It sure can seem like the forex market is random, can't it? And all the very smart people (who've never traded), in the universities tell us that they have proven that the market is random. Could they be wrong?
Yes.
Let's break this down. Who creates the market? Who is the market made up of? People just you and me. Yeah, that should be proof right there that the market is random. ;-)
Seriously, are you random? If you're single, what kind of people do you date? What routes do you take to work? What kind of breakfast do you usually eat?
It's actually repetitive, isn't it? When you think about it, you do many of the same things over and over. Sure, you may not do everything exactly the same all the time, but you're a creature of habit.
You can't get away from it, even in your trading. All the others trading in the market can't get away from it either.
All that said, there are times when the market truly does seem chaotic. What is happening then? Quite simply, different people are coming to different conclusions. When the market seems confused, it means the people trading it are confused. Stay out.
If traders are agreeing on the general direction, that's when you want in. Trade the way most people are trading, and you'll make money.
No, the market isn't any more random that you are random. Few yourself as a microcosm of the market at large (there's a scary though, eh? ;-)
Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
Download it free here: Forex Trading
Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide
Yes.
Let's break this down. Who creates the market? Who is the market made up of? People just you and me. Yeah, that should be proof right there that the market is random. ;-)
Seriously, are you random? If you're single, what kind of people do you date? What routes do you take to work? What kind of breakfast do you usually eat?
It's actually repetitive, isn't it? When you think about it, you do many of the same things over and over. Sure, you may not do everything exactly the same all the time, but you're a creature of habit.
You can't get away from it, even in your trading. All the others trading in the market can't get away from it either.
All that said, there are times when the market truly does seem chaotic. What is happening then? Quite simply, different people are coming to different conclusions. When the market seems confused, it means the people trading it are confused. Stay out.
If traders are agreeing on the general direction, that's when you want in. Trade the way most people are trading, and you'll make money.
No, the market isn't any more random that you are random. Few yourself as a microcosm of the market at large (there's a scary though, eh? ;-)
Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
Download it free here: Forex Trading
Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide
No comments:
Post a Comment