In the world of investments and currency trading, we get to adopt various strategies in a bid to help us make sense of what behind the screen and also to be able to tell ourselves that, we won't be loosing our monies.
But my question now is, do charts helps us make profitable market calls?
Many of us are familiar with Forex Trading before the birth of cryptocurrency and it has been the base with which so many of us have used to enter the cryptocurrency trading world.
My friend lost $25,000 trading on Forex in the first week of August and he seems distraught because, he did everything right. He used the necessary technical analysis and also made sure to follow the market but, then, he lost it all.
What is the place of charts in currency trading?
A chart is a graphical representation of data, in which "the data is represented by symbols, such as bars in a bar chart, lines in a line chart, or slices in a pie chart".- Source. From the definition, you can see it says, 'graphical representation of data.'
Now, does this mean it is accurate and will ensure profitability during trading calls?
Many times, we spend endless hours looking at the charts and even going as far back as a month to try and make sense of it all hoping, it will flow the way we want. We put to practice what we have learnt over time to try and make the right decisions as it should affect trading but, we mostly end up in the other side of the charts.
I am presently riding in between charts trying to understand what is happening and it looks as if, the charts are taking a formation against me whenever I step in.
Trading with emotions?
There is that saying that, a good trader must be sure to manage his emotions so he makes the right decisions.
Ask yourself how good will your emotions be when you are actually running out of leverage and your account is just getting tanked in red.
I believe emotions is more of what your liquidity is about and how sturdy it is during the ups and downs. Trading online and offline are a whole different settings but with same pattern of loss and wins.
If you are making the right decision, you will be getting the right results.
The wrong call will never bring the right results no matter how emotionally stable you are.
Liquidity versus Emotions.
I choose liquidity over emotions in trading any day because, I have traded with the right mindset and emotions in the past and ended up losing money.
My friend also got robbed by his emotions because, he kept telling himself, "if I am not in a rush, it will all turn around and work well." He kept romancing his failure before it even started and now, he is distraught and sad.
If you have a good liquid footing while trading, you will be able to recoup your points as the market reverses and also be able to make some good calls.
Bear in mind that, the platform is not a playground but a serious market oriented platform that pulls in monies from around the world and these monies are owned by individuals like yourself and no one is out to trade a loss.
Do we stop trading altogether?
I love to trade and also, in the last couple of years trading, I have been able to learn that, you never truly completely cash out from the market because, there will always be some deficit that you won and will live with during your trading journey.
Do we have to stop using charts and just hope it works our when we get into the market? Well, I know your answer is not gonna ride in the affirmative on that one because, win or loss, the charts will never stop playing a major role in trading.