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Coffee thought – Trading the chart?

by Gav Leave a Comment

Trading the chart?
Trading the Chart?

Just some thoughts when I am having my morning coffee in the rainy Melbourne.

Trading the Chart?

How should a trader use a price chart? This is just another question without an answer. Some traders claim themselves as “chart trader”. Yeah, give him a chart, he can trade his ass up.

Thinking in this way. We trade our view or opinion about the market. Trading, particularly, currency trading in my case, we are speculating. Yup, it is all about speculation. It is speculation, because you, in fact, nobody, know for sure which way the market is moving. Regardless of the time frame, you are trading off, you are trading your own opinion.

So, I know I am speculating. I know the price won’t necessarily reverse when RSI is over 70/30 or the MACD is crossing over some magic lines.  Then what?

coffee_roaster

Forming your opinion. Explaining to yourself why do you think Dollar sucked, and you should short it. 

I am talking about your own opinion, not the one from the talking heads on CNBC/Bloomberg or DailyFX.

Face it, there is really no expert in the trading industry. There are just a bunch of people who know more jargon, reading more news, and writing more craps than you do. Disagree with me? That’s your problem.

Now use the price chart as a roadmap. 

So, you have formed your opinion. Cool. But do you know where you are?  You gotta know your current location before start driving to your next destination.  Here is where the fancy technical analysis comes in. Start confusing yourself with the trendlines, CCI indicators, pivot points, or some chicken indicators.

That’s part of the process. And nothing is wrong with that. As long as you are convinced, and you know where you currently are, and where you are heading, they are all good.

Stop or being stopped at some points is just part of the game.  We evaluate , and decide the next move. Well, at least, that’s how I trade.

Crap, I think I talked too much today. Enjoy your weekend.

Filed Under: blogs, Learn Trading Tagged With: coffee thought, FX, Trading Journal, Trading Lessons

Reader Interactions

Comments

  1. sergipavl says

    at 4:31 pm

    True. We don’t trade the market. We trade our opinion of the market.

    First, in masters’ case their doxa is close to knowledge. That’s why they always win.
    Second, it’s possible not to trade opinion) Trading the market is contrary to trading opinion. Read Elder)

    How is it in Melbourne?)

    Reply
  2. sergipavl says

    at 3:31 am

    True. We don’t trade the market. We trade our opinion of the market.

    First, in masters’ case their doxa is close to knowledge. That’s why they always win.
    Second, it’s possible not to trade opinion) Trading the market is contrary to trading opinion. Read Elder)

    How is it in Melbourne?)

    Reply
  3. Gav says

    at 10:42 pm

    Melbourne is cool and cold. A summer with 15 degree Celsius, what do you think? 🙂
    Absolutely perfect weather for trader. It always keeps you cool.

    Reply
  4. Gav says

    at 9:42 am

    Melbourne is cool and cold. A summer with 15 degree Celsius, what do you think? 🙂
    Absolutely perfect weather for trader. It always keeps you cool.

    Reply

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My Name is Gav.
I am a Father, Husband, Trader, And Blogger. A serious coffee addict. I started training since 2005, mainly on FX and Futures.

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