad money management.

One tip I have for baby traders is not to trade during adult time. Adult time is when the market for your paired currency is open. For instance the euro and usd are open during 8am to about 10 pm Nigerian time. These currency markets however have what we call the power hours where they both clash or are open at the same time in a period of 4hrs - around 1pm to 5pm or 2pm to 6pm(winter). During the times when the markets are open, there is rapid price movements and it can knock you out if you trade against it.
Perhaps you can learn to trade ranging prices during the asian session and these normally happens at night or in the morning before 8am Nigerian time. Price would be ranging then between 10 to 20 pips and you can use a simple strategy to get daily profits