Myths About The Market
There are many myths that we all encounter when studying the market. These myths are based on historical data, but we aren’t meant to look at historical data alone to inform our future decisions.
Indicators, fundamentals, and opinions do not paint a crystal clear picture. Price action is crucial when analyzing our charts.
Here is an example of a trading myth – “You cannot trade in December. There is no money to be made”. This is not true. Traders can make money at any time of the year.
There are hundreds of PIPS up for grabs during the festive season. Most traders would have to find this out by themselves since they are told the opposite. Thankfully you came across this article to inform you.
In 2020 there were significant movements during this festive period in the Forex markets as well as Indices.
Every trader needs to gain experience in the market, in different conditions, to achieve a concrete perspective and understanding.
Without this experience, there may be plenty of setups you miss because “Markets are slow during the festive season.”
When you have years of trading under the belt, you will realize that people are still trading, data is released, and the world operates. So, of course, markets are always moving, and there are opportunities you can capitalize on.
Now, does this mean you will have the same amount of volatility? No, it doesn’t mean that at all. However, it doesn’t mean you won’t have volatility either.
The only way you find out is to experience the conditions for yourself and not just go off someone else’s views.
When you believe these myths, you tend to ignore the charts altogether and stop learning. Look at the markets in all seasons, during holidays, different bank holidays, and international market closures.
Predict what you think will happen when the markets open and analyze if your predictions were correct or not, and the possible reasons for either scenario.
If you analyze your predictions and their outcomes, you can learn how to respond when presented with gaps or market closures.
Don’t just believe the myths, do your own analysis and testing of the markets and how it moves when different circumstances occur.
You are the trader, and what you see may not be the same as what someone else sees. Nobody is built the same. Be your assessor. Make decisions based on your findings.
Analyze the markets throughout the year, conclude your findings, and act accordingly in the future.
Don’t believe the myths