Is Trading During Volatile Markets Just Gambling?
Not at all, especially if you remember to always trade when the market tells you to based on prevailing sentiment.
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We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
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We just have a quick question here from Stuart, who asks, with all of the uncertainty in the market right now, and all the moving parts going on, have trading become more like gambling recently?
So, Stuart, this is a fantastic question. And I think this question addresses a very important point regarding conviction, as well as confidence in our trading.
Now, it is certainly true that times like this are trickier to navigate, but it is also an extremely valuable time for shortening our learning curve, as there's so many market dynamics in play right now, that you're basically exposed to a vast array or micro-fundamentals in a very short space of time. So it's a great time for learning to see exactly how different markets correlate to each other, and how the different markets basically affect each other. Especially when we see divergences when we're not expecting to see them, and just as a quick example now.
Apart form the obvious benefit of shorting the learning curve, a time like this is actually a great time for cementing one of the most important aspects of trading, and that is making sure that you're always staying on the right side of probability.
So what I mean by that is making sure that before you pull the trigger on any trade, have you gone through the current analysis check?
So are you trading, if you're taking a day trade, for example, did you make sure that you're pairing the strongest currency against the weakest one? Have you considered the potential risk factors that can change the buyers?
So if that thing hits the wires, you know, okay, this is my signal to liquidate or get out. Are you trading in line with the broader macro-fundamentals? And if you're not, if it's just short term, what do you need to be aware of in terms of the bigger picture that can affect that trade? And the most most most most important point to take from an environment like this is am I trading fresh and clear and no-brainer sentiment shift moves that you know will move the market.
So if we have the patience to wait for these type of clear fresh no-brainer sentiment shifts, I would say that trading is definitely not like gambling at all. If we're just jumping in on any type of sentiment without knowing how it will affect the market, of course, that is starting to lean more towards gambling.
The key is having the patience. Waiting for those events that you know is gonna move the market. You know exactly how it's gonna move the market. So you're not caught by surprise, and trying to jump in somewhere at the highs after the move has taken place. You know it as it happened. You know, okay, this is a great opportunity. You're gonna jump in. You're gonna ride it out for a couple, and then take off your position.
Now having said that, traders who during these times, of course, are trading without this type of knowledge, and basically just relying on flashing lights to tell them where to enter and when to close without any knowledge of why the markets are moving, and what to expect.
In my personal opinion, that is definitely leaning towards gambling, especially during a market environment like this. But if we know what's coming up, if we know how it's supposed to move the markets, then I think there's still great tradable opportunities in there. We just need to have the patience to wait for them, and execute them according to our process.
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If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
We just have a quick question here from Stuart, who asks, with all of the uncertainty in the market right now, and all the moving parts going on, have trading become more like gambling recently?
So, Stuart, this is a fantastic question. And I think this question addresses a very important point regarding conviction, as well as confidence in our trading.
Now, it is certainly true that times like this are trickier to navigate, but it is also an extremely valuable time for shortening our learning curve, as there's so many market dynamics in play right now, that you're basically exposed to a vast array or micro-fundamentals in a very short space of time. So it's a great time for learning to see exactly how different markets correlate to each other, and how the different markets basically affect each other. Especially when we see divergences when we're not expecting to see them, and just as a quick example now.
Apart form the obvious benefit of shorting the learning curve, a time like this is actually a great time for cementing one of the most important aspects of trading, and that is making sure that you're always staying on the right side of probability.
So what I mean by that is making sure that before you pull the trigger on any trade, have you gone through the current analysis check?
So are you trading, if you're taking a day trade, for example, did you make sure that you're pairing the strongest currency against the weakest one? Have you considered the potential risk factors that can change the buyers?
So if that thing hits the wires, you know, okay, this is my signal to liquidate or get out. Are you trading in line with the broader macro-fundamentals? And if you're not, if it's just short term, what do you need to be aware of in terms of the bigger picture that can affect that trade? And the most most most most important point to take from an environment like this is am I trading fresh and clear and no-brainer sentiment shift moves that you know will move the market.
So if we have the patience to wait for these type of clear fresh no-brainer sentiment shifts, I would say that trading is definitely not like gambling at all. If we're just jumping in on any type of sentiment without knowing how it will affect the market, of course, that is starting to lean more towards gambling.
The key is having the patience. Waiting for those events that you know is gonna move the market. You know exactly how it's gonna move the market. So you're not caught by surprise, and trying to jump in somewhere at the highs after the move has taken place. You know it as it happened. You know, okay, this is a great opportunity. You're gonna jump in. You're gonna ride it out for a couple, and then take off your position.
Now having said that, traders who during these times, of course, are trading without this type of knowledge, and basically just relying on flashing lights to tell them where to enter and when to close without any knowledge of why the markets are moving, and what to expect.
In my personal opinion, that is definitely leaning towards gambling, especially during a market environment like this. But if we know what's coming up, if we know how it's supposed to move the markets, then I think there's still great tradable opportunities in there. We just need to have the patience to wait for them, and execute them according to our process.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
