I always hear a lot on various chat sites about the markets and the old adage is batted about that the markets are based on fear and greed. Traders beat themselves up when they get out of trade too early (fear) only to watch it run. They beat themselves up when a good runner turns into a loser because they didn’t take profit (greed) in fact it’s amazing us traders aren’t black and blue considering the amount of times we berate ourselves. The whole problem with our trading and why we aren’t in profit is because we are fearful and greedy. We then read hundreds of books on psychology and how we can control our emotions. We want to turn ourselves into lean mean fighting machines. Super robots with no emotion-we seek out mechanical trading techniques that will promise us no more emotions in trading. No longer will we be shouting at our screens-no more curled up in a ball under our desk.
But is it really our physiology that’s at fault or is the market just one crazy bitch that can’t be tamed? Don’t tell me that the thought hadn’t crossed your mind at some point. We have all gone to bed thinking that but we still wake up in the morning with renewed hope (or disillusion) and try and make sense of it all. After all we don’t want to be beaten by the markets because that would make us feel very stupid after all the work we have put in (fear) and if we get it right it could reward us massively (greed). Anyway I am digressing. What I want to know is-ARE THE MARKETS BASED ON FEAR AND GREAD. Well the way I see it is when looking at the charts is that yes and no. There are moments of fear (that whacking great red candle) and moments of greed but for most of the time in-between these periods the market is just doing its humdrum stuff, which is collecting orders and filling orders. Nothing more, nothing less. There are enough pips for everyone during these times, you don’t need those volatile moments that have you climbing the walls or jumping for joy. They are just moments, what I think we need is those times in-between when the market nicely ticks up (or down) for days on end and we can relax and think about logical places to take profit or add to positions. We don’t need to constantly question ourselves or find books to tell us what we are doing wrong or right. If you took profit too early than at least you took profit. If you let a winner turn into a loser than you are an idiot. It’s that simple…..XspacecowboyX
But is it really our physiology that’s at fault or is the market just one crazy bitch that can’t be tamed? Don’t tell me that the thought hadn’t crossed your mind at some point. We have all gone to bed thinking that but we still wake up in the morning with renewed hope (or disillusion) and try and make sense of it all. After all we don’t want to be beaten by the markets because that would make us feel very stupid after all the work we have put in (fear) and if we get it right it could reward us massively (greed). Anyway I am digressing. What I want to know is-ARE THE MARKETS BASED ON FEAR AND GREAD. Well the way I see it is when looking at the charts is that yes and no. There are moments of fear (that whacking great red candle) and moments of greed but for most of the time in-between these periods the market is just doing its humdrum stuff, which is collecting orders and filling orders. Nothing more, nothing less. There are enough pips for everyone during these times, you don’t need those volatile moments that have you climbing the walls or jumping for joy. They are just moments, what I think we need is those times in-between when the market nicely ticks up (or down) for days on end and we can relax and think about logical places to take profit or add to positions. We don’t need to constantly question ourselves or find books to tell us what we are doing wrong or right. If you took profit too early than at least you took profit. If you let a winner turn into a loser than you are an idiot. It’s that simple…..XspacecowboyX
