REAL TIME
Why the emphasis on "real time"? It is absolutely crucial that one considers the
changes that occurred between the pre-information age (computer and connectivity)
and the furnace of the information age – trading in the global financial markets.
Except for the military no industry contributed more than the international financial
markets to meeting the need for real time information delivered through different
mediums. The fact that we have this technology must not be underestimated. If you
don't understand this, the affect of real time events, and even the real affect of
fictitious events on the currency markets, then you are once again bird watching in
lion country. We will examine, in some detail, what real time analysis means, but for
now you must know that my approach to currency trading is rooted in the here and
now, the reality of what is happening around me. This may seem obvious but it is not,
and it is the key to trading success in the currency markets.
A lot of people think they know how to listen and what to listen for. They make a few
good "calls" and their confidence in the system they are developing is high. Then the
market goes against them for some time and they feel let down, upset, on the wrong
end. They haven't been listening. They've been eavesdropping. Being able to ‘listen',
to really listen to what the market, the here and now, the reality, is telling you, is a
skill you must develop. The currency market is like a symphony orchestra. There
are several instruments all contributing to the creation of a harmonious whole, in this
case, the price. The price is precisely what it is, no more, no less, but its very
impersonality belies the fact that a multitude of individual contributing factors have
come together, and are constantly coming together, in an ongoing real time process
of ever changing events. To understand how an entire orchestra produces its sound
you need to know what role the individual instruments play, the violin, cello,
kettledrums, the flute. The more proficient you get at ‘listening' to the market, the
better you will become at identifying discordant sounds and like the conductor asking
the violinists to pick up the tempo or indicating to the kettle drums to be a touch more
retiring, you will act depending on what you hear.
Unlike some trading systems, my system begins before any buy or sell buttons are
pushed. It includes for example my goals, because these have a direct bearing
on when I push the buy or sell buttons. Unsuccessful trading can result from
factors that have nothing to do with the market. Trading is not simply about analysing
price charts. It is also about realistic goals, proper business plans, the sober
implementation of strategies and then developing and refining a methodology.