Gaining an Edge over the Forex game of Mind, Money, & Wealth
Thursday, December 28, 2006
la oleg 16:07 GMT December 27, 2006
never let the facts get in the way of a good story:
"In other words, just as the dollar was falling at its most rapid rate in 2003 and 2004, and just as the world turned ultra-bearish on the dollar and began to talk about the risk of central bank diversification, central banks were actually doing the opposite: buying a massive amount of dollars to offset the price effect."
highly recommended reading: morgan stanley
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..
never let the facts get in the way of a good story:
"In other words, just as the dollar was falling at its most rapid rate in 2003 and 2004, and just as the world turned ultra-bearish on the dollar and began to talk about the risk of central bank diversification, central banks were actually doing the opposite: buying a massive amount of dollars to offset the price effect."
highly recommended reading: morgan stanley
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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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