BELIEVE in the POWER of CONTRARIAN Thinking!

Know when the Market is in a state of EUPHORIA or HYSTERIA     

Whenever majority of the market participants starts to flee away from a massive 'Market Sell-off' in global magnitude, know that the contagion of a rapid decline would not last longer than the time it took prices to reach its peak. As the global rout have been magnified due to modern technology in trading algorithm that adds up to a fast paced market activity. The past trading days were classic examples of exceptional times in the financial markets .

Thus, experience plays a greater role in trading where risk averse market participants would have some difficulty in 'ADAPTING FAST ENOUGH' in certain market conditions especially in a rapidly declining or even an accelerating price trend. When this happens the market would simply leave them behind to mend for themselves and would regret not being able to take action when it needed the most attention. 

However, it provides tactical investors and seasoned traders the ability to outmaneuver the market at its own game. Knowing how and when to apply these methods by having access to the different market strategies available through 'ARBITRAGE TRADING' can do more good for these clients other than themselves and be thankful for an outstanding job well done.

Although, to be able to carry a higher degree of trading confidence in various markets, it would take a greater understanding of how all these works which would entail the appropriate amount of funds to do so with precision trade execution. The end result would be based on the due diligence made and well disciplined enough to follow the exact plan of action even before execution of the trades. Allowing to adapt at any given time when market conditions change should always be considered.

Always expect the unexpected and should have an array of trading solutions ahead of time. However, what good is a plan of action if and when it is not properly executed. Due to the fact that the market has moved or simply 'inaction' even when it has been anticipated. Stay ahead of the market by being aware of next major event and filter out external factors that may only seem to provide a misdirection. This is where the contrarian approach plays a significant role of being able to develop a 'Strategist Mindset' while trading volatile markets.

Related Video Information: Effective Analysis & Contrarian Theory 

and the Benefits of a Mentor / Trading Partner

VOLATILITY Remains on USD EUR CABLE & Crosses

Heading towards this week's FOMC rate decision, the USD steady price recovery has well been on track, especially coming from a recent 2nd higher low @95.93. The rapid pullback with the EURO post ECB was considered the catalyst of the market direction.

The currency market's behavior based on Price & Time cycle turns also remains well within its 7-14 days coverage, where the effectiveness of the Fibonacci time line have applied since the cyclical pattern was identified with a few +/- lagging turn over market sessions between the 3 time zones.

This is well in place for medium term outlook maintain overnight trade positons across the market with the European majors and Asian currencies as a risk spread strategy. Alternating price swings on the Asian currencies is reflective well with respective price action with the USDJPY pulling back @112.83 while the Aussie & the Kiwi or the NZDUSD remains in a corrective phase as of writing @0.7462; @0.6605 respectively. And the AUDNZD Cross rate still remains on the higher band price @1.1293 in Asian trading session.

Volatility Translates to a 'MAKE or BREAK' Trade

Traders and investors would have to deal with two important trading issues taking place. One is the market price volatility that changes unexpectedly when one least expects. That in turn gives not a lot of traders the level of confidence and increases the degree of trading difficulty in the market.

Secondly, with the increase in price volatility price movements equates to wider trading range in both directions. Thus making it more difficult to find timely execution of trade position. Superior positioning may well be disguised in non-active price action between trading session in the three major markets. But the traps of price pullbacks and resumption of original price trend may take the unsuspecting trader flatfooted.

Volatility Translates to 'MAKE or BREAK' Trade