"News coming out.... who cares, they are already in their positions. that's for dumb money"..
who cares about the news the position is already on...news will confirm it or give the opportunity to evaluate the impact. these guys are in for the long haul. you can't turn a position of size on just any news item. if something unexpected happens like boe increasing rates when no-one expects then yes the big guns will also react and thats why we then see the market rip in a direction. it does happen that news comes out indicating that the market "should" go in a certain direction but if the power houses don't believe in it then the market is going to get added to and move the opposite direction. you learn that by spending some "screen-time"
i have thought to try and convince people to trade with the trend and believe in the trend. it is easier on the longer timeframes as the trend is stronger there, especially on the usd crosses, but it is difficult. So I thought of this way to explain it: how many markets turn on a double top? go and have a look! many many many some even turn on a triple top some on a crown? some on head and shoulders! and the list go on...still people try and pick the top on the first reaction! after you see a double top go and look to the left of it and see how many times did the market have to pass a previous top to get to this turning point? does it then not make sense to buy pullbacks? and NO nobody can tell you when the pullback is over so you can start buying again. you get paid by your profits for getting this right. the easiest for me was to get in with a bit and if it goes against me i cut a bit if it goes for me i add a bit. it's not easy but it can be done if you get a feel for your market. i find that some people try to watch too many currencies at a time and therefore "automate" things - automate your mind and you won't look back.
i have thought of many analogies to explain the focus we need to keep on our currencies we have decided to trade and the best I can think of is the way lions hunt. think about it- a lioness stalks her prey and out of a herd of maybe 100 impala it will keep its eyes on the 1 single impala it wants to catch, even if another impala runs through its vision it will never move its eyes to this "closer" impala. the lioness knows, if she moves her eyes from her target she will not be able to re-focus on it in all the confusion of a running herd. The lioness will either get the prey or nothing at all she does not jump around because she knows -if she wants to eat she must stay focused!
So focus on those you have an interest in and focus on your setups be that technical or reactions to fundamentals or more importantly - your money management plan.
who cares about the news the position is already on...news will confirm it or give the opportunity to evaluate the impact. these guys are in for the long haul. you can't turn a position of size on just any news item. if something unexpected happens like boe increasing rates when no-one expects then yes the big guns will also react and thats why we then see the market rip in a direction. it does happen that news comes out indicating that the market "should" go in a certain direction but if the power houses don't believe in it then the market is going to get added to and move the opposite direction. you learn that by spending some "screen-time"
i have thought to try and convince people to trade with the trend and believe in the trend. it is easier on the longer timeframes as the trend is stronger there, especially on the usd crosses, but it is difficult. So I thought of this way to explain it: how many markets turn on a double top? go and have a look! many many many some even turn on a triple top some on a crown? some on head and shoulders! and the list go on...still people try and pick the top on the first reaction! after you see a double top go and look to the left of it and see how many times did the market have to pass a previous top to get to this turning point? does it then not make sense to buy pullbacks? and NO nobody can tell you when the pullback is over so you can start buying again. you get paid by your profits for getting this right. the easiest for me was to get in with a bit and if it goes against me i cut a bit if it goes for me i add a bit. it's not easy but it can be done if you get a feel for your market. i find that some people try to watch too many currencies at a time and therefore "automate" things - automate your mind and you won't look back.
i have thought of many analogies to explain the focus we need to keep on our currencies we have decided to trade and the best I can think of is the way lions hunt. think about it- a lioness stalks her prey and out of a herd of maybe 100 impala it will keep its eyes on the 1 single impala it wants to catch, even if another impala runs through its vision it will never move its eyes to this "closer" impala. the lioness knows, if she moves her eyes from her target she will not be able to re-focus on it in all the confusion of a running herd. The lioness will either get the prey or nothing at all she does not jump around because she knows -if she wants to eat she must stay focused!
So focus on those you have an interest in and focus on your setups be that technical or reactions to fundamentals or more importantly - your money management plan.
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