Saturday, August 29, 2009

Market trend ~ What's your wish for, what you can see

This has to be, I mean the concept, has to be understood well among traders.

It can cloud our mind very strongly, the two.

What you SEE (green pips)
You can see clearly that the market is heading down on the chart, on the screen. But due to some floats in your account, you wish that market movement will clear them as soon as possible.


What you WISH (red pips)
You wish market going up and because the wish is strong, you simply ignore of what is seen on the chart.

You're intentionally ruining your trading account
Right, because you already have some float say, - US200 in your US1,000 mini trading account. Because of this, you really wish that market going up. Instead, market actually going down and the float increasing to -US250. Nope, you think. It will goes up later so you still devout to the belief that the market will goes up.

But the market dip further, and now the float is getting bigger than ever. Say, it eats up to -US500 or 50% of your equity and yet still reluctant to believe of what you see.

Your indecisiveness is killing your account. At the end, after your equity left a meagre sum of few hundreds dollar, you opt for the last resort ~ putting up a lock margin in a terrible state. Lucky that your aren't trading in US brokerage firms, but you aren't so lucky anyway.

This is GBPJPY pair, violatility is high. Your 2 lot BUY position stucked at 162.67 and 2 lot SELL position stucked at 148.84.

You're digging your own grave. Die man ...

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Forex world ~ very interesting and you heard a fairytale every second.

Rag to richest story.

Warrent Buffet's kinda thing.

A scarry money machine, and now you decided to join in...

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