Foreign exchange trading is not cause and effect trading
01/22/2009 in Psychology
I`ve tried to explain this type of thing many times – i think there is not an 100% correct answer because if there was, we all would trade the same way.
The bottom line is foreign exchange trading is not cause and effect trading. Currencies lead and lag and relationships sometimes heavily correlate and other times not. 50% of the time is spent looking at patterns and relationships.
But trying to show someone who is not used to thinking that way is very difficult because their level of understanding is different than mine – and they want a hard and fast rule.
Adam said on 01/22/2009
What do you call “cause and effect trading” ? Are you saying that technical analysis doesn’t work, that fundamentals doesn’t move the market, or that forex is essentially random ?
Sasa said on 03/25/2009
Hi!
Nice blog you have here, you managed to give people a lot of nice material about forex. Keep up the good work.
Better said on 08/11/2009
I think that the trading at forex is a VERY HARD and stressful job for human
But one robot really help me, it is EA BOSS, you can find this smart thing by GOOGLE 