Gone with the wind? Have you ever wondered about the reliability of these so called trading instruments, tools, and indicators (stochastics, emas, mvas, etc.)? These tools are nothing more than simple indicators used to help predict the movement, or change in direction of the price.
A weatherman uses similar tools to predict the weather. And that is essentially what a trader is doing as well. You can't very well predict the random changess in the direction of the wind as you can with the direction of the price. Sure a weatherman can predict stormy weather. As a trader can predict a coming price movement or reversal. However, how many times has that weather prediction been wrong? Even if it was predicted accurately, I'm sure the timing was a bit off. And in the world of Forex trading, timing is key.
Look at it this way. You are standing outside, and it is very windy. The wind is blowing from all different directions: one moment its hitting from the north, then it changes to coming from the south. Simply random gusts of wind that you are feeling. I'd like to meet a meteorologist that can tell me what way the wind will be blowing at any given second. The truth is, no one can predict the random directions of a gust of wind, no more than one can predict the random directions of price "noise" in a currency pair.
My point is this: quit trying to play weatherman. You must simply go with the wind. Meaning that, trade with the wind, or the movement in the price, rather than against it. Keeping it all simple is key to success. Anything in life can be made easy, you simply have to make it easy.
A weatherman uses similar tools to predict the weather. And that is essentially what a trader is doing as well. You can't very well predict the random changess in the direction of the wind as you can with the direction of the price. Sure a weatherman can predict stormy weather. As a trader can predict a coming price movement or reversal. However, how many times has that weather prediction been wrong? Even if it was predicted accurately, I'm sure the timing was a bit off. And in the world of Forex trading, timing is key.
Look at it this way. You are standing outside, and it is very windy. The wind is blowing from all different directions: one moment its hitting from the north, then it changes to coming from the south. Simply random gusts of wind that you are feeling. I'd like to meet a meteorologist that can tell me what way the wind will be blowing at any given second. The truth is, no one can predict the random directions of a gust of wind, no more than one can predict the random directions of price "noise" in a currency pair.
My point is this: quit trying to play weatherman. You must simply go with the wind. Meaning that, trade with the wind, or the movement in the price, rather than against it. Keeping it all simple is key to success. Anything in life can be made easy, you simply have to make it easy.
Keep it simple stupid