Trading is icing first and then your cake.
Look at Monday's trading. What stands out?
First trades:
Final trade sequence:
First it's several "nothing-to-write-home-about" trades.
Only then does the opportunity you solved for (in your game plan) show up fully.
- Tuesday? Same.
- Wednesday? Same.
- Today? Again—same.
Look at today's trading.
First trades:
Final trade sequence:
What's happening?
When too many traders jump into the same opportunity, the market must clear the crowd.
Money always transfers from the majority to a select few who know how to play the game.
Your game plan (the opportunity for you to take money from the market) works—but at first, only a little. It's the icing.
The cake doesn't come until others:
-
Exit in frustration.
-
Bleed trying to force it.
-
Or better yet, flip their position in doubt.
And the long the delay between icing and cake—the bigger the cake when if finally comes.
Forex and derivatives trading is a highly competitive and often extremely fast-paced environment. It only rewards individuals who attain the required level of skill and expertise to compete. Past performance is not indicative of future results. There is a substantial risk of loss to unskilled and inexperienced players. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent
Editors’ Picks
EUR/USD could test 1.1750 amid strengthening bullish bias
EUR/USD remains flat after two days of small losses, trading around 1.1740 during the Asian hours on Thursday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.
GBP/USD consolidates above mid-1.3300s as traders await BoE and US CPI report
The GBP/USD pair struggles to capitalize on the overnight bounce from the 1.3310 area, or a one-week low, and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.3370 region, down less than 0.10% for the day, as traders opt to wait on the sidelines ahead of the key central bank event risk and US consumer inflation data.
Japanese Yen languishes near weekly low against USD; focus remains on BoJ policy update
The Japanese Yen trades with a negative bias against the recovering US Dollar for the second straight day, pushing the USD/JPY pair closer to the 156.00 mark or the weekly top. In the absence of any fundamental catalyst, the downtick could be attributed to some repositioning trade ahead of the crucial Bank of Japan policy update on Friday.
Editors’ Picks
EUR/USD could test 1.1750 amid strengthening bullish bias
EUR/USD remains flat after two days of small losses, trading around 1.1740 during the Asian hours on Thursday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.
GBP/USD consolidates above mid-1.3300s as traders await BoE and US CPI report
The GBP/USD pair struggles to capitalize on the overnight bounce from the 1.3310 area, or a one-week low, and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.3370 region, down less than 0.10% for the day, as traders opt to wait on the sidelines ahead of the key central bank event risk and US consumer inflation data.
Gold awaits weekly trading range breakout ahead of US CPI report
Gold struggles to capitalize on the previous day's move higher back closer to the $4,350 level and trades with a mild negative bias during the Asian session on Thursday. The downtick could be attributed to some profit-taking amid a US Dollar uptick, though it is likely to remain cushioned on the back of a supportive fundamental backdrop.
Dogecoin breaks key support amid declining investor confidence
Dogecoin trades in the red on Thursday, following a 4% decline on the previous day. The DOGE supply in profit declines as large wallet investors trim their portfolios. Derivatives data shows a surge in bearish positions amid declining retail interest.
Monetary policy: Three central banks, three decisions, the same caution
While the Fed eased its monetary policy on 10 December for the third consecutive FOMC meeting, without making any guarantees about future action, the BoE, the ECB and the BoJ are holding their respective meetings this week.
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