Gaining an Edge over the Forex game of Mind, Money, & Wealth
Sunday, March 21, 2004
S&P 500
The daily chart is now painting a mid term 'Triple Top' formation with the Index's repeated failures ahead of the 1170 multi-year resistance over the last few weeks..
Consecutive weekly closes below the critical 1130 support had tilted the odd for more retracements down to the 1050/60 levels before any substantial rallies above 1160/70..
The Dow breaking below 10500 had tilted the odd for another 1000 point correction down to the 9500/600's..
Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytic & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band in-order to compensate for those times when we are wrong..
The daily chart is now painting a mid term 'Triple Top' formation with the Index's repeated failures ahead of the 1170 multi-year resistance over the last few weeks..
Consecutive weekly closes below the critical 1130 support had tilted the odd for more retracements down to the 1050/60 levels before any substantial rallies above 1160/70..
The Dow breaking below 10500 had tilted the odd for another 1000 point correction down to the 9500/600's..
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Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytic & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band in-order to compensate for those times when we are wrong..
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