Reasons Traders Miss Big Market Moves, Why Trade Forex Over Futures? What Is Volume and Why Does It Matter in Trading?

Happy Sunday,

Welcome to this week’s edition! We’ve packed it with valuable insights to help you grow as a trader. This week, we’re uncovering why traders often miss big market moves and how to avoid those costly mistakes, diving into the key advantages of trading forex over futures, and breaking down the role of volume in trading and why it matters more than you might think

This week’s edition:

🧠 Reasons Traders Miss Big Market Moves

📈 Why Trade Forex Over Futures?

🚀 What Is Volume and Why Does It Matter in Trading?

3 Common Reasons Traders Miss Big Market Moves

Ever looked back and wondered why you didn’t catch a big breakout or trend reversal? You’re not alone. Strong moves don’t happen every day, and when they do, being ready makes all the difference.

Here are three reasons traders often miss out and how to avoid them:

1. Too Zoomed In

Focusing only on your current trade can make you blind to larger trends. It’s easy to obsess over pip counts or missed entries, but the real pros zoom out and look at the bigger picture. When a major event moves the market, shift your mindset from short-term reaction to long-term opportunity.

2. No Game Plan

If you don’t have a strategy for breakouts or reversals, you’ll likely freeze or enter late. Trend-following is great, but markets don’t always trend. Try exploring other methods like breakout or reversal setups through forums, mentors, or educational resources.

3. Bias Overload

Sometimes, we’re so convinced we’re right that we ignore signs telling us otherwise. Sticking to a losing position just to “prove” your idea correct can drain your account. Be flexible. A strong trader knows when to pivot.

How to Get Better

Stay current with market news and always build backup plans. Ask yourself, “What if price moves faster than expected?” or “What if it reverses?” Preparing for multiple scenarios keeps your mind flexible and boosts confidence.

Missing major moves doesn’t mean you’ve failed, but learning to spot and act on them is what separates good traders from great ones.

Why Trade Forex Over Futures?

If you're choosing between forex and futures trading, it's worth knowing what sets them apart. Both have their pros and cons, but forex stands out in a few key areas.

1. Around-the-Clock Access

Forex is a true 24-hour market. From Sunday evening to Friday, you can trade any time, morning, night, or mid-day. Futures have set hours and thinner overnight markets, which can limit your flexibility.

2. Massive Liquidity

Over $7 trillion is traded daily in forex. That means tighter spreads, faster execution, and easier entries and exits. Futures markets vary, some are liquid, others less so.

3. Higher Leverage

Forex offers high leverage, sometimes up to 500:1, letting you control large trades with small capital. Futures offer leverage too, but it’s usually around 20:1. Just remember leverage can amplify gains and losses.

4. Lower Costs

Most forex brokers don’t charge commissions. Instead, they make money through small markups in the bid-ask spread. Futures traders often face commission fees, exchange costs, and clearing charges.

5. Price Certainty & Risk Control

In forex, trades are usually executed instantly at the quoted price. Risk is managed with built-in margin calls to avoid deeper losses. Futures trading can have delays in execution, and you could owe more than your balance if a trade goes wrong.

6. Regulation

Forex is decentralized and lightly regulated, which means flexibility but less oversight. Futures are tightly regulated with standardized contracts, offering more transparency.

Bottom Line:

Forex gives you flexibility, liquidity, and cost advantages. If you're looking for a fast-moving, accessible market with high leverage potential, forex might be your best choice.

What Is Volume and Why Does It Matter in Trading?

Volume tells us how much of an asset is being traded over a specific period whether it’s stocks, forex, futures, or commodities. Simply put, it's the total number of units exchanged between buyers and sellers.

High volume usually means a market is active and liquid. It often goes hand-in-hand with big price movements, making it a useful tool for spotting trading opportunities.

But here’s the catch: volume measures how much is traded not how many trades happen. So whether one person buys 100 shares or 100 people each buy one, the volume is the same.

In technical analysis, volume acts as a confirmation tool. A price trend backed by strong volume is seen as more reliable. Low volume? That trend might not have staying power.

Here’s how traders use volume:

• Confirm price trends and chart patterns

• Spot potential reversals

• Judge the strength of breakouts

A common belief: volume precedes price. If volume drops during an uptrend, it might be losing steam. Or if a breakout happens without volume support, it could be a false signal.

Forex and the Volume Challenge

Unlike stocks, the forex market doesn’t have a central exchange. This makes it hard to track true volume. Instead, traders use tools like tick volume (price changes per tick) as a proxy.

Despite this challenge, understanding how volume interacts with price can give traders a valuable edge. Whether you’re watching for breakouts or trend shifts, volume adds crucial context to your analysis.