The search for the ‘Holy Grail’ of trading is a pointless exercise, as any experienced trader will testify there is no perfect strategy “out there” waiting to be discovered. Although history never repeats it often rhymes and we can clearly visualise that rhythmic rhyming on our charts when certain repeating indicator patterns throw up high probability set ups offering up opportunities, time after time..
This is hardly a revelation, charts could in fact be a personification and true representation of human activity in the market place, and minus algorithmic intervention this theory holds even more traction. Once we’ve begun to identify certain repeating patterns (that could offer us profitable opportunities) how to take advantage of these repeating opportunities represents a critical stage in what I term our PTD, our “personal trader development” and will undoubtedly help to determine your future success..
The two words “consistently profitable” represent more of an elusive Holy Grail search than the search for a perfect indicator based or pattern based strategy, and yet this two word summation, of the all encompassing reason to trade, is both misunderstood and ignored.
When asked to separate the two words, and rank them in importance, most traders would place profitability ahead of consistency. However they’d be wrong, you cannot possibly enjoy profitability without consistency and the really great news is that if you work on the consistency first and get that ‘right’ then the possibility that profitability will follow is greatly enhanced. So what do we mean by consistency?
Firstly consistency is synonymous with discipline; be disciplined and consistent in your approach to trading. If there are times of the day when your chosen strategy has a greater probability of positive expectancy, then have the self discipline to ensure you’re ready and in a position to take advantage of these opportunities when they’re offered up.
Be consistent with your strategy; avoid the temptation of radically altering your strategy or adopting a new one due to experiencing a series of losses. Accepting a series of losses is an inevitable part of trading, you have to develop the resilience to not let this affect your decision making. As many experienced and profitable traders will testify, “look after the downside and the upside will take care of itself”.
Be consistent with your trading rules; if you’ve chosen the highest high or the lowest low of the session or previous trading session to place your stop, then maintain focus and stick to the plan and execute it.
Be consistent with your take profit orders; there will be countless times when you exit to see price shoot further in the direction you determined, however, be satisfied with your pip take out of ‘the move’, as night follows day price will probably revert back to a mean average close on where you chose to exit, this is particularly common if you’re on a swing trading strategy.
Consistency is not only synonymous with discipline in trading terms it’s also closely related to respect, particularly self respect. Not only must we respect the market it’s also of vital importance to respect the industry you find yourself in. Quite simply aiming to improve every small aspect of how you approach your profession is the standard you’d no doubt demand of yourself in any industry, as a self employed trader these demands are magnified.
In taking a consistent, disciplined and respectful approach towards all the facets of your industry will provide you with a solid platform for future success. Adding effective strategies then becomes straightforward. Once you marry these two concepts you will fashion an edge to your trading that can be exploited profitably for many years to come.
Daily Market Commentary by FXCC - Which Predictions Are More Likely To Come True In 2012, The Maya Or The IMF?
The 2012 Maya phenomenon comprises a range of beliefs which, according to many, will cause cataclysmic or transformative events to occur on December 21, 2012. This date is regarded as the end-date of a 5,125-year-long cycle in the Mesoamerican Long Count calendar.
Various astronomical alignments and numerological formulae have been proposed as happening on this date, although none have been accepted by mainstream experts.
A New Age interpretation of this transition is that it marks the start of time in which Earth and its inhabitants may undergo a positive physical or spiritual transformation, and that 2012 may mark the beginning of a new era. Others suggest that the 2012 date marks the end of the world as we know it or a similar catastrophe.
Scenarios suggested for the end of the world include the arrival of the next solar maximum, or Earth’s collision with a black hole, a passing asteroid, or a planet called “Nibiru”.
Scholars from various disciplines have dismissed the idea of such cataclysmic events occurring in 2012. Professional Mayanist scholars state that predictions of impending doom are not found in any of the extant classic Maya accounts, and that the idea that the Long Count calendar “ends” in 2012 misrepresents Maya history and culture. Astronomers and other scientists have rejected the proposed events as pseudoscience, stating they’re contradicted by simple astronomical observations.
