I was just chilling and watching the market (being a medium-term trader) when I decided to pen this article. I haven't seen it all but I have been 3 years old in this game of forex. What I have discovered is that there seems to be a definite cycle to how one makes profit in this market depending on whether you trade with the trend or trade while the market is ranging as well.
This discussion would apply to the trend traders. It has always been known that for more than 70% of the time the market is always ranging (even in long term trends there are short spells of ranging data). How you manage yourself and thus your account during this ranging period would determine your ultimate success or failure in making and keeping pips.
In the picture attached one can see that the duration when one accumulates profit is much shorter than the duration used in breaking even or losing your pips. Area AB has being known to give traders a feeling of excitement and invincibility against the market whereas Area BC in some cases could make you wanna smash your computer, rip out your internet cable (for those without wireless connections) and hang yourself but you'd rather want to take it out on the market hence you challenge it (the market); these could be in the form of taking larger positions than you normally take, removing your stop losses and chanting some voodoo to move the market back in your favour, moving into a shorter time frame and starting to trade like mad, trying out another system which has more hype than results or (the safest bet) go back to demo trading!
But my dear padawan rookie, there's no need to fear because that is just the market messing with your mind...if you hold on a little while longer and stick to your method (which you had demo/paper traded for months with good results) you will soon find yourself back in the AB zone and you can start dreaming again!!!
Except you are a broker, everyone losses money in this market but with much practice you are on your way to freedom.
See you when you get there!
http://www.forexfactory.com/attachme...5&d=1263390184
This discussion would apply to the trend traders. It has always been known that for more than 70% of the time the market is always ranging (even in long term trends there are short spells of ranging data). How you manage yourself and thus your account during this ranging period would determine your ultimate success or failure in making and keeping pips.
In the picture attached one can see that the duration when one accumulates profit is much shorter than the duration used in breaking even or losing your pips. Area AB has being known to give traders a feeling of excitement and invincibility against the market whereas Area BC in some cases could make you wanna smash your computer, rip out your internet cable (for those without wireless connections) and hang yourself but you'd rather want to take it out on the market hence you challenge it (the market); these could be in the form of taking larger positions than you normally take, removing your stop losses and chanting some voodoo to move the market back in your favour, moving into a shorter time frame and starting to trade like mad, trying out another system which has more hype than results or (the safest bet) go back to demo trading!
But my dear padawan rookie, there's no need to fear because that is just the market messing with your mind...if you hold on a little while longer and stick to your method (which you had demo/paper traded for months with good results) you will soon find yourself back in the AB zone and you can start dreaming again!!!
Except you are a broker, everyone losses money in this market but with much practice you are on your way to freedom.
See you when you get there!
http://www.forexfactory.com/attachme...5&d=1263390184
Less is more...