“Will traders continue to sell or will they buy?”
Financial markets continue to remain volatile and it was comforting to see some buyers come back into the US markets after the substantial falls on Friday and Monday. I don’t believe the sell-off is finished and I continue to anticipate further declines in global stock indexes in the first quarter of 2018. It would be highly unusual after such steep declines on Friday and Monday that the selling is done. The US Market rallied 25% in 2018 vs the local Australian stock market that rallied 7% and a correction on US markets is a high probability now hedge funds and investment banks have shown their hands in recent days. They anticipate fixed income returns to be higher and they will continue to diversify some of their holdings into fixed income and out of stocks.
Right now, the major players are trying to feel out what other Traders are potentially going to do and they will be reluctant to enter significant orders after such steep declines on Monday and Tuesday. The sum of your trading success over time is going to come down to how disciplined you are with respect to how you manage risk and reward and continue to step into the market when your trade setups present. You will never know exactly how traders are going to behave once you enter your trade and its other traders (investment banks and hedge funds) that will determine whether you are successful on an individual trade. A lack of control and playing a probability-based game over time is something novice traders find difficult to deal with and many of them fight and fight trying to think they can improve trade positions and influence their outcome when in reality they can’t. There is every reason you should know why the price is moving and by learning about why the price is moving it will make you a better long-term trader when it comes to playing the probability game over a series of trades. Remember it’s not about how many times you are right or wrong. It comes down to what you make when you are right vs what you lose when you are wrong. That’s the secret to trading success my friends.
With TIA’s trades whilst a wave formation is still intact even if a trade is taken out of the market (GBP v NZD) a pending order can still be re-entered on the same currency pair if price travels back through the Daily Trading Plan price. Therefore, a GBP v NZD long pending order can be re-entered so please refer to the video update for full details.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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