Most Traders Can’t Feel the Heartbeat of the Market
I’ve been taking a closer look at the trading activity of the trader’s that have joined the practical assessment without coming through our training programme, and it’s clear to me the majority of them don’t understand the dynamics of the financial markets.
And I’d say if you took a large cross-section of the retail trading market you’d find this is a common occurrence. I also think it’s a major contributing factor to their overall ‘below average’ performance.
Why Have I Come to this Conclusion?
Trading volume around 6-8pm in all timezones is very high. Most traders login to their trading accounts when they get home from work or when they have some spare time and just start trading. No Rhyme, no reason… they just want to make money and they start banging away without a thought of what’s going on.
They try and push the market around but instead they are the ones that get pushed around!
Now the chance of you randomly logging on and catching the currencies at a key level or right on the release of some major news and getting the direction right is a long shot at best.
ALL of the major economic data releases come out during the day, so if you’re logging on after work the likelihood is you’ve already missed them. The move is already over!
The Outcome is Always the Same
You start trading and get the wrong end of the move and have a few quick losses. This is where things start to go pear-shaped but instead of turning their screens off they double up, triple up, quadruple up until the account is empty.
There is no performance assessment to work out where things went wrong. Instead, they reset their trading accounts and prepare for another crack the next day.
There will be no change to the outcome until they take the time to understand the market and feel the heartbeat of the market.
How the Market Moves with a Heartbeat
The Fundamentals (the economic data & central banks) are the heartbeat of the market. There’s a set schedule to their release and that’s the most important thing to tune into.
Traders at all the banks sit patiently and wait for these releases and that’s because they know when the data is released the markets could potentially move in a specific clear direction.
So pre-release they prepare for the potential outcomes, load up their trading platforms and wait.
The release comes out and they jump all over it and that’s why the currencies move. But 30 minutes or an hour later they slow down as the move has occurred and there’s nothing else to do.
The Bankers go home around 5 pm after all the action has calmed down. Strangely enough, that’s when the retail traders sign on and start hacking themselves to a slow death.
The retail traders are trading at the wrong time!
Try Surfing: If you can surf then you’ll understand what I mean
Now I’m a regular surfer. I find it extremely exhilarating, relaxing, calming and grounding. Why? To surf, you have to slow down to the heartbeat of the ocean.
You have to WAIT for the waves to come and when they do you have to feel the momentum behind you before you can pop up and have your fun.
Without the wave and the momentum, you are just sitting there waiting. Waiting, breathing, relaxing….. thinking. Thinking of the next wave and what maneuvers you might do.
If there are no waves coming it’s pointless paddling around and wasting energy. You’re just going to get frustrated and disappointed and this is exactly what traders are doing when they log in and start trading at random times or after they’ve finished work.
Wait for the wave and enjoy the ride!
How Can You Remedy this?
Well, there are two things you can do.
First, Get some proper education under your belt so you not only know how the market works, but so you can take advantage of the fundamental releases, or at the very least understand them!
Second, prepare to trade during the day when the releases come out and stop trading ‘just because you’ve got spare time’.
We can help with the first whilst you’ll have to try and shift your schedule around to manage the second suggestion.
We have hugely subsidized our complete trading program to allow all traders to access professional forex trading training. But not only that we’ve added a bunch of bells and whistles to help you along the way.
So not only do you get access to all the online courses but you now also get access to all the trading software, the $100K practical assessment as well as a full tuition rebate.
So before you sign up to the practical assessment consider your options and your potential to succeed.
Ask Yourself the Question: Can I feel the heartbeat of the market?
If the answer is no then you might want to consider the complete online forex trading course!
I guarantee you won’t regret the decision to sign up!
And next time you’re in Byron Bay give me a call and we’ll go catch some waves!