I've just been browsing around these forums, and although there are a lot of positive discussions and posts, the majority don't seem to get it. A lot of people are claiming "it's all in the price" and that you don't need anything else, etc. That's partially true, but it's a little more complex than that.
One of the most dominant market forces is information. Look at the world today, information is extremely important. Facebook and Twitter are becoming important parts of every day life, and are making good money because they hold your information - your interests, how you spend your time - for advertisers. Look at the Snowden case. People are realizing the perceived value of their information and want to protect it. I heard John McAfee (the guy who created McAfee Antivirus) on the radio the other day, and he was talking about how he is working on software that will better protect your personal details from government snooping. Obviously there is a market for this. And this is the market. The truly impacting information is what you should be looking in the Forex market. It doesn't matter what causes it. Whether it's interest rate cycles or lunar cycles, you should discover what is really causing money to shift in this global market.
The second, and equally important truth is liquidity. For every buyer there is a seller. Sometimes there is a third party involved. But the important point to grasp is that we need others to make prices. What happened in 2008 was largely to do with liquidity. You need to avoid crowding, and you can do this by figuring out your opponents' positioning. Do you think that when a large fund is converting billions they will check to see if their moving averages line up? No, they will be looking at what is available in the market place. It's not to say that being aware of such things isn't important, but only when you're planning an attack on traders' positions, not basing an entire strategy on it.
As a decentralised market, the Forex market is different from others. Everything you need is already available to you and everyone sees the same thing as you. Remember, it's about perceived value.
I'll post a chart of recent events in my next post to better describe what I mean.
One of the most dominant market forces is information. Look at the world today, information is extremely important. Facebook and Twitter are becoming important parts of every day life, and are making good money because they hold your information - your interests, how you spend your time - for advertisers. Look at the Snowden case. People are realizing the perceived value of their information and want to protect it. I heard John McAfee (the guy who created McAfee Antivirus) on the radio the other day, and he was talking about how he is working on software that will better protect your personal details from government snooping. Obviously there is a market for this. And this is the market. The truly impacting information is what you should be looking in the Forex market. It doesn't matter what causes it. Whether it's interest rate cycles or lunar cycles, you should discover what is really causing money to shift in this global market.
The second, and equally important truth is liquidity. For every buyer there is a seller. Sometimes there is a third party involved. But the important point to grasp is that we need others to make prices. What happened in 2008 was largely to do with liquidity. You need to avoid crowding, and you can do this by figuring out your opponents' positioning. Do you think that when a large fund is converting billions they will check to see if their moving averages line up? No, they will be looking at what is available in the market place. It's not to say that being aware of such things isn't important, but only when you're planning an attack on traders' positions, not basing an entire strategy on it.
As a decentralised market, the Forex market is different from others. Everything you need is already available to you and everyone sees the same thing as you. Remember, it's about perceived value.
I'll post a chart of recent events in my next post to better describe what I mean.
and I'm so new to the market so I need time to understand what you have been saying up there 