Let’s talk about the current FX market conditions
Let’s talk about the market environment we are in. Market volatility…we need volatility in the market. It is what keeps the market moving constantly. Without volatility there would be no trade opportunities. But right now we are beyond volatility. News announcements coming out of the Eurozone, Greece. Big upsets in the market causing fear. Fear is what drives prices out of control.
Let’s take some recent trade setups that I lost. Setup at very solid key trading levels. But when the market gets fearful it can blow through support and resistance levels like they were never there. So we are about to trade a little more cautious.
So let’s talk about history. I have been trading for 10 years. This happens ALL the time. I think about every 18 months there has been a period of 3 to 4 months when the market is just way too bouncy leaving us with lower trading opportunities, or just down right explosive like we are in right now. Guess what? It always goes back to normal. Around April 2012 we are nailing almost 2000 pips a month. The last few months it has been in the hundreds of pips per month won. A much trickier market to deal with.
Now let’s about about the mindset of the average Forex trader out there and why they have a problem being successful. The average new Forex trader comes into the market after hearing stories about 100% month gains and they want in on the action. They come into the business with a gamblers mindset. A mindset that is doomed to failure.
The traders that are kicking butt, making a living trading, have a very different mindset. They invest more for the long-haul. Like a real estate investor would. Think about it. When you buy a piece of property you are in it for the long-haul. You don’t get an appraisal every day worrying about the value of the property going up or down. You are in it for the long-haul (have I said that enough times 🙂 ?
So the moral here. Folks, if you are going to make it long-term as a trader you have to stick with it. There will be losses. No way around it. And you will even have losing months. Even with our service Pro Signals Direct we have losing months…not very often, but we do. But losses are part of the business. You have to pull your emotions out and look long-term.
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