Forex Market Is In an Indecision Situation

Hello

After several months that forex market have been moving strongly because of the economic recession, it has come to an indecision situation. It means there is a balance between bulls and bears and the market doesn’t know if it should go up or down. On the other hand, almost all of the big traders (like the banks and big hedge fund companies) are waiting for the economical and political decisions in Europe and USA and it can be expected to see less volatility in the market until it finds its direction. We really don’t have to take any position everyday. If we see a signal we get in. If we don’t see a signal we just wait for a signal.

Tip of the day:

Trading is a all about making a decision: Should I buy or sell? Any trader has his/her own system to trade. A system is a set of rules that shows you the direction. It says if the price goes up or down. When you are developing a system for yourself and before you start trading with it, its signals and rules look so sharp and clear and you are confident that the system can make money for you but when you start trading with that system you will see that it doesn’t work in the way that you expected. Why?

One reason is that when you start trading, sometimes you can not see any signals for a long time whereas when you were developing your system and you checked its functionality through back-testing, it showed you hundreds of good and sharp signals. Then you go to live trading with such a background in your mind. Your mind tells you that your system finds a lot of signals but when you start live trading, you wait a lot to see a signal. This makes you pushed to take a position even when you don’t see a signal. You manufacture the trades whereas this is the market that has to give you a trade. This happens a lot for new traders and it is one of the important reasons of their failure. Experienced traders know the difference of back-testing and live trading. Their mind is not able to deceive them any more because they have already experienced this problem.

Keep in your mind that back-testing is fantasy because in just a few hours or even less you find all the signals that have been formed during a year. You don’t consider that it took a year for all the signals to form.

On the other hand, the functionality and accuracy of most systems can not be proven through back-testing because in back-testing you see the signals that have already formed but in live trading you see the signal while it is being formed. This makes a big difference. Additionally in back-testing you can see the next candles formed after a signal but in live trading you don’t know what will happen.

So be careful. Do not let your mind push you to a special direction. Sometimes we see several signals in a day and sometimes we can not see any signal for several days. This is normal.

Today signals will be posted in the below table at 17:00 EST which is 22:00 GMT. Make sure to be on time!

Announcement (00:18 GMT, 9 Feb): Ok! We are done for tonight. No more orders. Click here if you are late.

Further Reading: Before leaving our website, please take a look at the other articles we have published.

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