The crowd always assumes that simple things never work. Only complicated things can bring profits. That’s completely wrong and it’s hard for me to accept. Through this Friday trading strategy review article, they will have to look at the problem objectively when a simple trading strategy does not mean it is ineffective.
Once you’ve experienced enough in this market, minimalism will be what you aim for. Stay simple to easily seize the opportunity to make a profit. Complicating things without making a profit is just useless. Be pragmatic if you want to be a successful trader.
How to trade against the crowd
The concept of a crowd in the market has long been known to traders. For many, it is a symbol of ineffective and wrong trading decisions. If you find yourself part of the crowd, it’s time for you to leave it to choose your own path.
What can you do when you don’t have a lot of skills but still want to leave this nasty community right away? Let’s start with these two specific rules:
Don’t make trading decisions at times of high volatility.
Moments of unusually high volatility are the most exciting situations in the market. This is when the asset determines the trend. Traders lose money due to the instability of the trend. Usually, volatility occurs at the time of news release. It could be an economic calendar update or unexpected news.
The break of a key level also leads to increased volatility. These points will play a strategic role in the asset you are trading. The exchange rate of the currency pairs fluctuates the most in the first 5-10 minutes since the beginning of the crossover between the two sessions, which are usually the European and American sessions. Often, experienced investors will limit their entry at those sensitive times.
To stay calm and not succumb to price provocations, avoid trading during news releases. This does not mean that you should forget to trade but come back to look for opportunities at another time.
Trading when the market “calms down” is the best way
When the market is no longer affected by the news, it is time to go back to looking for opportunities. Since the price is no longer volatile, the crowd is not amused by waiting too long for their trades to reach the desired profit. And you don’t have to be like them to make money fast and lose money fast too. Prices may move slowly but they are in your control.
The crowd enjoys watching the number in the account dancing wildly after entering the order. Then, everything gets out of control and burns the account quickly. When emotions have exploded, the more you lose and want revenge, the more you will lose.
Separating from the crowd will help you have an overall view of the market. This is to make rational trading decisions using technical and fundamental analysis. That’s how you get out of the losing group and into the profitable one.
Review the Friday trading strategy in Olymp Trade on May 18, 2021
A 1-minute candlestick chart. The expiration time of 3 minutes.
Balanced investment ($100 each).
EUR/USD currency pair.
The Friday trading strategy.
1st order: At the EUR/USD currency pair in the European session, the price was moving sideways slowly. Suddenly, the price created a strong bearish candle, pulling EMA5 to cut EMA13 and EMA55 from above. That is the signal to open a safe DOWN order according to the Friday trading strategy.
2nd order: EUR/USD was trending down when EMA5 crossed EMA13 and EMA55. It was a sign that the downtrend would continue in the near term. Opened a LOWER order with an expiration time of 3 minutes for $100.
3rd order: The price of the EUR/USD currency pair started to rise again when many green candles appeared in a row. At the same time, EMA5 crossed EMA13 and EMA55 from below. It was eligible to open a DOWN order according to the Friday trading strategy.
4th order: A reversal point appeared at the EUR/USD currency pair. EMA5 crossed EMA13 and EMA55 from above. At that time, I opened a DOWN order safely.
5th order: The price of EUR/USD created a reversal point from bullish to bearish. EMA5 decisively crossed EMA13 and EMA55 from above. Opened a LOWER order with an expiration time of 3 minutes right there.
In just one day, May 8, there were many trading orders opened with the Friday trading strategy. You have many opportunities to increase the amount of money in your account. But first, it is necessary to practice it on a Demo account seriously before trading for real.
It will help you better understand how to trade and choose for yourself the nice entry points with the highest probability of winning (like I did in the review). Making money in a simple way in Olymp Trade is something that only the Friday trading strategy brings to investors.