Adapting to Change- "the good times never last"

The FOREX market will trend 2-3 times a year. That's less than 30% of the time. The rest of the time it bounces around in a range.

Have you ever had a bumper month where all your signals go your way and you end up with a sterling SystemR and a Win/Loss that is the envy of all your friends?

Only then to give it all back the next month and then the following again... depressing right?

As a short term trader it's important to be real about market conditions and why price is moving to it's new fair value. Mostly, it's a fundamental reason and recently Covid has sent a shock wave through the market correcting many stock indices and putting a pulse through the FX market.

After an impressive move and a rebound to its approx 61.8% most indices, majors and oil find their new normal. So changing your mindset from trend following to corrective and consolidative mode should be done early. As I pointed out in Adjusting to Crisis, in a severe trend, divergence has little effect. And, when in corrective modes we tend to see a lot of classic TA patterns, Harmonics and price will find it's new range.

But take note: From month to month, week to week - each day is different.

Important to stay on your toes because the market will only give you the reward if you are in front, first and a leader. You, as a trader, are making the market not reacting to it. Think to yourself what is fair value, where am I in regards to the trend or range and "Profit alway favours the brave!"

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Disclaimer: Trading foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange and futures trading and seek advice from an independent financial adviser if you have any doubts.  Past performance of financial products is no assurance of future performance. Lepus Proprietary Trading is a trading name of Jackson Capital Pty Ltd (ACN: 165 682 842) 

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