Understanding Forex !!Market behavior }

Understanding Forex !!Market behavior } Get link August 18, 2019 Humans tend to make decisions about the future by ~~looking at the past and for good reason; this is usually a very helpful behavior»» that can prevent us from repeating the same mistakes over and over However, although this evolutionary instinct has helped us move forward over the centuries, in trading, Forex School by Learn Bangla it tends to work against us We call ourselves “optimists” when we learn from the past,₱₱ and indeed that is typically a very optimistic thing to do, but in trading, in an environment with so many random outcomes, it can make us “pessimists” very quickly Allow me to explain with an example…We≠≠ tend to think that what happened recently in the past will impact what is about to happen next, and in MOST situations that would be true However, in trading, there is a €€for any given trading edge Forex School by Learn Bangla So, this means you never know for sure which trade will win and which lose, even if your edge is say 80% profitable over time Even in a very small sample size of 3 winning ¥¥signals and 2 losing signals on a random section of a chart, a trader could take 1 of the losing trades in that series and get mentally “shaken out”, meaning they freeze ¡¡¡ and skip the next perfectly good signal purely due to the In other words, they are being overly-influenced by the Forex School by Learn Bangla past / recent trade’s results when in reality; those outcomes have little to nothing to do with the₱₱ next trade’s outcome We can then see there were back-to-back pin bars that ended up losing So, had you taken these two pin bars, if you let regency bias “get you”, there was a Very slim chance you were taking the last pin bar to the right on the chart; which has ended up working ℷℷℷ quite nicely as of this writing This is proof of why you need to continue taking trades that meet your , despite recent trade failures₻₻ or outcomes that you didn’t like You (nor I) can see into the future, so to try and “predict” the outcome of πππ your next trade based only on the last, is not only futile, but stupid Get link

.

.

from WordPress https://ift.tt/30A2WHG
via IFTTT