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Did you ever have a lousy trading day? Have you ever been angry at the market on one of those losing days? Has it ever become personal and made you want to get back at the market for what it did to you? Did this make you feel like the market was your enemy? Did this make you feel like you were in a battle and try to beat the market only to repeatedly see your positions get stopped out? You are not alone as most traders have probably done this at one time but it is not something you want to repeat. This article focuses on forex trading as this is the market I am most familiar with but is relevant to just been about any other market. The market is not your enemy. It is not a living organism although sometimes it might feel that way. This is a time when the "market is my enemy" can take over. There are times when the price action may seem illogical, even irrational but the market is never wrong as it does not have a trading opinion. It is only a place where forex rates are set. It is the collective will of those trading the market. There is a term used in forex trading, the trend is your friend. The market is simply a collective place where trades are transacted. This can be illustrated by using the price action in the forex market on October 21, 2009 as en example. A good way to illustrate this is by using the price action in the forex market on October 21, 2009 as en example. The focus of the example will be on the EURUSD, which started the day by trying to correct and ended it by surging higher to trade above the pivotal 1.50 level. Keep in mind that the forex market is not your enemy.4889-1.5046. There was no apparent catalyst for the move up except for sharp moves up in commodities that seemed to feed off one another. This saw traders try to sell the initial spike up and then repeat trying to catch the top by selling at each pause. This was not the day to repeat this strategy as the EUR/USD continued to march higher. It is only a place where currency prices are set. You can’t believe the market is acting irrationally and keep selling at every pause. A market is a place where trades are transacted and prices set. You can’t believe the market is doing this to you and stiffen your back. You forget about what charts are saying, throw discipline out the window and become determined to catch the top by selling when charts are telling you to buy. A market is not a living organism although at times it may feel that way. The EURUSD corrects lower without you on board. Does this sound familiar? If so, then don’t repeat it. Step back when that feeling comes and take a deep breath. Walk away and come back with a clear head. Remember, the forex market is not your enemy. It is not a living organism. It is only a place where trades are transacted and prices set. When you trade and are on the right side of a trend, there is little anxiety, especially if you manage stops in a way that there is no risk of a loss.” Copyright (c) 2009 Jay Meisler
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Jay Meisler is a co-founder of Global-View.com, the leading forex discussion site for more than a decade and where traders from around the globe come for the latest breaking news, flows, rumors and trading ideas =>www.global-view.com
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