I want to share with you my experience of trading in the Forex market, relating to the market in general and its postulates, which I derived for myself in the process of trade and analysis. The article is written in the style of reflection and is intended primarily for experienced practicing traders.
Markets are constantly changing:
Market conditions (trend, flat, reversal), as well as the modified states of these conjunctures (trend, angle, correction pulse length, bar formation, volatility, homogeneous trend or mixed);
Flat (narrow, wide, with a shortage to the borders, with the rebound and false breakdown of borders); Turn (V-shaped, rounded).
Rational markets (logical), where most regularities and formations of different kinds work in most cases.
Irrational (emotionally-instinctive) markets are unpredictable chaotic, where all of the above does not work, there are difficulties in determining the market situation, the price is sharply moving up and down.
These postulates are inherent in man, society, processes that occur in society, nature, cosmos and so on, in other words, cyclicity, dynamism, variability, flexibility is a kind of evolutionary tool of everything, therefore it must be taken into account, it is the natural code of the system, and build His life, work according to these principles, as expediently as possible and more profitable for himself in the future.
Financial markets – the brainchild of man, respectively, and they function on the basis of human psychology with its emotions, feelings and instincts, and all this is manifested in the market.
Accordingly, financial markets – this is, according to the first theory, the accumulation of people with money, which pursue different goals: speculation, investment, hedging, currency exchange, personal interest. And they make their decisions about buying and selling on the basis of various factors: personal motives, speculative interest, insider, technical or fundamental analysis, or simply randomly buy and sell.
The second theory- the market is managed by a group of financiers, respectively, all the same is inherent in this theory. Therefore, to break even in the financial markets in the future, one must constantly feel the interests of big money, be with them in the same mental attitude and think just like them, have the same kinds of currency, this business is subtle, flexible and difficult to implement.
Therefore, the conclusion is extremely simple! In the financial markets everything works: known and unknown trading methods, but not always and everywhere, 50 to 50, in the future there will be both losses and profits, both loss-making phases and profitable ones. And it does not matter how many books you read, the video has reconsidered which “gurus” studied – all this is just often superfluous, which does not matter when trading in an ever-changing market in real time. All this is just to ensure that there is a formality at the entrance to the market, objectivity, and not subjectivity – the inputs made on emotions, feelings, instincts, desires, experiences, and so on.
In other words, there was a systemic, algorithm in actions and behavior in the market.
But the nature of the market is dynamic and variable, respectively, and the behavior of the trader and his trade should acquire the same character, according to the logic of things, but in the future it is impossible to work in tune with the market, because people are different, you cannot always synchronize with profitable traders or the interests of financiers – this is some kind of magic.
Tagged business, currency market, economy, Forex for novices, guide, market, method of trading, money, Politics & economics, Postulates of the market, profit, stock exchange, Stock Trading, trade, trading