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 looks to regain the 200-day SMA
EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis
GBP/USD slips below key averages as geopolitical risks mount
GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.
USD/JPY extends rally as Middle East conflict adds to Yen weakness
USD/JPY rose about 0.15% on Tuesday, pushing close to 157.60 as the pair continued to grind higher following last week's sharp rally. Price has been chopping in a wide range between about 152.00 and 159.00 since late January, with alternating large-bodied bullish and bearish candles pointing to a tug-of-war between opposing forces.
Editors’ Picks
AUD/USD meets support near 0.6950
AUD/USD retreats for the second straight day on Tuesday, this time breaking below the 0.7000 level to hit new four-week troughs. The intense sell-off in the Aussie comes in response the continuation of the move higher in the Greenback, helped by robust safe haven demand amid geopolitical crisis.
USD/JPY extends rally as Middle East conflict adds to Yen weakness
USD/JPY rose about 0.15% on Tuesday, pushing close to 157.60 as the pair continued to grind higher following last week's sharp rally. Price has been chopping in a wide range between about 152.00 and 159.00 since late January, with alternating large-bodied bullish and bearish candles pointing to a tug-of-war between opposing forces.
Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict
Gold price faces some selling pressure near $5,100 during the early Asian session on Wednesday. The precious metal falls amid a renewed US Dollar demand and dimming prospects for US rate cuts. The US ISM Services Purchasing Managers Index report will be published later on Wednesday.
Ethereum: Whales step up buying as short positions contract
After holding firm heading into the last weekend, Ethereum whales have returned to action, pouncing on the volatility stemming from escalating military actions between the US and Iran.
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.
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