Trading Environment

[ForexArticles]

When two people go to war, the foolish man always rushes blindly into battle without a plan, much like a starving man at his favorite buffet spot.

The wise man, on the other hand, will always get a situation report first to know the surrounding conditions that could affect how the battle plays out.

Know Your Forex Trading Environment

Like in warfare, we must also get a situation report on trading environment. This means we need to know what kind of market environment we are actually in. Some forex traders cry saying that their system sucks.

Sometimes the system does in fact…suck. Other times, the system is potentially profitable, but it is being utilized in the wrong trading environment.

Seasoned forex traders try to figure out the appropriate strategy for the current market environment they are trading in.

Is it time to bust out those Fibs and look for retracements? Or are ranges holding?

Just as the coach comes up with different plays for particular situations or opponents, you should also be able to decide which strategy to use depending on trading environment.


By knowing what market environment we are trading in, we can choose a trend-based strategy in a trending market or a range-bound strategy in a ranging market.

Are you worried about not getting to use your beastly range-bound strategy? How about your Bring-Home-Da-Bacon trend-based system?

Have no fear!

The forex market provides many trending and ranging opportunities across different time frames wherein these strategies can be implemented.

By knowing which strategies are appropriate, you will find it easier to figure out which indicators to pull out from your forex toolbox.

For instance, Fibs and trend lines are useful in trending markets while pivot points, support and resistance levels are helpful when the market is ranging.

Before spotting those opportunities, you have to be able to determine the trading environment. The state of the market can be classified into three scenarios:

• Trending up
• Trending down
• Ranging

[DirkNannes]

Yes, a good trading environment is very important for traders. In addition, good trading environment means enough facilities for complete our trade smoothly without any requoes and slippage. In addition, traders can enjoy their trading life if they use regulated trading platform. Because, only regulated trading broker can provides best trading environment for trading. So, I use TradingBanks trading broker from my first day of trading because quickest trading software of TradingBanks always supplies excellent trading feature. My all trading order is accepted instantly without any slippage. So, I feel most protected trading environment that I use.

[vic84]

Although trading can be done from any where but its better to trade in a environment where you can fully concentrate or where a group of trader are trading, in this way you can learn fast.

[DirkNannes]

Trading environment is very important trading material for making profit by using any trading strategy. In my trading life, I have selected GCI as my best trading place where I am getting very narrowest trading spread which is very supportive to make profit by using any kinds trading strategy. Actually, this ECN trading place always make sure best trading environment especially for scalping by providing only one pip trading spread. So, it is possible to me to make profit by using my short time trading policy. And, my trading life is very comfort and profitable.