Doomsayers foresee doom and destruction, that December 21st 2012 will be the day the Earth will be destroyed. Some think it will be due to nuclear war, some say it will be because it’s biblical judgment day. Even others take the ending of the Maya calendar more literally, and claim the Universe will just cease to exist.
The Maya divided their Long Count into five lumps of time, called Great Cycles. And every cycle had a well defined end. For example, after period number one, a Jaguar came by and ate everyone on Earth..according to the Maya..
The second cycle ended in air, the third in fire, the fourth in flood. And what about the last period, the stretch of time we’re currently in? The Earth will be destroyed by earthquakes, is the interpretation some scholars give to the sketchy remains of the Maya culture.
Actually the Maya’s never predicted anything concrete about 2012. That myth may have originated due to our ignorance of Maya culture. When the Spanish ransacked the land, they burnt literally every Maya book they could find. Only a handful of scriptures survived. And in them, there’s not a clue about what happens when the Maya calendar ends, perhaps that Jaguar in the first cycle ate their homework.
So what awaits in 2012 is open to debate and interpretation, as with so many open questions, countless doom preachers, semi-prophets and other experts have popped up to provide semi coherent answers. The interpretation you hear most, that 2012 will mark the coming of a new, glorious age of wisdom and peace, the Age Of Aquarius at last, with a world full of peace, love and understanding is as good as it gets.
The reasoning behind this is actually not that farcical, The Maya’s didn’t believe in endings, their conception of time was circular, with every end being the beginning of something new. So, 2012 shouldn’t be an exception. The Maya’s had a highly developed philosophy of the cosmos. They saw the cosmos as the true mother of things. Consequently, the Maya’s thought the cosmos is all around us, and within us. Every plant, every animal, every man is sheer Cosmos.
December 21st 2012 may be the day on which this inner cosmos is reconnected to the divine outer cosmos. The Sun will mount its unique position to form a gateway between the Universe and the souls of every living creature on Earth. Our linear conception of time will crumble and with that fear and hatred will vanish. It will be purification at it’s very best, when everyone is soaked in cosmic understanding and divine love.
So there it is: on December 20th, you’ll threaten to kick in your television if your team’s striker fails to hit the target, you’ll yell at your spouse and cheat on cards, or cheat on your wife and yell at the poor hand you’ve been dealt, but the very next day you’ll be calmed down into a peaceful Age of Aquarius sheer Cosmos hippy, with only love and understanding to guide you for the rest of your life. Despite it being bleak mid-winter, it’ll be the summer of love for all humanity..
And what of the IMF prediction, is it equally gloomy, does it predict the end of days for capitalism as we know it, or does it predict a new dawn? Er..well no, it’s esoteric predictions are not quite as universal or as ‘loved-up’. The International Monetary Fund’s forecasts having been leaked, (as usual), ahead of official publication next week make for a grim 2012..
Recession is imminent for the Eurozone given the 0.5% contraction prediction, all that remains is the carefully selected adjectives to be used by the EU commission (by committee and treaty) to describe the recession; feather lite, quiet, whisper, paper thin..?
The IMF slashed its global growth forecast for this year, blaming the eurozone debt crisis. It predicts that the world economy will grow by 3.3% rather than 4% as predicted previously. Italy’s economy is forecast to shrink by 2.2% and Spain’s by 1.7% as their tough austerity measures and weak bank lending plunge the countries into at least two years of recession.
The global recovery is threatened by the growing tensions in the euro area. The most immediate political challenge is to re-establish confidence and put an end to the euro area crisis, supporting growth.
The eurozone as a whole will shrink by 0.5% this year, compared with the IMF’s last forecast of 1.1% growth in September.
So who’ll come closest by December 21st, the Maya or the IMF? Well given that the Maya prediction is an urban myth, in as much as it doesn’t actually exist, it’s not a fair contest. However, the best outcome would be a union between the two; the harmonium of the new age, a dawn of a new realisation by the ‘powers that be’, married with a gentle recession from which the planet and it’s inhabitants could emerge re-energised and begin to flourish and prosper..oh and the renminbi to become tradable..
Well I thought I’d slip that in there as it stands about as much chance of coming true as the IMF or Maya prediction.
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