You should know the very moves of your opponent better than your trading style. It may sound surprising to you but it is true. When you start your trading, you are not only risking your money but you are also playing against thousands of players. They are not going to give you a chance and it would be helpful for you if you know their moves in advance. Many people only focus on their strong knowledge and skill but do not have an idea of what skills other people may have. As you keep trading, your eyes get opened and you realize how good they are. This article will explain the importance of knowing the opponent to plan your strategy in advance. A wise man once said to keep our enemy closer than our friends. It is those people who are trying to hurt us but the friends will always stay with us when we need them. Having a better insight into their tricks and their plans is going to give you an advantage that you can certainly use in your career.
Education is your greatest opponent
Do you know the majority of the traders don’t have any clear clue regarding this trading industry? They are just placing random trades without knowing the risk factors. If you believe trading is the perfect profession for you, you must work hard to learn the details of this market. Things might be a little bit difficult at the initial stage but if you seek help from the professional investors in the United Kingdom you can easily learn lots of new things.
So how do become an educated person in the retail trading industry? The answer is really simple. Start learning the details from the scratch. Try to find profitable trades in your trading platform and trade with low-risk exposure. If you can manage your risk properly you can easily make tons of money.
How can the opponent affect your profit?
You must be wondering and thinking about how these people can affect the profit that you make. When you place trades, you compete for a small profit that is going to be rewarded even to a smaller group of traders. They are the professionals and the hardworking traders. You can have the profit if you work hard but to do that you have to first lose the opponent in the battle. When you apply for a scholarship to a renowned university, you are not the only student who is applying. Thousands of students from around the world apply and only to the best, the scholarship is awarded. You take preparation in your student life to compete with these students and you try to build up yourself like one of them. The opponents also take months of preparation before they start trading and they take the share of your profit. If there is only 100 dollar profit in a trend, you need to make sure that you got a share from it. As the opponents use strategies and plans, the chances of getting the money in your account get slimmer. They are biggest obstacles in your career development. They contribute to the market growth by depositing money and at the same time compete against traders to win their money back.
Knowing their moves in advance help you to design a counterstrategy, just like in a war
It is one of the reasons the professionals never go for the obvious trades. They know what the novice people are going for and they hold onto their trades. When people do not trade, they place their trades and exit the market with a profit. If you know what they are planning, you can develop a counter plan to back up your money. This counter plan works as a miracle as it is going to be used against them. Consider Forex as a war zone and you will know the answer.