My Top 20 Online Trading Currency Pitfalls (EMBARRASSING!)

13: Not Adapting to Changing Market Conditions

Market conditions are always changing, which means your trading approach needs to be flexible, too.

Trends give way to consolidation ranges, and breakouts from ranges may lead to new trends.

Stay flexible with your trading approach by first evaluating overall market conditions in terms of trends or ranges.

If a trending move is under way, using a range-trading style won’t work, just as a trend-following approach will fail in a range-bound market. Use technical analysis to highlight whether range or trending conditions prevail.

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