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 jumps above 0.6500 after hot Australian CPI data
AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY hangs near 34-year high at 154.88 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.
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