Looking for profits in the forex world is very much comparable to hunting activities in the jungle. In this case, instead of hunting animals, we are actually hunting each others.We need to know who are the players as well as how to hunt our preys successfully. They are of course new hunters who always fell as preys as well as seasoned hunters who've been there for 20 years or more.
These new hunters are always the victim since they hardly knew the playing field, where to hide, how to shoot, when to shoot and when NOT to shoot. At times, due to their energetic and spirited approach, they tend to open fire when they are not suppose to, opening their position for other seasoned hunters to hunt them down.
As for the seasoned hunters, they knew the forest in and out. Though there are tendency for them to be trapped or shot at times, but they knew very well on how and when to shield themselves accordingly so that they can survive the attack, no matter how.
Perhaps we have to learn the basics of hunting from the Idiot's Guide, but when it comes to the real hunting zones, it actually takes guts, skills and experience in order to survive and return with prosperities.
Reading the movement of your preys is another tricky skills that need to be developed. Most of the time, they are baits rather than actual preys. This is where planning and system plays its important roles in knowing which is which.
Other than that, timing is just as important as managing your risk. In a thin market condition when they are hardly any hunters around, you should not be in as well. Since during these thin hours, brokers can play either roles as bulls or bears that keep on hunting your Stop Losses so that you can be flushed out from the forex jungles earlier than others.
Sounds a bit conceptual I supposed. But believe me, the more technical you become in approaching the market, the more conceptual you will be in your approach.
One of the important lessons that I learned so far is to understand and respect the market, no matter what. They could go wild, crazy and unreasonable and it is our duty to read and understand them, not to question them. At times, we take advantage on them as well.
As hunters (or traders), you could wait, you could hope, you could pray or whatever you want to do. But the fact is, the preys are always there and it is our job to know and study when and how to take a clean shot in bringing back these preys as our profits.
Strong ammos (i.e. margins) are just as important but they are not everything. If you do not know how to use them wisely, you would end up with nothing as well.
Once you're in... it's either you kill or be killed by other hunters. Be smart but don't try to be too smart. The jungles and hunters in there are simply too big and experience for you to outsmart. Most of the time, the way to survive is just to follow where they go... (trend)...
;))
Thanks for that...
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