Marshmallow market overview 0929 ~ FX is not gambling; it’s an investment business ~

Hello everyone

I am Marshmallow.

Today, I would like to share one point of my thoughts so that you can position FX as an investment business rather than gambling.

【When I Was a Beginner Investor】

When I started investing, just before the employment statistics was released, I would hold high-leverage positions, multiply a small amount of capital, and at the same time often lose that capital. Even if I didn’t hold a position just before, if the market moved greatly, I would engage in counter-trend trading and repeatedly average in, which sometimes brought large profits and at other times large losses. In retrospect, I feel I wasted my precious funds during my youth, and I deeply regret that.

【Price movements are a bundle of uncertainties】

What I want to emphasize this time is that in markets with a lot of uncertainty, it is nearly impossible to accurately predict the price movement five minutes ahead, let alone an hour ahead.In particular, after the release of economic indicators, I believe it is completely unpredictable which direction prices will move. For example, after a favorable economic indicator is released, it might be assumed that the price movement will go in a good direction for that investment target, but often the price moves in the opposite direction, as it may be due to exhaustion of new data.Imagining what will move and what data would cause movement is in itself meaningless.

Therefore, continuing to hold positions during economic indicator releases, where there are many uncertainties and future price movements cannot be predicted at all, will lead the market toward gambling on your own.

【Beware tomorrow!】

And tomorrow, Wednesday, 9/30, from 10:00 AM

There will be a presidential debate. I believe the 2020 election will have a very large impact on FX and the stock market, so tomorrow’s debate also holds significant meaning. Therefore, predicting whether the currencies you trade will rise or fall during tomorrow’s debate would be foolish. More importantly, what we can do is to properly reorganize our positions and face the market squarely before the debate begins.

Therefore, for those trading today, to minimize gambling elements as much as possible, it would be better not to hold positions overnight, but to firmly realize losses or take profits and peacefully go to bed tonight to prepare for tomorrow.

When the debate ends and volatility returns to normal, calmly trade as usual and repeat wins and losses. I believe this is the way to treat the market as a business, not gambling, so please take it as a reference if you like.

I apologize for the late message.

Have a good night.

Good night (#^.^#)