Looks like it's going to be a bumpy ride!
Welcome to - The Economic Fundamentals of 2013 -
Sounds like a very dry subject doesn't it - The Economic Fundamentals of 2013 - Frankly it is. But it's no all bad news.
Here's the bottom line. . .
The markets are never the same from one day to the next. However, history repeats itself all the time. If it didn't, nobody would have a reliable trading method. So - why care at all about - The Economic Fundamentals of 2013 - Surely, it can't be the same as last year. But at the same time, we expect history to repeat itself. Confused?
Welcome to the paradox that is the markets.
If you read - The Economic Fundamentals of 2013
- The Economic Fundamentals of 2013
You'll notice - The Economic Fundamentals of 2013 - is all about the slowing down global economy. By all means read - The Economic Fundamentals of 2013 - I dare you. But to save you a lot of time, it's basically telling us that the main thrust of this year is to expect an economic slow down. This shouldn't come as a surprise to anyone who reads the newspapers or watches television news. Lets face it. Why should - The Economic Fundamentals of 2013 - be radically different than 2012? How much difference can one year make, given the depth of the on-going recession?
S0 - what does this mean for us as currency traders?
Does it mean we'll have a lot less opportunity to trade? Or perhaps, the same amount of opportunities, but with fewer pips to pursue.
One things for sure. After reading - The Economic Fundamentals of 2013 - I can see no significant change for price action. The Economic Fundamentals of 2013 does not talk about this, I know. But prices will continue to go up and down, no matter what happens to the global economy If prices fall, there's always a retracement to that fall. So the retracement can also be traded. Depending on the time frames you use, it will present us with plenty of opportunity. The long term picture for the global economy, is not something we have to worry about, if we're short term traders. That's where we, as shorter term traders, break the paradox. Suddenly - The Economic Fundamentals of 2013 - stops being such a factor to us.
Of course, if you're a longer term trader, which is really an investor, rather than a trader, the - The Economic Fundamentals of 2013 - it's going to be a very bumping read. Believe me - The Economic Fundamentals of 2013 - is never going to be a best seller. But it does have value to investors.
Having said that, long term trading generally is a bumpy ride. But it doesn't have to be that way. You can give yourself a very valuable edge. In other words - short term trade.
Yes history repeats itself, but only generally. Not specifically. This is what gives us the edge.
Dipping in and out of the markets as they move with momentum, is a definite advantage. Being small and nibble helps use avoid the big draw-downs. OK, it does mean we have to put more effort into trading, than just sitting back and hoping the long term trend will take care of us. Personally, I've never been very comfortable hoping things will turn out the way I want them to. I'm much happier taking an active role, and watching the way the markets are moving in the shorter term to take advantage of those changes. This is not something you'll read about in - The Economic fundamentals of 2013 - In fairness, that's not it's job.
The Economic Fundamentals of 2013 - is designed to offer a longer term view.
There is no mention at all in - The Economic Fundamentals of 2013 - regarding the advantages of moving in and out of the markets. Using the momentum of strong trending markets to avoid the slower moving pairs, takes away the general slowness spoken about in - The Economic Fundamentals of 2013 - As I said at the beginning, It's not all bad news. Slowness does no have to mean a lack of opportunity. But it does mean putting more effort into trading generally. Being more choosy about the currency pairs we choose to trade. Insisting on finding pairs with the maximum momentum, and only trading those pairs. It's not difficult when you know what to look for. Reading a chart is not rocket science. The signs are always there to be found. You'll just got to know what to look for, and how to act on it. http://www.bobwelfare.com/bob-welfare-our-services/
This of course takes more time than just holding onto a trade for months at a time and hoping it will work out for you. But that has dangers associated with it, well know to many people. It all boils down to how much you value your time and how you want to spend that time. For me, time studying the charts, to make sure I only get involved with currency pairs that are showing a lot of momentum is better that time worrying if things are going to work out on their own, given enough time for it to happen.
After reading - The Economic Fundamentals of 2013 - This point slaps me in the face.
Please read - The Economic Fundamentals of 2013 - as see if you agree.
As I said. The Economic Fundamentals of 2013 - won't be a best seller. But is does have a message for you
