Folks, I was surprised to learn that many here are still learning about the unpredictable ways of Forex. Instead of telling you about the dangers of overleverage or heavy emotional trading that some seem to show in this thread, (please do not take offense. I have been there myself and I know the feeling of losing) I want to share this weekly graph to give context to this week.
During the last 10 years, there have been ONLY 18 times that PA changed direction that would take somebody into large losses if caught in the wrong direction. Basically, it is a change every 6 months. Two questions come to my mind. (1) is this week N=19, (2) has anything changed in the world that justify this move? I do not know about number 1 but I cannot see any big change but a fool given speeches as well as NF employment No that say that US is still doing pretty sour!?
I believe that those that lost a lot this week, and are emotional about it, might be playing with too high leverage, need to learn more about MM, or do not have a clear MO. More experience, more practice, etc. If a trader cannot take 500 pips drawdown and keep smiling....well well well...overleverage or greed is probably present together with and eventual margin call or short trading career.
Again. No offense to anyone. I love this thread. Cheers and bring the wine
During the last 10 years, there have been ONLY 18 times that PA changed direction that would take somebody into large losses if caught in the wrong direction. Basically, it is a change every 6 months. Two questions come to my mind. (1) is this week N=19, (2) has anything changed in the world that justify this move? I do not know about number 1 but I cannot see any big change but a fool given speeches as well as NF employment No that say that US is still doing pretty sour!?
I believe that those that lost a lot this week, and are emotional about it, might be playing with too high leverage, need to learn more about MM, or do not have a clear MO. More experience, more practice, etc. If a trader cannot take 500 pips drawdown and keep smiling....well well well...overleverage or greed is probably present together with and eventual margin call or short trading career.
Again. No offense to anyone. I love this thread. Cheers and bring the wine
Empty as water and soft as a facing wind mountain