Even the most experienced and successful forex broker in Thailand goes through that moment where he enters a trade and thinks he’s prepared for everything only to be blindsided by an unexpected event. This is what they called ambush forex markets.
However, you need not worry about this scenario too much because these successful forex brokers also go through these. In fact, this is considered an everyday occurrence in the market.
How to Avoid Forex Market Ambush?
There’s no real way to avoid forex market ambush. However, you can avoid getting trapped in it. It is important to keep in mind that how you react to these unexpected scenarios is what separates you from the rest.
Making calculated decisions and having a quick-thinking mind are the skills you need to have in order to face these kinds of scenarios. Especially because your money is on the line. Of course, it would be impossible to set your mind to not react with shock or fear if you would just study the charts alone. For you to get used to responding well to unexpected events, the first thing that you need to do is expect them. You should always expect the worst.
In forex trading, these unexpected scenarios could happen with a blink of the eye. Suppose you just made your trades before an economic report is released and then all of a sudden, that report was leaked where forex price action could go crazy, enough to trigger changes to the trades you made. Since this is an unexpected thing, you wouldn’t promptly know how to react and you wouldn’t have an instant idea of how you’ll manage your trade correctly.
These unexpected scenarios tend to affect our decision-making process with the element of surprise and speed which can cripple your judgment and planning. Yes, it is not possible to predict all the possible forex market scenarios and know instantly how to react to them. However, having the OODA mindset (observation, orientation, decision, and action) would help you figure out how to react to the possibilities of what may happen and determine your next course of action.
Do you know the lines of Forrest Gump form the movie with the same title which says, “My mom always said life was like a box of chocolates. You never know what you’re gonna get.” Trading is like this saying too because it could give some wild swings here and there.
What’s most important is understanding damage control. Of course, a wise forex broker Thailand would expect an unexpected scenario that may potentially screw up his trade, but if he thinks about how he can manage his risk is key. Now, if you are unable to determine the current potential changes in the market, then it is better to minimize your losses instead of hoping that the trade flow would still go in your favor. Forex trading is not just about winning, it is also about understanding your losses and cutting them short.