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LESSON: The Markets Generates Uncertain Outcomes

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]This is one of the reasons so many traders fail… the Forex markets are so very, very different to normal life and what we look to expect in normal life.

How to Look For, Expect and Deal With = Uncertain Outcomes

In life we get a lot of ‘unexpected’  events that pop up, but they just pop up. Normally for most of us, the lives we lead are pretty routine, doing the same things, on the same days, with the same people, at the same times.

For example; you may go to work, then lunch, back to work, then maybe a hobby or sport after work and home etc, you see where I am going right? Things are planned and you know what is going to happen because YOU make sure you are in control of it.

It is YOU who chooses what happens in your life, where you work, what you do after work, what you do on the weekend, if you watch TV at night or read a book etc.

The Markets DO NOT Work Like This!

In the markets you play by it’s rules. It is completely neutral.

This is something you are going to just have to get your head around and deal with, if you want to be successful. The markets produce random outcomes.

But how can they do this you ask? As I said previously every time we enter a setup we are entering with other people who have also invested in the same currency pair. Now we rely on these people to either make the price go up or down to make us a winner.

We can notice Price Action patterns that tend to repeat themselves over time and take advantage from this, but we can never be sure that each trade will be a winner. We can never be sure because no two trades will ever have the same people in the same trades doing the same things. Every other person in the market is a market variable so no matter how good the trade appears to look the market can always do something completely random; it is up to other people to make us a winner!

You need to let go in a sense, because if you stay trying to control the market you will stay forever locked trying to fix every trade and every mistake and end in an endless loop.

The markets can’t be controlled and are neutral which is an obvious statement, but is something that is a lot harder for some traders to actually carry out in their trading.[/text_block][/op_liveeditor_element]