Dare to stand in front of this swirling tornado? Think again...Looking at the movement of price during a major breakout, I couldn't stop thinking about a tornado chasing anything that dares to stand in front of her... scary to most but enjoyable to the tornado chasers...
When it happens, it happens. You don't have to chase it as surely it will come after you, especially if you dare to stand along the way.
Look at the price chart for instance. You will see that during a ranging market, it's like an all clear and sunshine days. No surprise, no storm as the weather is perfectly good. Good on the macro-economics level I suppose, but isn't good for us as currency traders.
We do need this storm aka volatility in the market, well at least some weather pattern (or trend) that we could capitalize on. If day to day the weather remain as it is, say imagine the price of GBP/USD pairs remain at 1.6500 for 3 months without moving, then I bet all traders (especially intraday) would start wrapping up their account and begin doing some other business, like selling burgers?... haha.
Well then. The point of this writing is just to share my conceptual thinking on the market. I couldn't stop enjoying myself looking at the price patterns and movements, testing my technical and fundamental skills in speculating the "what's next?"... it is fun indeed, especially when you got it right...
I knew most forex gurus would tell you that you don't have to predict the market. All you have to do is just see the trend and jump in with a perfect timing. Right?
The question is... how do we define a perfect timing? ...especially to those who are doing this on a part time basis. There are just too many instances when we thought it was a perfect timing when the market suddenly moved against the trend... and us as well... how do we know?
So to me at least, like it or not... we do have to speculate at times, taking our chances based on calculated risks & hoping to be lucky and correct. As mentioned before, it is not that difficult, but it's not that easy either... Getting it right 50% of the time is all I need but that 50% is just not happening during a bad day, week or month...
The only difference that we all could make as a good trader (rather than gambler) is simply to know and manage our risk accordingly, like do not risk the money that you could not afford to lose bla bla bla...
Maybe I am not being in the market long enough (ie 2 years is nothing compared to most of you out there) but the pace and pain that I am willing to sacrifice in order to fully comprehend this market is really something that I personally don't believe... something that really triggers my interest...
I wish there will be subjects on forex engineering somedays... so that we all could appreciate the art of human's behavior in driving these market volatilities aka tornados...
One more point before I forget, as a good trader, we do not chase these tornados actually. We let it form and come to us so that we could capitalize their strength accordingly to our advantage. Fighting the turbulence & tornados is surely a suicide... so it's either you join it on-time or stay out untill the weather is clear again...
Have A Nice Trading Week Guys... ;)
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