If there's one thing I learned from this week's market action, it's that I should never NEVER doubt that anything can happen. Prior to this week, I was ready to bet my bottom dollar that there was no way that things in the euro zone could get better. Then BOOM! Coordinated central bank easing.
Who could've possibly predicted that?!
Because I never saw it coming, my supposedly home-run short AUD/USD trade got stopped out and I lost nearly half of the gains I made for November. So much for risking more on trades I'm more confident in. Sometimes I can't help but think that it's the more obvious trades that are more likely to fail. Then again, it's wrong to assume that the markets are out to get me... or is it?
I did manage to score a couple of wins (EUR/USD and NZD/USD) this week, but just enough to keep my account in the green. Whew!
I'm pretty sure this brand-new month has a lot of surprises in store so I'll have to keep reminding myself that anything can happen. Expect the unexpected, prepare yourself for the worst, and hope for the best!
On Friday December 2nd, 2011 at 03:13PM by IamXavi - Like - 0 People
One of the methods that help me think in uncertainty is that everything I already know is priced, therefore my reasons for a trend reversal or continuation are probably not longer valid, is very weird to trade this way, but we're not here to make forecasts or be analyst, we're traders, we must be ready for anything.
On Friday December 2nd, 2011 at 03:27PM by YankeeClipper - Like - 0 People
At the end of the day IamXavi, you're absolutely right. Oh we may like to think we're analysts, technical or fundamental but what we see on the charts has already been through the banks and high rolling traders and the best we can hope for is to catch a wave and ride it. We can no more predict/forecast the market than a surfer can predict nature's waves... Just keep an eye out for the best one we can catch. :)
On Friday December 2nd, 2011 at 03:59PM by IamXavi - Like - 0 People
That was poetic YankeeClipper, I couldn't said it better!
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