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Apr 3
8.7 There Are Clues All Around You

 

I believe there exists no “Holy Grail” for 100% accurate forex trading model. The quest for such system will continue forever. Forex traders from every where will continue to contribute for building forex trading model.
This will also prevent many traders to even enter this business because the foundation for this have to be built upon solid structure to hold.
If someone plan to build a house on a foundation of sand. Such structure would not withstand the test of time and will soon collapse. This is precisely true for forex trading today. Continuous improvement is required as the foundation for the system is weak. Continuous improvement is very much like rebuilding the house. If a system does not depend on improvement process to support, in such circumstance it may depend on wide margin for mistake that falls under the title of “lead/lag”.
On the other hand, if someone were to build a house on solid rock foundation, definitely such house will withstand the test of time. Similarly a system based on the facts of forex trading would not require any enhancement at all. Within itself It would be near perfect and would reflect forex trading market. But unfortunately no such system exists till to date. But enough information is available to establish a system that needs very little strengthening like the slight repair one might do on a house.
There are many clues around us to find such a house. Still so many of us by pass these clues without giving it a second thought. Today we have computers and its binary system functions like on/off, 1 - 0, true or false, yes or no and its decision algorithms is based on logical and, or , nor xor, similarly out mind focuses on black and white and has developed the tendency to ignore the gray that transitions the two. This gray is vital for clues and this is where the real forex trading market model is to be found.
Another simple example is the rotation of the earth as it revolves around the sun. Sun is the only source of life and we all take this thing for granted. As we go to sleep at night time when its dark, when we wake up in the morning we see light again. We know that sun warms one side of the earth during day time and cools the other side of the earth during night time. This transition is not instant like switching on the light and then turn it off immediately. There is a transition period between the two points that most do not realize. During this transitory period there is also a very important point and is simply defined as warm.
Before I can explain more to this article, I think another example is needed. For example, consider the light switch. When we turn it on or off, we only think in terms of light and dark, if supplied with power its on and if no power its off. And also the light bulb that is controlled by our act. Once you turn off the light and touched the bulb, you will still feel the heat as it takes some time to reach the room temperature. That is what we anticipate in the state of power off. But there is a transition between the two extremes that takes place before.
Or example, when commodities comes to our mind, we know they are necessities of life. These necessities are light, heat, water, air and food. They all pass through the transition of sow, reap and consumption. It is also important to know that too much of light and heat, water and food can destroy or very much alter the pattern. Humans intervenes to increase or decrease yields, although nature has already placed its regulatory function. It’s a saying that “Let Nature take its course”, as the earth slowly turns all around for transition from one season to another, and uncover the earth to other planetary forces that effect bodies from everywhere on earth, these are seas, plants and people.
The clues provided by nature itself is such a huger proportion that it is not possible for man to fully grasp and understand. This means that we are a long way from really establishing a forex trading model system that can entirely emulates market patterns that in itself is the outcome of natural marvel. On the other hand, the evidence we get by observing closely to the transitional course of action of the seasons and other non binary work of our universe will aid us in emerging a forex trading system model that can relate to what we observe in price action. if natural laws are not based as forex trading system model that is the real substance of life and a variety of graphical efforts to chart life, then the substance that they constructed for their forex trading system model on will not take into account the significant stages of life and will probably fail throughout these periods.
Natural cycle study is significant in build a solid basis. While it is possible to digitize the natural working to decide previous and forthcoming cycle patterns by computer, if the appropriate input is not provided the logical algorithm, you will get trash out. If you see things just as on or ff, true or false, then a significant component of input, the change itself, will be ignored and the outcome will again be trash out.
The world around us is analog and not digital. Although computers create digital forex trading models but first they run through analog power. Modems for communication purposes demodulates it to digital but only through analog modulation. For forex trading market system, before successfully digitalize it, first we have to create a system model of forex trading market behavior that best describes actual forex trading market events, first we will require to know more of the analog nature of the markets.
Observe the forex trading markets as an outcome of circumstances all compelled by natural laws. Find out the natural circumstances that govern explain why the forex trading market may move up or down in a given phase of time. Never halt at the obvious proceedings such as the weather or the emotions of man. Thoroughly study the subject and don’t take it for granted, for instance what controls the weather or affects the feelings of man. Forex trading market is not just a two dimensional representation. (price charts ? time and price). Forex trading market is multi dimensional just like the traders. If you try to apply just digital logic then your outcome will fall short of the best.
The clues are all around you. All you need is an open mind and in depth analysis of ideas and concepts. There is more than enough in this world alone that need to be find out. You need to consider them, to find ideal forex trading market model, a forex trading model you can depend on. Search for these clues as you would be searching for a buried treasure, and you will be enlightened in the way you are trading the markets as you keep on your hunt for the ultimate system.

I believe there exists no “Holy Grail” for 100% accurate forex trading model. The quest for such system will continue forever. Forex traders from every where will continue to contribute for building forex trading model.

This will also prevent many traders to even enter this business because the foundation for this have to be built upon solid structure to hold.

