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  • Added for You - Day Trading Success – How To Take Advantage Of Human Psychology

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    3. Large speculators

    These are large individual players and a variety of money managers looking to make profits for themselves or their clients.

    4. Small speculators

    This group is everyone else and consists of traders with differ

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    Day traders are looking to profit from short term moves and to do this means that they have to be able to gauge short term shifts in human psychology.

    Humans determine prices and if you can gauge the short term psychology you can enjoy day trading success.

    Let’s look at taking advantage of the above.

    The market

    The FOREX market is huge and turns over trillions of dollars a day.

    The market consists of many different groups and to complicate matters these groups all have different investment objectives and ways of trading.

    For example, some are hedging and others are there to make a profit.

    We can identify 4 main groups:

    1. Hedgers

    There to hedge and offset risk in the currency chosen. They are corporations and money managers with foreign currency exposure.

    2. Central Banks

    Are there to look after the interests of their countries economy and currency and tend to intervene only occasionally, but when they do its big intervention!

    3. Large speculators

    These are large individual players and a variety of money managers looking to make profits for themselves or their clients.

    4. Small speculators

    This group is everyone else and consists of traders with differ

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    g success.

    Let’s look at taking advantage of the above.

    The market

    The FOREX market is huge and turns over trillions of dollars a day.

    The market consists of many different groups and to complicate matters these groups all have different investment objectives and ways of trading.

    For example, some are hedging and others are there to make a profit.

    We can identify 4 main groups:

    1. Hedgers

    There to hedge and offset risk in the currency chosen. They are corporations and money managers with foreign currency exposure.

    2. Central Banks

    Are there to look after the interests of their countries economy and currency and tend to intervene only occasionally, but when they do its big intervention!

    3. Large speculators

    These are large individual players and a variety of money managers looking to make profits for themselves or their clients.

    4. Small speculators

    This group is everyone else and consists of traders with differ

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    different investment objectives and ways of trading.

    For example, some are hedging and others are there to make a profit.

    We can identify 4 main groups:

    1. Hedgers

    There to hedge and offset risk in the currency chosen. They are corporations and money managers with foreign currency exposure.

    2. Central Banks

    Are there to look after the interests of their countries economy and currency and tend to intervene only occasionally, but when they do its big intervention!

    3. Large speculators

    These are large individual players and a variety of money managers looking to make profits for themselves or their clients.

    4. Small speculators

    This group is everyone else and consists of traders with differ

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    corporations and money managers with foreign currency exposure.

    2. Central Banks

    Are there to look after the interests of their countries economy and currency and tend to intervene only occasionally, but when they do its big intervention!

    3. Large speculators

    These are large individual players and a variety of money managers looking to make profits for themselves or their clients.

    4. Small speculators

    This group is everyone else and consists of traders with differ

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    p>

    3. Large speculators

    These are large individual players and a variety of money managers looking to make profits for themselves or their clients.

    4. Small speculators

    This group is everyone else and consists of traders with different skill levels and investment methods.

    So how can you gauge what all these people, with all their different views are going to do in a day and take advantage?

    The answer is you can’t

    That is way day trading success is a contradiction in terms.

    In such a short time period as a day where prices can go is anyone’s guess.

    Day traders will point to daily support and resistance levels being important and they can be traded.

    Really? Think about how dumb this view is!

    The vast bulk of participants pay no attention to day time levels of support or resistance whatsoever and don’t consider them important.

    Think about it:

    Day traders scratch their heads when levels that should hold are broken, but you don’t need to be a rocket scientist to work out why.

    No one pays any attention to them and they have no significance.

    All short term moves are random as in short time frames you cant measure human psychology accurately.

    The Test

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