Forex Trading: This is A War, Choose Your Side

The price of any currency in forex trading are basically on supply and demand ratio. More supply make the price going to low, and then more demand make the price going to up. This ratio is a logic way to define how the markets move. The fundamental news just a trigger that affected the market sentiment. How people reacted with this news would determine the market movement.

In my opinion the market separates by two side; the "long side" and the "short side". One of these side going to lose/win basically of their size. The bigger size of each side, the bigger of their chance to win the trade. If there is 10 lots quantity in long position and in the other side there is 5 lots quantity of short position we could conclude that the markets going to up, because the demand (long) bigger than the supply (short) value.

There is a little bit dilemma when we choose our side, and one of this side are chosen according to each of trader perception about the markets. Maybe you are questioning how to choose the better side?

I think, instead of answer this question it's would be better to know when should we enter the market? The answer makes our trading position more safely. There is a wise advice from one of the talented trader in forexfactory called as Jacko that it's better to take the position at the "round numbers" (e.g 1.2000;1.3000).

I agree with Jacko that the time to take our position is when the price is touch the "round numbers", look at the closest possible condition to take the position around this "round numbers". And make sure that you aren't take the position in the middle of the trend especially when you trading in the short term time frame. So, you have to analyze whether you make the correct decision or not.

The better side in forex trading is when you choose your position by following the market trend and don't try to against it, because it's really really risky. Jacko said the up trend is when the charts from the left bottom of your monitor move to right corner of your monitor, and if you confuse to analyze the trend just print the charts and then ask the five years old boy about the picture :D, i bet that you'll get the answer.

In the forex trading business, you war against another trader in different side/position. Then, to make you more safely in this war, you have to make sure that you are not open your position in the middle of the running trend, take your position when trend is just started...