It is human nature to want to be in control, to create order, as we know it. We instinctively dislike unpredictability and feel more comfortable exerting order over our surroundings and our lives. Perhaps arguably it is a survival instinct evolved to protect us in an uncertain and dangerous world.
The reality, however, for most of us is that “life is what happens to you while you are busy making other plans”, to quote John Lennon. Efforts to exert control and order can often seem fruitless.
As in life, it is volatility that we really need. A sterile and predictable environment is non-productive and simply not reality. That beautifully predictable trade that enables us to feel comfortably in control is a yearning figment of our imagination, and we can waste a great deal of time trying to hunt it down.
Markets thrive on volatility, that battle ground between the buyers and sellers. It is our job to recognise which one is temporarily gaining the upper hand, when that gain may start to swing in the opposite direction, and act on it. We need to be patient and thorough in waiting for the right opportunity to present itself, then quick to take advantage of it. We need to be canny. The right opportunity does not mean the ‘perfect’ trade. No trade is perfect. It may look a technically perfect set-up, but you must absolutely accept that it may turn round any moment and lose you money, or it may go a fraction of the distance you expected, or it may go much further than you expected. Such are the powers that be in the market place.
What we lack in our ability to control and impose order on we must make up for in other ways. Developing a back-tested strategy that recognises opportunities and puts us in a position to take advantage of high probability technical set-ups, which is then applied consistently and with discipline is the key to success. Not hunting around for the non-existent perfect trade that affords us the luxury of being in control.
Throw out the window any lingering desire to seek out a perfect trade and instead embrace the unpredictable nature of the daily market battleground. Arm yourself with the right tools and discipline and that battleground may well yield high rewards.
The reality, however, for most of us is that “life is what happens to you while you are busy making other plans”, to quote John Lennon. Efforts to exert control and order can often seem fruitless.
As in life, it is volatility that we really need. A sterile and predictable environment is non-productive and simply not reality. That beautifully predictable trade that enables us to feel comfortably in control is a yearning figment of our imagination, and we can waste a great deal of time trying to hunt it down.
Markets thrive on volatility, that battle ground between the buyers and sellers. It is our job to recognise which one is temporarily gaining the upper hand, when that gain may start to swing in the opposite direction, and act on it. We need to be patient and thorough in waiting for the right opportunity to present itself, then quick to take advantage of it. We need to be canny. The right opportunity does not mean the ‘perfect’ trade. No trade is perfect. It may look a technically perfect set-up, but you must absolutely accept that it may turn round any moment and lose you money, or it may go a fraction of the distance you expected, or it may go much further than you expected. Such are the powers that be in the market place.
What we lack in our ability to control and impose order on we must make up for in other ways. Developing a back-tested strategy that recognises opportunities and puts us in a position to take advantage of high probability technical set-ups, which is then applied consistently and with discipline is the key to success. Not hunting around for the non-existent perfect trade that affords us the luxury of being in control.
Throw out the window any lingering desire to seek out a perfect trade and instead embrace the unpredictable nature of the daily market battleground. Arm yourself with the right tools and discipline and that battleground may well yield high rewards.
Editors’ Picks
EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices
The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.
GBP/USD hovers around 1.3400 with bearish pressure intact
GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.
USD/JPY struggles below 157.50 amid intervention fears, risk aversion
USD/JPY stays defensive below the 157.50 and over a five-week high set on Monday as a dramatic escalation of geopolitical tensions in the Middle East continues to benefit the US Dollar's status as the global reserve currency. The Japanese Yen also benefits from a risk-off market scenario amid looming FX intervention fears, acting as a drag on the major.
Editors’ Picks
EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices
The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.
Gold sticks to gains above $5,350 amid sustained safe-haven demand; firmer USD caps gains
Gold sticks to its positive bias for the third straight day and trades above the $5,350 level heading into the European session on Tuesday. Concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.
GBP/USD hovers around 1.3400 with bearish pressure intact
GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.
Stellar risks deeper losses as derivatives metrics turn negative
Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.
The market is not panicking it is repricing the probability distribution of Oil and time
At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.
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