If someone plan to build a house on a foundation of sand. Such structure would not withstand the test of time and will soon collapse. This is precisely true for forex trading today. Continuous improvement is required as the foundation for the system is weak. Continuous improvement is very much like rebuilding the house. If a system does not depend on improvement process to support, in such circumstance it may depend on wide margin for mistake that falls under the title of “lead/lag”.

On the other hand, if someone were to build a house on solid rock foundation, definitely such house will withstand the test of time. Similarly a system based on the facts of forex trading would not require any enhancement at all. Within itself It would be near perfect and would reflect forex trading market. But unfortunately no such system exists till to date. But enough information is available to establish a system that needs very little strengthening like the slight repair one might do on a house.

There are many clues around us to find such a house. Still so many of us by pass these clues without giving it a second thought. Today we have computers and its binary system functions like on/off, 1 - 0, true or false, yes or no and its decision algorithms is based on logical and, or , nor xor, similarly out mind focuses on black and white and has developed the tendency to ignore the gray that transitions the two. This gray is vital for clues and this is where the real forex trading market model is to be found.

Another simple example is the rotation of the earth as it revolves around the sun. Sun is the only source of life and we all take this thing for granted. As we go to sleep at night time when its dark, when we wake up in the morning we see light again. We know that sun warms one side of the earth during day time and cools the other side of the earth during night time. This transition is not instant like switching on the light and then turn it off immediately. There is a transition period between the two points that most do not realize. During this transitory period there is also a very important point and is simply defined as warm.

Before I can explain more to this article, I think another example is needed. For example, consider the light switch. When we turn it on or off, we only think in terms of light and dark, if supplied with power its on and if no power its off. And also the light bulb that is controlled by our act. Once you turn off the light and touched the bulb, you will still feel the heat as it takes some time to reach the room temperature. That is what we anticipate in the state of power off. But there is a transition between the two extremes that takes place before.

Or example, when commodities comes to our mind, we know they are necessities of life. These necessities are light, heat, water, air and food. They all pass through the transition of sow, reap and consumption. It is also important to know that too much of light and heat, water and food can destroy or very much alter the pattern. Humans intervenes to increase or decrease yields, although nature has already placed its regulatory function. It’s a saying that “Let Nature take its course”, as the earth slowly turns all around for transition from one season to another, and uncover the earth to other planetary forces that effect bodies from everywhere on earth, these are seas, plants and people.

The clues provided by nature itself is such a huger proportion that it is not possible for man to fully grasp and understand. This means that we are a long way from really establishing a forex trading model system that can entirely emulates market patterns that in itself is the outcome of natural marvel. On the other hand, the evidence we get by observing closely to the transitional course of action of the seasons and other non binary work of our universe will aid us in emerging a forex trading system model that can relate to what we observe in price action. if natural laws are not based as forex trading system model that is the real substance of life and a variety of graphical efforts to chart life, then the substance that they constructed for their forex trading system model on will not take into account the significant stages of life and will probably fail throughout these periods.

Natural cycle study is significant in build a solid basis. While it is possible to digitize the natural working to decide previous and forthcoming cycle patterns by computer, if the appropriate input is not provided the logical algorithm, you will get trash out. If you see things just as on or ff, true or false, then a significant component of input, the change itself, will be ignored and the outcome will again be trash out.

The world around us is analog and not digital. Although computers create digital forex trading models but first they run through analog power. Modems for communication purposes demodulates it to digital but only through analog modulation. For forex trading market system, before successfully digitalize it, first we have to create a system model of forex trading market behavior that best describes actual forex trading market events, first we will require to know more of the analog nature of the markets.

Observe the forex trading markets as an outcome of circumstances all compelled by natural laws. Find out the natural circumstances that govern explain why the forex trading market may move up or down in a given phase of time. Never halt at the obvious proceedings such as the weather or the emotions of man. Thoroughly study the subject and don’t take it for granted, for instance what controls the weather or affects the feelings of man. Forex trading market is not just a two dimensional representation. (price charts ? time and price). Forex trading market is multi dimensional just like the traders. If you try to apply just digital logic then your outcome will fall short of the best.

The clues are all around you. All you need is an open mind and in depth analysis of ideas and concepts. There is more than enough in this world alone that need to be find out. You need to consider them, to find ideal forex trading market model, a forex trading model you can depend on. Search for these clues as you would be searching for a buried treasure, and you will be enlightened in the way you are trading the markets as you keep on your hunt for the ultimate system.

 

 


 

Trading Guide

 

8.1 A Forex Trading Plan

8.2 Forex Training: What to Look For in a Forex Training

8.3 Forex Course: A Quick Forex Guide for Traders

8.4 3 Lessons Learned from Ace Investors

8.5 How do Top Traders Trade?

8.6 Managing Your Trade

8.7 There Are Clues All Around You

 

 


 

 

Forex Education

 

The Basics of Currency Forex Trading

Technical Analysis

Technical Indicators

Fundamental Analysis

Intraday Trading

Emotional & Behavioral Part

Risk & Money Management