Forex gold trading chasing orders is not terrible, what is terrible is that traders blindly chase orders

Chasing orders is a method often used by foreign exchange and gold traders to make orders. It refers to making orders in the direction of price fluctuations at the beginning of the market and completing the transaction in a short period of time. This method is generally used to recover losses or expand profits. When traders make profits, they feel that the following market trends are in line with their own judgment, and then chase orders to get more profits. Under normal circumstances, profit chasing orders is possible, as long as they do not blindly add funds. When investors have lost money, they will also be troubled whether to chase orders. On the one hand, they are worried that if they chase orders again, they may lose money. However, if they do not chase orders, they feel a little regretful, because it is very likely to recover losses immediately.

Since chasing orders is often done when the price fluctuates violently, there are great risks involved. If the operation is not correct, it is easy to cause losses in a short period of time. It is not uncommon for people to chase orders in the trading market, but most of them come back with a loss, and it is rare to win a big victory. Indeed, once the pursuit of orders is not well grasped, the loss is a small matter, and the heavy one may directly make the account lose its trading ability. Therefore, we often hear warm advice from friends and even our own hearts: control yourself and don't chase orders. But in actual trading, you will find that when many markets really face a qualitative turn, it often does not give you too much time to get on the bus. If you want to demand perfection, perhaps until the entire market is over, traders may miss it perfectly in the thinking of "entering the market after a correction".

We certainly know that there is no market that never corrects, we certainly know that there are opportunities every day, and we are not in a hurry for a moment. We also know that improper operation of chasing a single may cause the account to face greater losses. But if similar perfect misses occur repeatedly in trading, it is easy to affect the trader's mentality and trading rhythm. This is also an objective fact that traders should face up to. You can't say that because this mentality is wrong, you have to oppose it. It is said that trading is anti-human, but many times you will find that the more opposed some people are, the easier it is to jump out and make trouble with you at critical moments. Therefore, the way to persuade human nature is not to rely solely on suppression, but to let the backlog of emotions find an outlet to release. The same is true of chasing orders. We must not completely eliminate it because it is aggressive and may bring risks. In fact, chasing orders itself is not terrible. What is terrible is blindly chasing orders.

Only those in line with the original trend direction will follow

We just said that many times the market starts suddenly, and its fluctuation may be greater than usual, which often does not give us too many opportunities to enter the market, but it does not mean that you have to catch up when you see a big fluctuation. Traders need to realize that even if the actual market is often sudden, before the market starts, you always need to analyze and anticipate the overall running law, what is the next high probability direction of the market, what kind of basis, etc., traders must have a plan and preparation. When the market suddenly starts quickly, the direction of running is in line with the direction you originally anticipated, which is the basis for reaching the conditions for chasing orders, otherwise it is called panic. If the direction of the market fluctuations is opposite to yours, even if there is a big market, you should know that this is not in line with your expectations and exceeds your trading plan. At this time, what is needed is not profit, but caution.

Only the market that meets profit expectations will follow

Chasing an order originally means that the risk of uncertainty may be greater than that of the usual trader, so let alone the final result, but at least before entering the market, traders must be able to see a reasonable profit expectation. Under normal circumstances, the market can only further open the follow-up space when the band has just risen or after the structural break. This is another condition that chasing an order should meet. You can't say that because the market fluctuates greatly, but there are still more than a dozen points to reach the key support resistance level and rush to catch up, which becomes a hunger.

Coordination in time and space or striving for victory in chasing orders

As we all know, in the first half of the European and US market time, it is generally the most active time for international main funds to trade. If the start of a market occurs during these time periods, it is often easier to succeed due to the relatively concentrated chips, which may also lead to more opportunities for chasing orders. In addition, traders can also pay attention to the daily volatility that has been generated by the market before chasing orders. For example, under normal circumstances, the intraday volatility of gold may be around 150-200 points. If the market suddenly starts, and the intraday volatility is only within 100 points at this time, it means that even if the intraday volatility does not exceed the regular operation, traders still have a large profit margin. On the contrary, when the market is approaching the end of the session and spatially close to the level of normal volatility, unless there is obvious fundamental resistance, this may not be an appropriate time to chase orders.

Precautions for tracking entry and stop loss exit

The word "chase" for chasing orders seems to be a kind of eager psychology, but it is very dangerous for traders to really understand it as eager. Since ancient times, it has been impossible to eat hot tofu in a hurry, and it is almost impossible to do a good job in a hurry, so even if it is urgent, the necessary waiting and confirmation are still indispensable. Whether it is to break the position to chase orders or to chase orders in the early stage of the market start, you should enter the market after the K-line closes, such as paying attention to 30 minutes and 1 hour.

In addition, the setting of stop loss is a major key in chasing orders. Under normal circumstances, if a single order is described as chasing, it is highly likely that a better entry point has been missed. Therefore, stop loss is also doomed to be impossible according to the previous stop loss level. Otherwise, you will find that the stop loss space is not so easy to bear. At this time, it is very important to pay attention to the starting point of the market. Traders can observe the obvious starting point of the market in 5 minutes, or use the 30-minute starting K line to find stop loss points. This logic is that if the market does not continue to exert force at this starting point and retrace the starting point, it is also because this chasing order has lost its significance and should leave the market in time.