philosophical ideas about the Forex market I . For R & R Investments Forex
Heraclitus River, a unique moment in the market.
begin this Article by establishing the kind reader's intentions and purposes that motivated me to put my ideas about the philosophy applied to the currency market. A major motivations that drove me was the fact to be close to all those who are in the daily operations within the currency market, as well as all those who every day find that market yet, its benefits and its " betrayals. "All this with the idea of \u200b\u200bsharing ideas that help us better understand the market through a better understanding of the environment in which it develops as well as our internal behavior when interacting with the purpose entorno.El this first letter and publish future is to trigger or promote our mind to think, consider, study and evaluate other ways to see the market and thus improve our performance within it. I offer to answer any particular question, which will offer and seek over these items is that the reader's mind open to new perspectives, both personally and through the use of their own reasoning to reach their own conclusions, the best ideas are often rarely original, but usually we create mismos.Para achieve this we will use knowledge of great thinkers, writers, philosophers, even religious people, thus using their ideas and to placate our media environment, resistance, trend lines, setbacks, etc., etc., we find issues of paramount importance if we intend to make a profit in the market and not lose our money. You might think that concepts such as philosophy or set of people like Buddha can be useful when operating, however, I hope that the reader has the patience to have a server to let my arguments fall on their own weight, plus of course, a mind that allows the "intrusion" of new ideas in their reasoning.
said that I start from the most basic principle and this is possible, describing what is meant by philosophy, by using a dictionary that reads: PHILOSOPHY
f. Set of ideas about principles and causes of the being of things, the universe and of man. To make it even easier we can say that philosophy is about our "concept" (how we see and understand things) about the principles and causes (the causes and reasons) of practically everything in the universe around us. Once this is understood we can move from concept to word: PHILOSOPHIZE intr. Discourse about a thing with philosophical reasons. Briefly reflect or think about one thing, subject, or may issue in particular, all of which is the intent of this article. And we need not look far to know what the issue by both you as a reader reads these words as I have written as the author, are summarized in one word: FOREX (for its initials in English).
begin to philosophize (or think if someone philosophizing seems a verb very "heavy") about the times in the market, and seeing as how sometimes the perspective is lost due to different reasons about the fact that every time the market in its development is unique and unsurpassed.
To begin the analysis of this issue will leave an idea in essence and see how at first glance appears to have no connection with buying and selling euros or pounds, but its implications are deeper this, which is vera clearly evident once distilled. Everyone knows or at least know something of these great minds in Greece from a very old age (many of times before the birth of Christ) and names as Socrates, Plato and Aristotle can skip to the minds of some people, they and other but gave the West its philosophy through their ideas and way of thinking. Take them all to Heraclitus father of dialectics (the art of debate) and in particular his argument about "NOBODY BANA TWICE IN THE SAME RIVER BECAUSE THIS IS NOT NEVER IN THE SAME TWO successive moments."
Here we can find the first denial by many readers, and many of them may be able to have "good" argument to argue that such thinking is against all logic and common sense, but begin to think of to stop reading this article and keep an open mind to Heraclitus, the profit otorguémosle of the doubt. With this attitude we will be willing to at least hear, try and evaluate some arguments to support what was said about the River. Imagine a river either in the middle of a city, or away from any urban or macho man, surrounded by any particular landscape, a forest, a mountain, perhaps the Thames or perhaps the Danube, that I leave to the reader's taste. Now, with our river in mind we can proceed to imagine any one person or even ourselves entering in river waters of our staff, after a while we decided to leave and come back tomorrow and do exactly the same as the previous day. Raised in this way can we ensure that the river where we spent two days in a row is the same and nothing has changed at all, is in the same place, around the same conditions prevail on both days (and this is As the gentle reader has thought about the river) of water seems to have done the same conditions on both days, the temperature did not vary one degree Celsius and the current is the same in intensity. But here is when we begin our reflection.
Our claim is that it is the same river, or refuting what Heraclitus said, we bathed each of us in our personal river and this has been the same on both days. To think a bit about whether we are right or not I think is very practical to divide the "components of the river", ie: water, river stones, current, temperature, maybe if I was living in the flora , etc.
This is where I can only imagine what Heraclitus ask (among many things): - maintaining the river the same temperature? - The water in which they were REALLY the same? - The depth of the river was EXACTLY the same? - We are confident that the water flow had the same intensity? - The stones of the river bottom, is the same amount of them? If so, would be placed in the same position on both days? - There is the same amount of flora and fauna? And also are performing the same function in both days?
