Today BoE raises interest rate to 0.5 but GBP crash....what a f**k?
Why market is so strange? I'm thinking to give up....
That is why you should NEVER try to predict the Markets! You cannot forecast it, because it is about human emotion and behavior, such greed, fear, herd mentality, etc.
Successful trading is about having an "edge" based on probability, statistics, risk and money management, etc.
Hi Fernando, thanks for your reply.
Yes, I know what you are saying i'm trading since several years but sometimes it is very frustrating in fact sometimes market is on the right spot technically and also on fundamentals but it is doing just the opposite...really annoying..
Don't give up!
I am sure, you as mr. greenThumb have learned to work with nature, not against. Nature does what it does, so do the markets really.
Hello Enrique thanks for encouraging but I worked hard in these years
to gain whatever sort of consistency in my trading and every time that I
gain something and the hope start to re-growth then i give back all to
the erratic market behavior; the reality is that bank and large funds
can accumulate or distribuite large amount of orders and can hold in
huge floating loss as they have virtually unlimited capitals so in the
end they will come out always winners with their fat bonuses...it is a
perfect business for them not for us!
You need to invest some time and research into proper Risk and Money Management. That is the only way to protect your trading from the erratic market behavior.
Your trading should react to what the market is actually doing, and not what you expect it to do!
Okay, but can you give some examples or guideline material? Are you trading since long time?
For real world specifics, send me a PM, but let me leave you with this more abstract analogy:
A cat is tracking and trying to catch a mouse. Now the mouse has come across a fork in the road, so the cat does not know which way the mouse is going.Some cats, will say that it will go left and give the reasons for it.Other cats will say that it will go right and give their reasons for it.Others might even say, that it will just go back instead.So, what is the correct answer?The correct answer is “All of the above”! So, instead of trying to figure out which it is, the “trader” cat, plans his strategy on all three possibilities and calculates the risk and reward for all the possibilities and instead of trying to “guess”, it simply reacts to whatever the mouse does, because he has already planned for what his reaction will be for each case.In fact, he may even have decided that in all three cases the risk is higher than the reward, and may decide just to let the mouse go and not do anything, and simply wait for another opportunity that offers a better probability of success.
Can use a straddle entry if your not sure.
Either way you 'see' an entry point, and if it doesn't work out you close the trade, and if it does work out, you ride the wave for as long as possible.