Gold has made a new high and market psychology will now:
OMG new high! Gold rises, breaking resistance,
Bloomberg, Reuters … will write in bold NEW HIGHS FOR GOLD
News reporters will write: gold WAS, WHY, reason (like this and this and this and …)
Try checking, they always say something happened in gold because of something./think about it/
And that it’s in the past and you can never benefit from it.
They will create panic for most people that gold is flying and will never come back.
They said gold has never reached this level since 2013!
This of course applies to any currency pair. Extreme bottoms/GBP-brexit/.
This is market psychology.
Nothing for us, but for 95% of the people.
The 95% of traders who will think: wow it’s going up, it’s never going down, let me buy, I don’t want to miss the upside …
And what do we expect? Fall or continuation, are we right or wrong?
We don’t care where it goes!
Making money on a consistent basis is what matters and is how we need to think, this should be your mindset. It’s good to understand the situation and know that everything is plotted on a graph. It doesn’t matter what happens next.
But with a system/plan, no matter what happens, you will make money in the next move.
You have to understand that the market can do anything at any given time, so we have a system that respects that risk.
If you stay disciplined, you will be profitable in the long run, that’s why you shouldn’t be afraid of being wrong on every single trade, because the fear of being wrong will lead you to avoid trading and that will have a bad effect on the trade, the ability to trade successfully.
Stick to the system/plan.
Build a probabilistic mindset:
Anything can happen.
Our advantage is nothing more than that we understand that the market can do anything, anytime.
Every market moment is unique.
When you understand this, you won’t put unrealistic expectations on any one individual trade, but you’ll take it as a whole.
If you don’t practice good money management, then you are a gambler, a gambler and not a trader.
MM, portfolio and patience.