Is it possible to use the law of opposites to your advantage?
Last week we talked about trading in the Forex Market – in the midst of a global pandemic.
Even when many were losing thousands from their investment accounts without ever understanding how it started.
Or how to stop it.
What if there was a way to sell the market to capitalize on the losses – to really use the law of opposites to your advantage?
The Forex Market is essentially built to take advantage of both the ups and downs in the market.
They are each their own transaction – the buy and the sell.
And remember, you don't not have to buy in the market in order to sell it. You can just sell all day long without ever having bought it first.
Time in the market
Wouldn't it be nice to avoid being forced to hold onto a trade for a long time hoping it lands in your favor?
How many of you have done that? If you have followed the buy and hold philosophy, raise your hand. There’s no shame.
It can work but there’s still some chance involved.
If you get into a trade based on hope or assumption - even a strong assumption - you feel good about it, right?
All the feelings
Fear or greed. Emotion or force.
Follow emotions and you'll lose every time.
And I don't mean money every time either.
When you stop trading using the law of opposites, far more is on the line.
Because you'll lose your skill when you force, assume, or hope.
None of those actions will hold up in the long term.
What we do
Wouldn't it be nice to trade based on fact, numbers, and knowledge of the past?
I learned to get into a trade based on truth – the law of opposites.
And the converse was also true.
It was so nice to walk away from a trade, confident that I followed my rules, the visuals, and facts.
Rather than anxiety the moment I placed the trade because secretly I knew it was a toss-up.
This isn’t gambling
Stick with Vegas if you want to bet on black and HOPE the odds land in your favor.
Just like almost anything in life, if you have to force it, it's probably not worth it.
Trading is the same. If you force a trade, it probably is not going to play out well.
I trade based on truth, not a wish or a hope - and that has held up long term for me and my financial goals.