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 hits fresh 2026 lows near 1.1570
EUR/USD adds to Monday’s heavy losses and reaches new yearly lows around 1.1570 on Tuesday. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.
Oil meets initial resistance near $78.00/bbl
Crude oil has surged to levels not seen in over a year, trading near the $78.00 mark per barrel and edging closer to a potential test of the key $80.00 threshold. The sharp advance in WTI continues to draw support from escalating geopolitical tensions in the Middle East, the effective shutdown of shipping through the Strait of Hormuz, and mounting concerns over supply disruptions.
Gold drops further, threatens $5,000
Gold comes under renewed and marked selling pressure on Tuesday, dangerously approaching the critical $5,000 mark per troy ounce, reversing at the same time four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback and investors’ repricing of Fed rate cuts.
Crypto Today: Bitcoin, Ethereum, XRP pull back as sentiment remains in extreme market fear
The cryptocurrency market is broadly in the red on Tuesday as the Middle East grapples with an escalating war. Bitcoin (BTC) is in a pullback, trading below $67,000 at the time of writing, and most altcoins follow suit.
Energy shock 2.0: Why rising Gas prices could hit the Euro Premium
Even without a confirmed, sustained disruption, the mere risk to a key global energy chokepoint is enough to inject a significant premium into European Gas markets. And for the Euro, that matters.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a Chief trader its second knowledge how to extract cash out of the market.
5 Forex News Events You Need To Know
In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and selling pressure. Chart patterns have a proven track-record, and traders use them to identify continuation or reversal signals, to open positions and identify price targets.
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.