Self- doubt and the lack of personal conviction is often the root cause for the sequence of events that lead to our own mental unravelling and consequential failures in life.
Today some of the currency markets are trading in a sideways channel. The EUR/ USD seems to be range bound within a sideways channel of 1.07 - 1.15. The USDX futures contract is stuck in the 94 - 97 range and bullion is trapped within the 1150 - 1200 channel with traders frustratingly unable to find conviction in taking a strong position on either side. When markets descend into a circular hover mode one by one traders adopt a "wait and see" attitude and one by one they trickle off to the sidelines to sit on the fences and wait for the gathering winds and the rage of storm with any potential breaking news to spur the markets into a convincing direction. Follow thy neighbor! Traders stuck in sideways channels often resemble sheep waiting for someone to take a lead. All day long they start to call each other up "anything there?" "anything at all?' Indecision creeps in and seeps into the mind of the trader as easily as the approach of night descending upon the unwitting market maker unawares. Perhaps this is why very few people can exhibit qualities of leadership to take a group in a direction when the winds are silent. Qualities of strength of mind and prescience are almost often wanting when nobody seems to exhibit the force of movement in the markets.
Why do traders go off on to the sidelines when the markets come to a stand still? because they would prefer to hang out for the big trade where they can jump into the USDX and watch it climb 6-7 Dollars from its current level of 95. or perhaps they would love to see the USDX fall in value 6-7 Dollars to the 88 mark so that they can all gleefully jump into a wave of motion that can carry them a big profit long or short. traders like this hanging out for the big trade are called 'momentum traders'. However surfing the momentum of a trade does not necessarily result in profits as volatility and whipsaw come into effect and throttle the novice into a meek submission.
Usually it is the quiet position traders away from the crowd, uninfluenced by gossip, who takes his positions in a quiet market like planting a seed for the future. This is the trading mentality of a seasoned veteran who does not need to ask or be asked "anything there?" all day long. EUR/USD floating at the 1.13; Greek debt? US Fed watch anxiety? Not a problem; the veteran makes his or her position without influence and market song on his or her own judgement. why? because seasoned traders do not exhibit any fears at all. In a nutshell market mental paralysis is about an issue of fear of losing money.
Please read the following website material by Dr. Michael J. Duckett at the website - http://www.upgradinglife.com/
Watch the following video by Dr Michael J. Duckett on Fears...
Pieter Bergli - DeLoren Trust Holdings
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Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers
A non-profit commitment to provide education on the properties of currency markets
Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers
