One of the most common situations, with which constantly has to deal any Forex trader is an unexpected and unpredictable movement of currencies prices that trigger market volatility.
Generally, professionals are generally advise not to trade during high volatility or at least to learn detailed techniques of the various options and technical analysis tools that will prevent you from serious errors.
Much of the most dramatic changes in the Forex market come suddenly and occur in the form of the enormous, incredible price movements that no one could predict. To counteract such a movement can only be the immediate withdrawal from the market.
But it is also during such movements an experienced trader can greatly increase his deposit in just a few hours or even minutes.
In order that such sudden changes in the market sentiment did not put an end to the career of a particular trader, he needs to treat very carefully what and how he is doing in his trading terminal. In particular, he should not just put stop orders, but also to learn to carefully calculate where they would have to be placed.
In addition, it is equally important to ensure that you are taking the most efficient market price. The closing order is more important than its opening and it is important not to close before it is received the biggest profit on the basis of specific calculations.
In the analysis of the market is very important to read indicators of its volatility over a period of extreme points of a movement for some period and in average.
This analysis shows that in general we can expect from the market in the new situation and to determine whether the new movement brings strong prices, which has not yet seen, or it is just a conventional small market excitement.