ONE - There's nothing quite like the fickle nature of markets. The world of finance and trading often is associated with a level of sophistication and complexity that can intimidate many. But in reality, it all just comes down to taking something that's simple and turning it into something much more complicated than it really needs to be. One day, all of the news and opinion is aggressive to one side, unwilling to waiver and unwilling to consider the other side. And just as quickly as that happens, everything shifts the other way, only to forget that the balance was so heavily weighted on the other end a moment ago. And not only that, but there is also this idea that no one can even understand how things could possibly move in the other direction. To say all of it is comical would be an understatement. Perhaps this might have something to do with my preference in taking a contrarian point of view. But my point in all of this is that when trading deeply liquid markets like currencies, there's always going to be demand for a currency, even if it is less desirable. This only makes the case all the more compelling for things to come around and for the back and forth that is the way of the world, to eventually play back into the weaker currency's favor. But in order to be able to do this, you need to have a lot of patience and you need to understand that to expect results immediately, is to set yourself up for a bad trading experience.
TWO - Now of course, all of this comes from the perspective of a trader who thinks this way because this is how he sees the world and this is how it has worked for him over time. When I got into trading, I realized very early on that I did not want to be trading positions that would involve me watching a 5 minute chart. I believed there was a way to find a trading style that would compliment a trader's personality and disposition and I pursued a strategy that would accommodate this need. The result was looking for markets that had extended well outside of their normal trading ranges and to look for an opportunity to bet on mean reversion. That is to say, to look for a way to bet that the market was fickle and to expect that it would soon be abandoning the position it looked like it would never fall out of love with. This allowed me to trade time frames that weren't going to make me unsettled and nervous and this allowed me to take positions in a contrarian way, which meshed well with how my brain worked. And so, I will never be able to stress enough just how important it is to be able to find a trading methodology that works for you, based on who you are as a person. And once you do find that strategy that makes sense, then it just goes back to my number one rule. When you see the trade, do you love it?! If the answer is NO, you hold off and wait some more. If the answer is YES, then you go for it and know that you're doing good.