Eye witness in online forex trading – trade in right time

Forex Trading Rules: Being Right but Being Early Simply Means That You Are Wrong
Whenever anyone wants a proof so the written one is being asked to present, and if it isn’t available then eye witness is the next option. This is because what eyes see can’t be a lie so eyes always speak the truth. In case of forex market, if the currency pair of a trader is short and all the prices are moving opposite to his position, so in this case trader is at the wrong direction. He first needs to accept the situation and look forward to solutions.
Analysis of the EUR/USD 2004/2005
In the forex world, trends can go too far as one can imagine. For example, in the way back 2004, EUR/USD currency pairs kept on rising from a very position which was 1.2000 to 1.3600 points for almost two months. When traders were looking at this position, they had no clue about this change, but still many were saying that it is due to the strong position of the dollar.
It can be true, at that time U.S was facing probably the worst trade deficit. Still, she managed to attract a handful of capital, especially from the Asia. Additionally, the overall economic growth of U.S was far better than of Eurozone at that time. Due to high economic growth, the GDP was floating at 3.5% annually whereas it was just 1% in the Eurozone. The U.S is going for a step ahead, and they are raising interest rates so it would equal to the interest rates of a greenback and the euro. Additionally, the exchange rate of euro is about to go strangle for its exports. The exports are one big portion of the European economy which is very important. As a result of all this, the employment rate in U.S is decreasing and from 5.7% it has decreased to the 5.2%. However, in Eurozone, the employment rate of Germany has crossed to double figures.
Imagine a position where you held a short position and then let it go.
If this was the case with you, then the dollar which was showing bullish trend will help to sell the pair EUR/USD. As a result, your selected player did turn around for the whole year 2004, and it managed to reach a low position of 1.1730 in 2005. Here, just imagine a situation where a trader decided to short of 1.3000. Is it possible for him to stand for another 600 points? Imagine another worst-case scenario where another trader decided to short of 1.2500 at the end of year 2004. Now was it possible for the trader to bear the loss of 1100 points?
The drop scene of this issue is that if both could have waited, there were chances that their trading ended in profit. Although they were moving on the right track, but the only problem was that they were in a hurry. Unfortunately, in the forex market even very close is not equal to the finish line.
Right time with the right place
In the forex market, being on the right place is not enough if it’s not on the right time. This is the reason “eye witness” is really an important factor in trading. Try to make a modest stop even if price is moving against you. In the forex market, being early suggest that you are going in the wrong direction.