Dislikedlet's talk about trend you have 10k to invest on GU for 5years from now you are to enter 1 trade and hold it for 5years which direction would you go for at the price of 1.25 long 1.25 or short 1.25 for 5yearsIgnored
✓ Swap will take 30% of the profit off, that's if there will be tangible profit at all... (Except a swap free account is used)
✓ The exchange rate will keep roaming between 1.50 to 1.15 within this 5 years period and there is a chance that at the end of that 5 years, price may still be trading at 1.25 which may be a total waste of time.
Data + Stat + Risk/Emotions Management
4
. All they do is entice you to buy, thats it. Do you see how GU has went 90 pips down today? How do they do that? Slow and steady. I have said this a number of times. The real forex move is slow, steady and relentless. It keeps going on and on. It may stop for a while to make you think, or there is support maybe it will hold, after an hour or two, price just goes through. You draw a fib and say maybe it will provide support, price still goes through. Eventually you think, ok I will be a swing trader/position trader and hold for a while, before you know it you blow your account because your margin levels cannot sustain the move anymore. Trade what you see not what you think will happen. Market makers create a sentiment and then they trade against it. They say things like, ohh GBP has been falling, its going to reverse and rise, every article you see will say that, even on your broker's data, you will see 73% are in buy positions and 27% are in sell positions. and then guess what happens, price still plummets down. why? Because the whole business is about the money. We don't care about losing money to the 27% who are selling, why???? Because if we continue selling, we will hit the stops of the 73% who are buying and while we lose 27% we still pocket the 73%. Think about these things guys, don't just look at your chart and say price will reverse there because there is a weekly resistance running from November 2015, its all a marketing ploy to get you to commit your funds. Think about this, your chart was clear the first time you loaded it, it was clean and all you saw was candles. You are the one who drew that support, in simpler terms, you are the one imposing that upon the chart. So what makes you think you are so great that the same support you drew with you very own hand will hold? Are you a market maker? Of course not! Green pips all
In the end you become what everyone wants to become, a disciplined trader except that in reality you are nothing much but a disciplined losing trader.