Gaining an Edge over the Forex game of Mind, Money, & Wealth
Thursday, May 03, 2007
van Gecko 09:43 GMT May 3, 2007
Despite the recent ease in beating down the dollar, the rules of engagement for further Dollar weakness below Index 81/80 may be quite different from the previous 5 year "bear walk in the park" inside the 120/80 historical bands..
Euro & cousin GBP must maintain their recent over-shoot mode or risk "bullistic acrophobia" from multi-year heights..
As for black box trading "altering" the rules of the game.. nothing new under the sun as it had always been a part of the business.. all "black boxes" will turn into "bleak boxes" sooner or later as there's no holy grail edge in the market.. cheerios
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..
Despite the recent ease in beating down the dollar, the rules of engagement for further Dollar weakness below Index 81/80 may be quite different from the previous 5 year "bear walk in the park" inside the 120/80 historical bands..
Euro & cousin GBP must maintain their recent over-shoot mode or risk "bullistic acrophobia" from multi-year heights..
As for black box trading "altering" the rules of the game.. nothing new under the sun as it had always been a part of the business.. all "black boxes" will turn into "bleak boxes" sooner or later as there's no holy grail edge in the market.. cheerios
Labels: USD
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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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