Always factor in the possibility of the market’s development
Hello Traders:
First educational video since I went away 8 months ago :)
This topic has been brought up many times, and I wanted to prepare this video for those who are still struggling with the concept of possibility in the market.
Many inconsistent traders, when taking losses, often look at their strategy as the reason why the losses occurred.
They often fail to see that the real problem often lies with emotion, psychology, risk:reward, rather than strategy.
A good rule of thumb when approaching the market is to have a clear mind and expect anything can happen, regardless of technical analysis.
That means, even if a certain setup is developing, there is still probability that you will take a loss after entering. No strategy can give you 100% win rate.
No matter how clean the setup is, or how it mimics the past price action or setups, the market can still not go with what you wish it to go.
So, when we are waiting for a setup to happen before taking the trade, try to think on the other side as well.
If you are looking for a long setup, also think about whether there is a possibility of a sell, and does sell also make sense.
As an example, here on USDJPY, I have seen traders share their bullish view and bias.
Certainly nothing wrong to follow through with your own view and forecast, however, I would suggest to also look into the possibility of a sell potential. Does the sell potential also make sense ?
What if both bullish and bearish outlook exist ? then does it make sense to execute the trade ?
First educational video since I went away 8 months ago :)
This topic has been brought up many times, and I wanted to prepare this video for those who are still struggling with the concept of possibility in the market.
Many inconsistent traders, when taking losses, often look at their strategy as the reason why the losses occurred.
They often fail to see that the real problem often lies with emotion, psychology, risk:reward, rather than strategy.
A good rule of thumb when approaching the market is to have a clear mind and expect anything can happen, regardless of technical analysis.
That means, even if a certain setup is developing, there is still probability that you will take a loss after entering. No strategy can give you 100% win rate.
No matter how clean the setup is, or how it mimics the past price action or setups, the market can still not go with what you wish it to go.
So, when we are waiting for a setup to happen before taking the trade, try to think on the other side as well.
If you are looking for a long setup, also think about whether there is a possibility of a sell, and does sell also make sense.
As an example, here on USDJPY, I have seen traders share their bullish view and bias.
Certainly nothing wrong to follow through with your own view and forecast, however, I would suggest to also look into the possibility of a sell potential. Does the sell potential also make sense ?
What if both bullish and bearish outlook exist ? then does it make sense to execute the trade ?
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