I think at this point is not necessary to add additional questions for the reader realize that, "pro-ba-ble-mind", our imaginary river was not the same on both days, ie , just consider the aspect of water. A river carries water from one place to another, so the water breaks through to reach the sea or perhaps another river, if we even try to make our river had the same conditions to be the same day that would mean we would have to use exactly the same water, same amount, no more and no one milliliter milliliter less , at the same temperature a degree or a degree more or less under the same current or faster or ... .......... well I think the point has been claro.Obviamente water use the previous day must be thousands of miles away from the place where we had contact with her in the river the day before and the only task of considering ways to meet the same water seems monumental, and needless to say, for example, the stones River, perhaps the current is not carried with it some of them? Perhaps not constantly moving from place? Or erodes every minute of every moment? As such a task to solve in this way our river may be the same only in a couple of times? In this way we can see the implications and the depth of the ruling that gave us Heraclitus, refuse to accept the obvious is a barrier prevent the reader take our reasoning to the foreign exchange market, which is our goal to achieve.
But we take our thinking a little further and say that based on what could have reasoned that are unlikely to predict that the river will never be the same, and not just that, but imagine any situation you want, the way we do every day to our work, we can say the same?, exactly the same? A dish we ate two consecutive days? I leave to the reader's imagination to develop and evaluate the implications of "equality" in a task, a person or situation.
If we are correct (and I have no doubt that it is), we can say that the reasoning that things, people, time and situations are never the same, you can apply to the forex market? SI. I can not find the first instance elements that make the forex market environment in which we have examined the reasoning advance can not be applied equally, in fact personally believe it's the environment where they can show what we have discussed so far, in short, every time the market is u-ni-co. Which likewise results in each operation is unique in its kind, as well as its outcome, and acceptance of this idea we will see the market differently and not expect it to be "reasonable" or "predictable "without fear of error.
I want to mention at this point I do not mean that we can not think or believe what will happen at some point in the market in the near future or distant based on our analysis and supported by any amount of data and news, of course you can do, in fact we do, but this does not mean we can assert, bet our house and life in it and see how then our analysis does not consider any element through which run out of cash in our account. But what happens then with technical analysis? It is the basis of past performance technical analysis to consider what the market can do in the future. " If you read the last question I want the reader can reflect on the word, this means that based on technical analysis we expect the market to act in a certain way, you can do it or not (based on its previous behavior), but the word may, where perspective is lost because those who fail to change the word can make or conduct or any other that assures them a moment the market will be exactly alike in the past.
Here is the crux of everything we've said so far, a technical analysis or a news perspective can give us clues or increase the chances of a move in the future, but as in the river for an event or situation is similar to another it is necessary for EACH of the elements that compose it is exactly the same and behave the same way. This led to the currency market can be exposed by the following example: Let's say we are waiting to know the trade deficit the United States, or any other news or event (rupture of a support or resistance) than in the past has provided the opportunity for good recorridos.Ahora well say that the event on the last occasion it had a deficit as expected as the dollar depreciated, and the next announcement is expected in the same way a large deficit, just as the same setting a trend indicators depreciation of the dollar as the previous occasion to do? Just wait for it to make the announcement to take profits is not it? We are just a click away buy one currency against the dollar and the boom begins. But then we explain the ad as was expected, we made our operation and after a while we see that things do not go as expected, then our platform losses become greater than we can bear (psychologically and financially ) and we chose to exit the market with both financial and emotional loss and a sense that something escapes us, that's what happened? The next day we saw the news that the indicator that we forgot to check and we should take into account but it is too late. In the above example we can see how as we expect "Our river" is the same as we have seen what is difficult for the news we expected in our example provides the same reactions to the news earlier would have required that these conditions had been presented accurately, ie the same number of traders, the same outlook, the same number of people leaving and entering the market with the same number of positions, finally, as in the example of the river we can see that it is virtually all of the foregoing imposible.Y worse if news we're waiting for has had a similar behavior in the last five or ten times, as this reinforces our belief that things behave the same way, truth is that perhaps increase the likelihood, but no more and that should be taken carefully in mind. The importance of understanding the concept of a time when the market can have profound implications when operating in order to make better forecasts and extend the benefits when trading currencies.
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