Trading Forex

Trading forex is a funny thing. Yes, funny, and by this I want to say that it is funny how people, even if failing so many times, are still looking for that successful recipe that should bring the long awaited financial independence. So in order to achieve that, every time something does not go as expected, (markets are changing for example and the trading strategy seems to not work anymore), a new idea appears all of a sudden and new hopes as well.

But markets are changing. They always did and they always will. If you look back at how people traded the financial markets twenty year ago you are probably going to laugh. Well, I wouldn’t be surprise for the same to be valid twenty years from now. So regardless of humankind evolution, markets are still there, ever changing, or maybe not really changing, but adapting to the inputs we’re bringing to the trading table (algorithms, high-frequency trading, more people involved the in the business once the online fx trading is available, once all these online broker reviews, online eBook reviews, etc., are available to the retail trader).

Financial markets are the result of people’s own behaviors, and such moves may mean markets are changing. In fact, it is us, mankind, that are changing, and markets only adapt to our needs.

The foreign exchange market is so complex and volatile, and even the most experienced trader faces moments of hesitation. Sometimes the price has the tendency to move on such little news that one doesn’t really know what was the case for the whole move in the beginning. And sometimes markets just seem to consolidate around a certain level for so long as it appears there is nothing in this world that would make price moving from that level. These are classical examples of human nature playing tricks on traders. It is easy to write about staying ahead of the game, be patient, don’t be greedy, cut losses, etc., you know, all that advice you find when searching about how trading is. But there is a totally different story when you are supposed to actually do all those things.