Drawdown is a usual process during trading that you can avoid if only you find the perfect entry point. As you know, it is almost impossible. That's why professionals easily overcome drawdowns by determining the max drawdown they can allow and building their trading strategy that helps to enter the market near the optimal entry points.
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How often do you encounter low market activity in the financial markets? Low trading volume is a situation in the financial markets where the number of contracts being traded is relatively low, and it indicates a lack of interest among live day traders.
In the previous article, we’ve learned about the concept of correlation. It's time to apply it in trading. You don't need any special skills for this. Once you understand how correlation works, you can put your knowledge into practice, even as a novice trader.
Everything is interconnected in the currency market. Changes in major indicators for one currency affect several trading instruments at once. Moreover, price fluctuations in one currency pair can influence another instrument. These connections are called correlation.
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