Imagine a gunman demanded an answer to a question, and you could ask only one question in return before answering.
|Gunman:||“Would you buy or sell the USDJPY right now!?”|
|You:||“What is the current price?”|
Clearly, there was no time to consider an in-depth technical and fundamental study in this scenario. What becomes important in a hypothetical moment like this (to make a point) is to know the basic information and be decisive. The point you need to realize is that we did not choose to sell the U.S. dollar/Japanese Yen (USDJPY) as a random 50-50 coin flip guess. We chose to ask about where price was currently to help us choose a side (buy or sell). Since the USDJPY price was below the equality line, or what we call the parity line at 100.00, we opted for the side that was winning, which was in this case to sell. Society is attracted to valuable things, plain and simple. Once you know your risk on the idea and you have an opinion, get after it! Don't sit on your thumbs.
Now it's not always that easy to just consider price, as we do have other factors but you would be surprised at how far this idea can take you. You might ask why you would look to price under that type of pressure and be so certain with your conviction. It's simple. The overwhelming majority of people will follow winners and you can be assured that their intentions upon entry (long or short) were to make money and not lose it. You must come to ...