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 stays defensive below 1.1900 as USD recovers
EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.
GBP/USD holds above 1.3600 after UK data dump
\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.
Japanese Yen strengthens on renewed verbal intervention
USD/JPY extends its losses for the fourth successive session, trading around 152.90 during the Asian hours on Thursday. The pair weakens as the Japanese Yen strengthens following renewed verbal intervention from Tokyo.
Editors’ Picks
GBP/USD holds above 1.3600 after UK data dump
\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.
EUR/USD stays defensive below 1.1900 as USD recovers
EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.
Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD
Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.
Cardano eyes short-term rebound as derivatives sentiment improves
Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.
The market trades the path not the past
The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.
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