The third lesson:Trading game of anticipation, not reaction
Everyone wants to get the most money match time spent at work, and trading is not much different, we also want to get as much money as possible against the limited time that we spend in the market every day.
Unfortunately, most investors lose much of their money because they don’t understand how to use time in the correct format in the market.
So, how do you get the most out of time analysis and trading in your market? For many investors, it is quite natural to believe that whenever we spent more time inside the market, become a better chance to make more money.
However, I will proved you during today’s article that this belief is incorrect, and should earn more money into markets depends on how your harmony and interact with market dynamics and learn to expect high probability trading scenarios.
This is how you can get as much money as possible for the time you spend in the market. “Give me six hours to cut the tree and I’ll spend the first four sharpening the axe” Abraham Lincoln I’ve recently written an article dealing with the development of routine daily trading, which discussed the importance of holding weekly and daily market analysis in a structured and systematic way.
Many investors just wake up every day, go immediately to search for market entry signal randomly too.
Instead, when you sit at a computer to analyze the market, you should already have an idea of where you are looking for signals and what markets to trade.
For example, in the graph below, we analyzed the market and we found the most cluttered areas to search Beck, now we just need to wait time, wait with patience for any signal in the area, which are watching very. This, we expect snario market through analysis of dynamic graph, and select areas in the market and find the main trading areas, in addition to the events of price movement
In the graph below of the pair USD/JPY, we expect a reference buying price movement composed after the undo support. Note that we had to wait for a week or two of this reference, but it made a big step in this direction, which means that it’s worth the wait.
In fact, many investors use the histogram to shortterm time frames instead of waiting for this, and this leads to consistently lose money. Instead, they can only keep the risk and capital markets every day, and the patience to buy signal support.
It is very important to understand the roles played by anticipation and reaction in trading within the market. Generally, you can describe the anticipation that the function of the brain to predict future events, while more primitive reflexes.
Through my experience, many investors in the market is very busy in the reaction of markets which does not allow them to obtain sufficient time to develop a plan and see what the trading market. The people who interact with the market largely based on reaction, usually lose a lot of money. While investors who are waiting can marketevents dominate the market.
To illustrate how excitedly trading deals Looking at the daily chart of the s &; p 500 index for the United States. The areas of 1660 and 1670 shows areas of high probability to see signs the sale price movement.
We can draw this conclusion on the basis that there were events at this level, and performed a large downward movements.
So, we know that there is great importance for sale when this resistance. Note about the watching trading: the market does what we always expect to do. It won’t move the market always in areas of high probability that you highlighted in your graphs ,But sometimes will do, and then you’ll be ready and confident, and this is the most important point.
They excitedly trading means that you have a plan of action for how you will react if something occurred within the market.
We are looking at a weekly chart of the GBPUSD, through analysis of the weekly time frame, maintain discipline and patience in the analysis, we can use it as a guide for the anticipation and expectation of daily trading deals and 4 hours.
The following is an example alasboab graph, and use to select and watch for daily trading signals and 4 hours: Why you need to learn to watch for trades Think of the iPhone or iPad to a minute. It is known that Apple has become the most valuable among u.s. companies, but what you may not know is that Apple’s founder, Steve jobs, someone was very proactive.
Mr. jobs predicted what he wanted, and this led to the fact that Apple electronics are our favorites now, as a result of the jobs forecast for what he loves and needs of the people. In fact, most of the good ideas don’t come in for awhile, but require time and planning, reflection and anticipation. For investors in the Forex, it is very important to recognize the fact that anticipation is the key element behind any big success story in the field.
Quite simply, we need planning, anticipation and then pull the trigger once to just to achieve the standards we market.
The end of the third lesson
Trading game of anticipation, not reaction
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