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Timing in Trading – It can be everything

Discussion in 'Forex Discussions' started by painofhell, Aug 5, 2015.

  1. painofhell

    painofhell Content Contributor

    Jun 24, 2015
    Likes Received:
    History provides lessons which can be used by traders. Seeing trading concepts from a different, or non-trading, viewpoint can help solidify those concepts in our mind. On that note, here’s a “trading parable” about how traders need to constantly realign themselves with the swaying forces of the market, and have a plan for adapting to whatever may arise.

    Timing in Trading – It Can Be Everything

    During the 1780′s Joseph Fouche traveled from town to town teaching mathematics, but he knew it was not his calling. He needed some event to make his mark on the world—and that event came in 1789 when the French Revolution broke out. He befriended revolutionary Robespierre and proceeded to rise in the rebel ranks. Yet he always knew he needed to be the proper side of the swaying political dynamic, lest he literally lose his head.

    Over and over again Fouche cunningly switched sides, including getting appointed chief of police and then “sleeping” through a coup by Napoleon in 1799. By not threatening Napoleon or intervening, Fouche was able to keep his post and became close with the new leader. As Napoleon fell, Fouche lay low, and once again watched what happened around him, waiting for what side he would align himself with. When Napoleon returned Fouche was reinstated.

    Like a cat with nine lives, as Napoleon’s rule once again came to an end Fouche was able to retain his post. Being a highly ranked individual, having escaped the fate (beheadings) of many others in his position (over and over again), by now no one even dared challenge him.

    Joseph Fouche’s timing was impeccable. The full story is remarkable as this is the briefest of recaps. He continually put himself on the side of whom he thought would have power, not just for the day but for months and years out–and he planned accordingly. When times were uncertain he lay low, attracting little attention and knowing that his time for prominence would come again.

    Timing in trading is everything. You can be on the right side, but if you are too early or too late, it is all for not. Focus on your timing (see trade triggers), hone your patience, control your emotions, monitor your surroundings closely and only act/react when required (see trading beyond the hard right edge).

    In your trading be cunning. Don’t try to be a hero, but rather allow yourself to profit from the climate of the day. Do not become tied to one side of the market, for the market is fickle and will not respect your loyalty. Lay low in times of uncertainty (when not to trade is as important is when you trade), and step out of the shadows only when it appears one side has upper hand (trend)– align yourself with the strongest, and profit accordingly.

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