Currently, the market is moving upwards quickly. But many people do not believe in this increase. Why? Because the market has been moving sideways for many weeks. Every time it tried to rise, it fell back down. Traders have become accustomed to this pattern.
So now that the market has finally started to break out, people still think it’s a trap. They are shorting (betting against the market), expecting it to drop again as it did before. But this time, it’s different.
This is where market makers intervene. They use the disbelief and fear of individual traders (regular people like us) to create pressure. When many people short, and the price keeps rising, those who are short are forced to buy back – leading to larger upward movements.
This is how smart money wins. They follow the trend while others resist it.
How to win in this type of market
1. Follow the trend, do not resist it
If the price is making higher highs and higher lows, this is an uptrend. Do not bet against it.
2. Use breakouts and retests
When the currency breaks resistance, wait for a small pullback (retest) and then buy. This is safer than chasing the peak.
3. Buy strong currencies with high trading volume
Focus on currencies that have momentum and real volume. They move faster and are safer to trade in upward trends.
How to protect your assets
1. Always use stop-loss
This protects your money if the market reverses against you. Do not trade without it.
2. Take profits on the way up
Do not wait for the perfect peak. Take profits in parts as the price rises. Leave a small portion to continue.
3. Don’t go all in
Do not invest everything at once. Use only a portion of your capital in each trade to avoid large losses.
4. Avoid emotional trading
Do not let fear or greed control you. Follow your plan, not your emotions.
In short:
The market is changing quickly. You must change your mindset with it. Instead of resisting the trend, follow it wisely. The goal is simple: to achieve steady profits and protect your capital.