I have heard it said that women make the best traders. While I do not have any empirical evidence, this may be closer to the truth than many of us would want to admit.
What is trading? Is trading really sitting at a desk or phone watching charts for hours on end to click a green or red button and collect the resulting profit? Perhaps it is more than a couple of averages crossing or violated deviation envelopes. What if successful trading is, simply put, getting the best price for the product you are wanting to purchase?
Let us say you are going to your local market to pick up tonight's dinner. If you are like me you have a set budget and will stay within your purchasing power to procure your meal. Will you grab the first thing you see regardless of its price? Would you not rather get the best 'deal' and locate the in-season produce thereby stretching your money as far as possible? In fact, you would shun the overpriced apples, in favor of the 'on sale' bananas, potatoes, what have you.
Perhaps we as traders become blinded when we first see those flashing lights and all the multitude of squiggly lines. Did you choose candlesticks or line graph? Are your settings the same as mine? It doesn't matter! What you should be looking for is the sign over the shaving cream that screams, 'Half Off Today Only'! If you are an extreme couponer then you have the mindset to be a GREAT trader!
I would wager every one of us notices when the price of Gasoline moves up 20cents. And we equally pay attention to the opportunity to buy gas 15cents cheaper at the station across the street. Is trading really any different? If only we applied these same skills to trading we would be far ahead. Instead, we believe that we 'know nothing' about trading and listen to every person that comes along that possesses a flashy suit and smile. You already know how prices work! Don't you? When it is low, buy! That is what you do every day!
You are probably thinking, "How do you know when a currency is low or high?". Here is a question for you. Do you know if a carrot is cheaper today than yesterday if it is the first time you shopped for a carrot? No? Me neither! Make no assumptions. Follow that price every day the same way you do gasoline. You are bound to learn something about when it is cheap/expensive. Also, don't expect to know about the prices of everything in the store all at once. If you start out with only one you will be fine.
This may sound too difficult or slow. Patience. Observe. Practice. Reflect. Repeat.
Ask as many questions as you can think of. When those are exhausted... Ask some more!
Charting, in my experience, has been subtractive. The less on my screen the better. I understand this is not so for everyone. That doesn't bother me in the least, good on you! I am amazed at both the rainbow chartists and the Level 2 traders. What I think brings us all to the same level is 'The Deal'. Without a deal none of us will make a profit.
Edit 12/15/2019:
I have color-coded all my charts for ease of interpretation. Each color signifies which TF I have taken the information from. Levels are refined on the TF immediately below them.
Purple = Weekly
Red = Daily
Blue = 4H
Green = 1H
What is trading? Is trading really sitting at a desk or phone watching charts for hours on end to click a green or red button and collect the resulting profit? Perhaps it is more than a couple of averages crossing or violated deviation envelopes. What if successful trading is, simply put, getting the best price for the product you are wanting to purchase?
Let us say you are going to your local market to pick up tonight's dinner. If you are like me you have a set budget and will stay within your purchasing power to procure your meal. Will you grab the first thing you see regardless of its price? Would you not rather get the best 'deal' and locate the in-season produce thereby stretching your money as far as possible? In fact, you would shun the overpriced apples, in favor of the 'on sale' bananas, potatoes, what have you.
Perhaps we as traders become blinded when we first see those flashing lights and all the multitude of squiggly lines. Did you choose candlesticks or line graph? Are your settings the same as mine? It doesn't matter! What you should be looking for is the sign over the shaving cream that screams, 'Half Off Today Only'! If you are an extreme couponer then you have the mindset to be a GREAT trader!
I would wager every one of us notices when the price of Gasoline moves up 20cents. And we equally pay attention to the opportunity to buy gas 15cents cheaper at the station across the street. Is trading really any different? If only we applied these same skills to trading we would be far ahead. Instead, we believe that we 'know nothing' about trading and listen to every person that comes along that possesses a flashy suit and smile. You already know how prices work! Don't you? When it is low, buy! That is what you do every day!
You are probably thinking, "How do you know when a currency is low or high?". Here is a question for you. Do you know if a carrot is cheaper today than yesterday if it is the first time you shopped for a carrot? No? Me neither! Make no assumptions. Follow that price every day the same way you do gasoline. You are bound to learn something about when it is cheap/expensive. Also, don't expect to know about the prices of everything in the store all at once. If you start out with only one you will be fine.
This may sound too difficult or slow. Patience. Observe. Practice. Reflect. Repeat.
Ask as many questions as you can think of. When those are exhausted... Ask some more!
Charting, in my experience, has been subtractive. The less on my screen the better. I understand this is not so for everyone. That doesn't bother me in the least, good on you! I am amazed at both the rainbow chartists and the Level 2 traders. What I think brings us all to the same level is 'The Deal'. Without a deal none of us will make a profit.
Edit 12/15/2019:
I have color-coded all my charts for ease of interpretation. Each color signifies which TF I have taken the information from. Levels are refined on the TF immediately below them.
Purple = Weekly
Red = Daily
Blue = 4H
Green = 1H