NZDUSD SELL RALLIES FOR THE NEXT LEG LOWER - WITT? #1
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Three problems alot of traders face.
Having the patience and professionality to trade this trends is the tough part. Thats where alot of people surrender if they miss an opportunity or two and escape afterwards to counter-trend trading, because psychologically the market is always offering you a counter-trend trade.
In my view to trade trends, one has to be very professional, and has to have a very methodological mindset.
So the psychological stability is the first thing alot of traders lack.
pbs.twimg.com/media/C_h4h-aXoAAdEgB.jpg
Second point would be one of the main difficulties people tend to have its defining where a trend is happening, and here is a big problem. People tend to only analyse trends based on technicals, but in my opinion this is simply not enough. To become more accurate in trading with the trend, one has to understand the fundamental background of the currency one is planning to buy or sell. Its not enough to draw a few lines one has to have a general idea of why i am buying this or that. When you go for example to buy a car, you dont just look at it and buy it, you want to know its background, you look at the engine and so on... you don't just buy based on the design. Same is the technical analysis in the end its design. You can always interprate a chart formation bullish and at the same time to be bearish. It only gets really bullish or really bearish if there is a fundamental reason behind a currency to trade in a certain direction - called "clear bias".
So don't be lazy, reading, reading and reading always try to know as much as possible about a certain currency you are planning to trade.
#What has happened ? = Impuls
#What is happening ? = Correction
#What is going to happen ? = Continuation
Third point is the entry but in my view its the easiest one if you can manage the upper two points.
Don't chase the trend, in a clearly defined bear trend - sell high and in a clearly defined bull trend - buy low. Thats where you can use technicals, but you have to have a solid base before.
Lets take the NzdUsd for example.
I want to sell this pair based on what ?
Well the RBNZ was today quite dovish, but the market was anticipating a hawkish shift, and it did not get this. Thats one point in favor of selling the NZD on moves higher.
Does this mean i will automatically sell as soon as the prices approaches my trigger zone ? No of course not, i will look and reevaluate up there if my entry and my reasons are still valid.
Right now this is just a plan, but its not written in stone. This markets are dynamic, if the reasons change, its better to be careful and just wait and have patience.
Blessings to you all, and i hope this helps.
Thank you for following and sharing.
Having the patience and professionality to trade this trends is the tough part. Thats where alot of people surrender if they miss an opportunity or two and escape afterwards to counter-trend trading, because psychologically the market is always offering you a counter-trend trade.
In my view to trade trends, one has to be very professional, and has to have a very methodological mindset.
So the psychological stability is the first thing alot of traders lack.
pbs.twimg.com/media/C_h4h-aXoAAdEgB.jpg
Second point would be one of the main difficulties people tend to have its defining where a trend is happening, and here is a big problem. People tend to only analyse trends based on technicals, but in my opinion this is simply not enough. To become more accurate in trading with the trend, one has to understand the fundamental background of the currency one is planning to buy or sell. Its not enough to draw a few lines one has to have a general idea of why i am buying this or that. When you go for example to buy a car, you dont just look at it and buy it, you want to know its background, you look at the engine and so on... you don't just buy based on the design. Same is the technical analysis in the end its design. You can always interprate a chart formation bullish and at the same time to be bearish. It only gets really bullish or really bearish if there is a fundamental reason behind a currency to trade in a certain direction - called "clear bias".
So don't be lazy, reading, reading and reading always try to know as much as possible about a certain currency you are planning to trade.
#What has happened ? = Impuls
#What is happening ? = Correction
#What is going to happen ? = Continuation
Third point is the entry but in my view its the easiest one if you can manage the upper two points.
Don't chase the trend, in a clearly defined bear trend - sell high and in a clearly defined bull trend - buy low. Thats where you can use technicals, but you have to have a solid base before.
Lets take the NzdUsd for example.
I want to sell this pair based on what ?
Well the RBNZ was today quite dovish, but the market was anticipating a hawkish shift, and it did not get this. Thats one point in favor of selling the NZD on moves higher.
Does this mean i will automatically sell as soon as the prices approaches my trigger zone ? No of course not, i will look and reevaluate up there if my entry and my reasons are still valid.
Right now this is just a plan, but its not written in stone. This markets are dynamic, if the reasons change, its better to be careful and just wait and have patience.
Blessings to you all, and i hope this helps.
Thank you for following and sharing.
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