TRADING METHOD FX FOREX IS A TUG OF WAR
And we all want to be on the winning side. Which side to join? When to join?
Those are the two critical decisions FOREX traders must make
Growing up in rural NE Alabama in the post depression/World War II era we did not have the extensive recreation facilities so common today. Our parks were mostly cow pastures and our equipment was whatever we could get our hands on at the moment. A large rope was not too hard to come by so “Tug of War” became popular game for our occasional gatherings.
The rules of the game were pretty simple: participants formed into two groups that were evenly matched in
number the number of members and the relative strength on the individuals. Each group grabbed one end of the rope and a line was drawn in the middle between them. The “Tug of War” began – the objective of which was to drag the opposing group past the center line.
As simple as seemed at first, psychology soon entered the picture. We soon learned that
“faking” a
quick loss of a little bit ground, followed by a sudden “reversal” of tugging could sometimes catch the
some other group off guard - and the reversal would often not only quickly gain the intentionally lost ground but a sizeable chunk of additional ground as well.
This “fake and reversal” soon became a major part of the “Tug of War” game psychology.
Sitting in front of my computer today and watching the Forex markets reminds me of those “Tug of War” games. I often see similar scenarios taking place in Forex
FX TRADER MAGAZINE October - December 2013 71
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92