Ricex
Sergeant
- Messages
- 358
I'd like to try and offer some advice to any forex beginners who may find themselves coming under pressure to make trading decisions when matching fundamental economic information and technical analysis.
I have been trading the forex markets for years and somewhere in my office I do have bits of paper that professes I know something about economics but this is more of a burden than a bonus when forex trading.
Spend a moment looking around the internet for economic comment and you will quickly send most of your synaptic clefts into overload. It is quite staggering the number of different points of view available. What hope for us then to filter the good from the bad and discard the downright ugly. We are all susceptible to over analyzing the endless torrents of information bombarding our thoughts on a daily basis, and we are all capable of making it into a pigs ear.
Lets just take one recent popular commodity discussion as an example... gold. Now gold is at record levels, as I'm sure you are all aware, last week I believe it touched 1060. Now had you been reading the opinions of all the ego driven opinion givers at the moment we arrived at the magic figure of 1000 you would be forgiven for coming away none the wiser of what to do next.
Had you on the other hand calmly kept your head and blanked your senses to this incessant noise, looked at your charts and traded what you saw without prejudice, you would now have a rye smile framed and sitting on your desktop. Now of course the opinion givers are going into overdrive and it's next stop 2000! but frankly who cares? not I.
My point is that for every 5 people that you find saying "sell" I can find another 5 who will say "buy", and at the end of the day the real surreal deal is that nobody knows, so why clutter up your minds with this custard like glue which will in no way shape or form help you in your quest to trade successfully.
Look at your charts and trade what they are telling you is the only truth you need. Be aware of high impact news events like Non-farm payrolls and interest rate changes of course, but don't get bogged down in Bloomberg type news media and try to double guess what effect economics will have on your trading. It is mind rot and will eventually leave you a confused and frightened trader living out your days in a home for the permanentley befuddled.
Good luck with your trading.
I have been trading the forex markets for years and somewhere in my office I do have bits of paper that professes I know something about economics but this is more of a burden than a bonus when forex trading.
Spend a moment looking around the internet for economic comment and you will quickly send most of your synaptic clefts into overload. It is quite staggering the number of different points of view available. What hope for us then to filter the good from the bad and discard the downright ugly. We are all susceptible to over analyzing the endless torrents of information bombarding our thoughts on a daily basis, and we are all capable of making it into a pigs ear.
Lets just take one recent popular commodity discussion as an example... gold. Now gold is at record levels, as I'm sure you are all aware, last week I believe it touched 1060. Now had you been reading the opinions of all the ego driven opinion givers at the moment we arrived at the magic figure of 1000 you would be forgiven for coming away none the wiser of what to do next.
Had you on the other hand calmly kept your head and blanked your senses to this incessant noise, looked at your charts and traded what you saw without prejudice, you would now have a rye smile framed and sitting on your desktop. Now of course the opinion givers are going into overdrive and it's next stop 2000! but frankly who cares? not I.
My point is that for every 5 people that you find saying "sell" I can find another 5 who will say "buy", and at the end of the day the real surreal deal is that nobody knows, so why clutter up your minds with this custard like glue which will in no way shape or form help you in your quest to trade successfully.
Look at your charts and trade what they are telling you is the only truth you need. Be aware of high impact news events like Non-farm payrolls and interest rate changes of course, but don't get bogged down in Bloomberg type news media and try to double guess what effect economics will have on your trading. It is mind rot and will eventually leave you a confused and frightened trader living out your days in a home for the permanentley befuddled.
Good luck with your trading.
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