Why would this be the case in forex ? If you trade in forex you get a sense of tight precision mixed with a kind of looseness. It can make trading frustrating, but it may be the source of structure in the market which can make trading successful.
The looseness from a retail traders perspective is not looseness at all, it is major players taking positions against your trade because they can withstand the move against them. It is the great divide in forex, those with deep pockets/credit lines etc. and those without.
Schlossberg makes an intriguing argument where he says the retracements are a result of this. Read his book for a full explanation of this. But remember these are the best traders as well and their precisions is what you want to be aware of.
But how do you trade like them ? Well, you cannot, you cannot withstand the moves against you unless you trade micro lots with a fair amount of capital. Retail traders handicap themselves against these players by trading larger sizes without sufficient capital.
Have you ever called a market turn and got stopped out before it turned, that is the difference between the small and the big in forex. They can handle the moves against them before a turn.
For the small in forex, think small, that is one's advantage, look for those niches which are precise to you. But bear in mind you may be a lot more right than you think. On the much happier field of stocks, another company I liked and kept a watch on during the crisis is SMSI, it is showing some positive signs in its balance sheets, that year on year move I like.
But again this is not an analysis, consult professionals for this, there is the huge issue of the present and future state of the market to think about. Keeping an eye on stocks is a safe option right now.
© 2010 Guy Barry - All Rights Reserved.
