Forex trading is a damn risky business. Many people have went from millionaires to homeless in less than days trading the markets. And this week, aside from upping my equity to another 13.06%, I learned that it pays to be calm and collected when your trades goes against you. It is a must that you believe that you can not control the market. And you do not own the market. The market does not need anything from you, that is why, you don’t need to expect anything from the it. It is you, who needs money from the market. A place of unlimited wealth. So do not get angry if your trades goes against you. Always remember that you are in this, to get money. Why would you be angry if you lose money?
Many systems and techniques are there for the taking, but I will be bold enough to say that all of these systems DOES NOT WORK 100%. They can not predict market movements, they can not predict when the trend will start, stop or reverse. It has been a perversion of many people to control things and the market is one of those things that they can not control. You may hear alot of conspiracy theories, from your friend stock trader’s stories of why the stock will go up or news flash from your commodity trader friend, but all these are just odds and percentages that your decision might be right or wrong. But still you can not predict it.
Thinking that you can predict the market is all BULL CRAP! Here’s why.
What makes the price go up or go down? If many people buy, certainly, the price will go up. If many people sell / short, the price will go down. Let’s say you are a technical analysts who spends a lof of time drawing trendlines, graphs, fibonacci retracements and then finally you decided you wanted to buy and calls it a day, after drawing the hell out of the graph and make it look like a renaissance painting. Then you woke up the next morning seeing you are down 10%. Why?? Why is it wrong? You continue to ask yourself. “I spent the whole fucking day analyzing this god damn chart!”.
My friend, never fear, all those technical traders forgot to tell is that, not all elements in price action are included in the chart. Elements that can affect the price movement greatly, but are not included in the charts. And I’m here to tell you just that. Why? Because we’re friends.
Price, reacts to supply and demand and is reflected on the price chart. May it be candle stick or bar chart. “Yeah, so what? We already know that!” Well, do you also know when the other investors, traders that are on the sideline, will join the trade? How many of them will go against you? How many traders will get out? Most importantly, how many institutional traders will join in and trade with or against your position.
You can not see all of these in a chart. And you can not control it. So why bother?