Examining any chart or inspecting any type of data is determined by what their interconnection is to that data. Here are some good examples. If a bill is put before Congress and so they pass it 70% for the bill versus thirty against, it sounds like a landslide. However if the Senate declares before the Congressional vote that they may only ratify it if the Congress vote will get an 80% to even just the teens victory margin then the bill is in big trouble. However in a presidential election if the prospect receives a mere 55% of the election they declare which a landslide victory. b
Let’s glance at the real estate market. If you bought a house for $400, 000 and sold it for $700, 1000 2 years later you made a really nice return. Let’s say at the same time your neighbor bought his in the same way valued house for $400, 000 and when you sold your home this individual kept his identically respected $700, 000 house. 2 years later his house is now worth $1, 000, 000 and you are kicking yourself. 2 years after that the best boom hits and the cost of the house has lowered back d own to under $500, 000. This individual had his chance to make more but this individual was not able to capitalize on it. You took your hard earned money off the table as the home graph was moving up for your benefit. In our example, if he sells now this individual will be doing it while the market is moving lower.
If My spouse and i is in a trading room and i also and a colleague each buy something at $1 and I sell it at $3 I made a nice profit. In the event that in the meantime the investment goes to $5 and he has stored it and starts shouting ‘see you sold wrongly while I have it. ‘ If he attempts too hard to take advantage of that little extra from his chart and then this bubble bursts and a quarter-hour later it moves from $5 back to $1 then what good was everything for him? You are not thinking about buying at 10 and sell at 100 you are looking to buy at 25 just as the train has left the station and sell at 75 before the teach reaches its next stop at 100.
You would like to take a nice smooth drive. I myself have always liked the pigeons taking a boat ferry trip example the best. The pigeons who obviously know how to fly wish to consider a recovery crossing the river. And so the pigeon will land onto the boat a few seconds after it departs in the proper course and fly away off the boat just before it bumps into their docking point. The pigeon thereby avoids the rough start and complete to the ride while cruising on the high sea for 75% of the drive on the current craze.
When you read your currency chart you have to know where your investment strategy is before you start. If for example you are an everlasting buyer then permanent small retracements on the profit part is a much more acceptable thing then if you are trading for the short term where a retracement can convert a profit into a loss. Once again you must manage the risk and understand how much earnings versus loss versus trading retracement you are interested in your investment.