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Danger Of An Animation Of The Market. | Currency Trading For Dummies

Danger Of An Animation Of The Market.

Posted by fts on 14 May 2010

Do not allow journalists or analysts with the hypertrophied imagination to accustom you to think of the market, as about marathoner: “Any bull market from time to time do a respite before the further sprint”. Or about an animal: “Claws of this bear market have broken through the last scrap of resistance – nothing can stop it when its blood will begin to seethe!” It is too frequent when authors, and especially financial authors, result poetic metaphors, trying to make the narration more interesting to readers. Instead of simply telling: “Today the market has passed 50 items”, they will try to give a mystical shade. “The market has seen today chance to weaken resistance and has flown the whole 50 items”. There are at the market no eyes. It does not have feet. And blood to rage, also is not present.

As soon as you will start to attribute human or superhuman characteristics to the mister Market, it can destructively to affect your ability to make reasonable decisions. You start to transfer the thoughts on the market; you trade with it, as with a live being. You start to wonder: what should I do, if the market faces the truck loaded with bad news? If I as struggled with pressure of bears, I would need a respite so that within several days I will trade, as in the lateral market. Please, remember, the market never gets tired. It is not subject to pressure.

How much time did you hear silly pretentious conversations on the market, like this: “Confident kind Dow says that it wishes to move above”? “Nasdaq definitely will return to previous level, irrespective of our actions!” Remember – Dow does not wish “to move above”, and Nasdaq is not going to go somewhere. They precisely also speak about where they will be closed in any given day as the avalanche will tell to you about when it will begin and where it will stop.

What does move the market? They are traders and the investors doing informed and not so decisions. They use the advanced technical systems, difficult fundamental approaches, helps, assumptions, the unreliable information and even astrological aspects to make decision to purchase, sell or to stand aside. All formed and uneducated assumptions rush to a hole, and the market is pressed down or extended, that then to be closed above or lower. It means that the market will tell nothing about results of day. For this reason you should not animate it. Accept, as a reality that is data file. The market is going to move, but in what direction as for a long time and with what speed – we do not know. Therefore we accept everything as it is, avoiding allocating with its human or magic properties.

It is important to gather as much knowledge about currency exchange market as possible. Because this info will help you not to lose much money on Forex trading or Forex investment.

Surely not a single piece of knowledge can be a 100% guarantee against losses, in particular on Forex, but sometimes just one Forex books can be of big service to you.

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