It's the beginning of September. The dog days of summer are over. The kids are going back to school. And it's almost time to dry dock that boat of yours. The summer of relative inactivity in the Forex market should also be over very soon. So get ready to rumble.
The big financial institutions are gearing up for a new season of involvement in the Forex market and now is the time to keep an eye on the fundamental analysis of Forex trading. For the novice Forex trader who spent the summer successfully trading technical charts, it seems like it should be a smooth transition moving into the fall. Be careful. The big money folks aren't the ones who read the news. They make the news. And their summer is over as well.
This is not to scare the novice trader, but rather to serve notice that now is when real life begins every year in the Forex market. It shouldn't scare you. It should excite you. This is the reason you got into this business. This is where the adrenaline kicks in and your ability to focus is truly tested. The key is not to abandon any good habits you picked up during the summer. In the heat of many moments to come, it may seem easy to have knee jerk reactions to something that unexpectedly happened in the Forex market. It's easy to stay disciplined in a nice, smooth, inactive Forex market. But when everything seems to be hitting the fan, the test of discipline will be passed or failed quickly.
It's only the beginning of September, and you may not see the flurry right away. Or you might. But knowing that everyone is back at work is enough to keep you on your toes. You have your plan. You have your technical analysis. And most of all, you have your stop-losses in place. Part of your discipline should be the ability to tune out the noise. A lot of what you'll be reading and hearing in the fundamentals won't apply to you. You have to develop a fundamentals filter. Listen and take what applies into account, and disregard the rest. It's meant for other people.
Don't get shaken. It's the same Forex market. Look at it as a bonus. Now there's more liquidity! You'll have trends to look forward to, and wide daily ranges to day trade. Everyone is in it together, and there's enough for everyone.
Probably the most important thing to remember as the Forex market goes into another fall season, is that there will be times when you'll want to stay out and wait. There's nothing wrong with wanting to regroup when things get a little crazy, and you'll wind up saving yourself money. If you're looking at your charts and considering the fundamentals and nothing makes sense, then get out and take a break. Taking a stab in the dark rarely works and it's not worth the risk. You'll know when to jump back in, and when you do, it will be with confidence and you will be more apt to turn a profit.
No comments:
Post a Comment