Saturday, 29 November 2014

The Market is Never Wrong

Fear and Greed are the two emotions that have been a detriment to mankind.   It is written about again and again.  Yet it still exists.  And even if you control it today, it will lurk it's ugly head again perhaps tomorrow, like those pesky ants that just keep on popping up.  Mosquitos that never seem to stop breeding.

Fear and Greed are alive and well and producing spawn time and time again.   All you can do is keep your emotions in check.  Fight the temptation.  Like on a Friday when your Forex Account has a big fat positive balance.  And you have this urge to trade again.  Out of fear that you will miss out.  Out of greed because you want more.  And out of ego because you have been "right" so many times already this week.

Don't do it.   Just stay away.  Once you go negative then Fear will feed on you.   It can mess with your psychology.  Create doubt.  The fear will grow.  Your natural defense mechanism will kick in and you will want to fight the good fight.  You're right. The market is wrong.  Guess what.

The Market is NEVER Wrong!

Do yourself a favor and just sit out some trades.  It's better to be right and watch then to enter and be wrong.   Already in a bad trade?  Be honest with yourself.  Suck it up.  It's better to stop out now then to weather a loss 5 or 10 times of your current loss.   Do your trend analysis.  Analyze just how bad the situation is.  Go to a smaller time frame and look for exit and entry points.  Maybe stop out and reverse your trade.  Or just wait until the next entry point.    Just know that the market is right. You are wrong.  And if you're in the plus that means like the force, "The Market is With You".