The answer is that neither technical nor fundamental analyses are exact sciences, and the interpretation of indicators and price patterns can vary from trader to trader, especially when emotions can distort perception.
A set of trading rules allows the trader to repeat successful trades on a consistent basis. Please don't see a trading system as something that you will follow blindly – that would not be disciplined nor smart! A trading system should be considered more like a guide for the trader to capitalize repeatedly on a specific market event. If you can identify and quantify market conditions associated to a specific event, then you will have the opportunity to formulate an hypothesis and start developing a strategy to capture certain market movements.
In short: you don't need trading rules to dictate your decisions, but rather to guide you through the decision making process. Read More
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REPORT: Trading Rules are the Compass to your Success - FXTechstrategy
REPORT: Consistent Trading Success Requires Following Rules - Woody Johnson
REPORT: What is Driving Your Trading? - Woody Johnson
PODCAST: Rob Booker's 23 Rules for Trading - Rob Booker
Editors’ Picks
AUD/USD stays directed toward 0.6500 as RBA's Bullock speaks
AUD/USD is extending losses toward 0.6500 in Asian trading on Tuesday. The Aussie Dollar remains offered after the Reserve Bank of Australia extended the pause. Markets digest the less hawkish policy statement while Governor Bullock's press conference gets underway.
USD/JPY recaptures 150.00 after the expected BoJ rate hike
USD/JPY extends gains to regain 150.00, as the Japanese Yen stays vulnerable amid a classic 'sell the fact' trading on the hawkish BoJ decision. The BoJ lifted the interest rate by 10 basis points (bps) from -0.1% to 0% for the first time since 2007 and abandoned the YCC framework.
Gold price hangs near one-week low, looks to Fed decision on Wednesday for fresh impetus
Gold price struggles to capitalize on the previous day's bounce from the $2,145 region and oscillates in a range during the Asian session on Tuesday. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside.
Bitcoin price shows weakness, but new BTC whales have created solid support at $56,400
Bitcoin price downside momentum continues to gain strength, giving sidelined and late bulls a chance to buy the dip. The market remains focussed on the oncoming halving, expected to kick off the next bull cycle.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.
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