Hi there,
Lets continue with 'subtle' changes in our trading behavior. This is important because trading is all about how we approach it.
I am feeling good today. So I will tell you a 'SECRET'.
If you have read my previous posting, you would have read that ALL of us who step into this world of forex trading are screwed unless we wise up and use our common sense. Why? It is simple, when we step in, our behavior and subsequent actions are already 'conditioned' for us by 'MAIN STREAM'. They will share with us 'acceptable' methodology and ways. They will show you which indicators to use. How to use trendlines etc. They will tell you this is the only way you can be profitable. Everyone is using it. The 'sheep' will always listen attentively without even thinking about it. If you want examples, there are numerous on this site. Just wise up. Just know that there are many traps laid on your journey to become a successful trader. Remember, all this is a very big business. All businesses are there to make a profit. It is not setup so that you make a profit. Do not be naïve to think that they will be 'helping' you to be profitable. The Editors Pick is one example. Sheep just love it. So the 'influencer' would predict the S&P 500 will drop soon. Just as those in the past that suck up to the idea Gold/Bitcoin will shoot to the moon. Remember - avoid places where sheep flocks.
I will explain further on 'behavior'. Then I hope you really think about it.
The 'acceptable' trading method as you would all have learned from Main Stream is as follows. If you have $100 capital, only trade 2% at any one time. Use the method you learned. The key word they like to use is risk-reward, meaning it is all just PREDICTIONS. It can be right. Or it can be wrong. Always have a stop loss to protect your capital. If you want to profit, make sure your TP > SL. A 1.5x and above ratio is great. In the long run, your capital will grow.
Now, what is wrong with the above that is already shaping your perception and also your behavior? Actually 3 key points to note.
1) they are encouraging you to FEAR the market - that all this is not easy. Your trades are like hit and run guerilla warfare because this is the only way you can survive in this market. It reinforce an impression of fearing the market. If you start off having to fear the market, how can you win? For me, I only respect price. I do not fear the market.
2) There is a fine line between GAMBLING and trading. Gambling is all about prediction. Hoping for the best outcome. Their methodology is as such, if you observe carefully. So, all these while, what many had done is just gambling while calling it trading! As I said before, trading is about FACTS. Facts are things you can see, verify and quantify.
3) You are encouraged to focus SHORT TERM. Whether you are on 30M, 1H, 4H, 1D or 1W, your focus is still on the next Bar. Whether it is going to be red or green. When you focus short term, your frequency of trade is tends to go higher. So ask yourself, short term outlook plus higher trade frequency - advantage to who? - player or banker? Together with SL, your trades are always uncertain.
So how should you trade? It is easy. Focus on Long Term. Trade less, Use facts. And above all, be smart.
Now I am sure you guys know about this but haven't consider it in your trades. The MARKET decides and the FED implements. For us, it is easy, we just FOLLOW.
The above dots are the Fed quarterly dot plots, showing the tightening and loosening of monetary policy. Use it as a guide for direction - BUY or SELL. It is easy. It is based on facts because you can SEE, VERIFY and QUANTIFY the % changes from the dot-plot. No need to make any prediction. Always reliable. Once you got the direction, use VP to find the sweet spot to enter. Then you sit back and wait 3 months for the next direction, whether to hold on to your trade or whatever. Theoretically, you just need to open one trade every quarter. Do you need SL? Well, I will leave it to you to decide. See how easy things have become.
Now from the chart above, can you see PROFITS!!!
If you find this useful, please consider sharing it with others.
Thank you.
P/S : As always, do not just believe what I say. Use your common sense.
Lets continue with 'subtle' changes in our trading behavior. This is important because trading is all about how we approach it.
I am feeling good today. So I will tell you a 'SECRET'.
If you have read my previous posting, you would have read that ALL of us who step into this world of forex trading are screwed unless we wise up and use our common sense. Why? It is simple, when we step in, our behavior and subsequent actions are already 'conditioned' for us by 'MAIN STREAM'. They will share with us 'acceptable' methodology and ways. They will show you which indicators to use. How to use trendlines etc. They will tell you this is the only way you can be profitable. Everyone is using it. The 'sheep' will always listen attentively without even thinking about it. If you want examples, there are numerous on this site. Just wise up. Just know that there are many traps laid on your journey to become a successful trader. Remember, all this is a very big business. All businesses are there to make a profit. It is not setup so that you make a profit. Do not be naïve to think that they will be 'helping' you to be profitable. The Editors Pick is one example. Sheep just love it. So the 'influencer' would predict the S&P 500 will drop soon. Just as those in the past that suck up to the idea Gold/Bitcoin will shoot to the moon. Remember - avoid places where sheep flocks.
I will explain further on 'behavior'. Then I hope you really think about it.
The 'acceptable' trading method as you would all have learned from Main Stream is as follows. If you have $100 capital, only trade 2% at any one time. Use the method you learned. The key word they like to use is risk-reward, meaning it is all just PREDICTIONS. It can be right. Or it can be wrong. Always have a stop loss to protect your capital. If you want to profit, make sure your TP > SL. A 1.5x and above ratio is great. In the long run, your capital will grow.
Now, what is wrong with the above that is already shaping your perception and also your behavior? Actually 3 key points to note.
1) they are encouraging you to FEAR the market - that all this is not easy. Your trades are like hit and run guerilla warfare because this is the only way you can survive in this market. It reinforce an impression of fearing the market. If you start off having to fear the market, how can you win? For me, I only respect price. I do not fear the market.
2) There is a fine line between GAMBLING and trading. Gambling is all about prediction. Hoping for the best outcome. Their methodology is as such, if you observe carefully. So, all these while, what many had done is just gambling while calling it trading! As I said before, trading is about FACTS. Facts are things you can see, verify and quantify.
3) You are encouraged to focus SHORT TERM. Whether you are on 30M, 1H, 4H, 1D or 1W, your focus is still on the next Bar. Whether it is going to be red or green. When you focus short term, your frequency of trade is tends to go higher. So ask yourself, short term outlook plus higher trade frequency - advantage to who? - player or banker? Together with SL, your trades are always uncertain.
So how should you trade? It is easy. Focus on Long Term. Trade less, Use facts. And above all, be smart.
Now I am sure you guys know about this but haven't consider it in your trades. The MARKET decides and the FED implements. For us, it is easy, we just FOLLOW.
The above dots are the Fed quarterly dot plots, showing the tightening and loosening of monetary policy. Use it as a guide for direction - BUY or SELL. It is easy. It is based on facts because you can SEE, VERIFY and QUANTIFY the % changes from the dot-plot. No need to make any prediction. Always reliable. Once you got the direction, use VP to find the sweet spot to enter. Then you sit back and wait 3 months for the next direction, whether to hold on to your trade or whatever. Theoretically, you just need to open one trade every quarter. Do you need SL? Well, I will leave it to you to decide. See how easy things have become.
Now from the chart above, can you see PROFITS!!!
If you find this useful, please consider sharing it with others.
Thank you.
P/S : As always, do not just believe what I say. Use your common sense.
Note
In a few hours time, FOMC will release the dot-plot.A 50 bps hike is certain. But if it comes in at 75 or 100 bps, then expect US$ to rise. Also, the Fed may announce an increase in the number of expected rate hikes in the coming months.
If both of these happen, expect US$ to move up - violently.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.