Talking Points:
• What we 'feel' about important economic, social and financial topics should not dictate how we trade
• Events can unfold irrationally and the consensus doesn't always reflect our views
• Trade analysis should be focused on what 'may' happen rather than what we feel 'should' happen
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
Negotiations between Greece and its creditors seemed to progress Monday, and market opinions flew. Some believed the headway would be another failed effort, others opined this was the key to a definitive resolution but most believe they know what the parties 'should' do. Each person has an opinion on how issues - economic, financial, political, etc - should be dealt with. However, that should not interrupt a well-thought out trading evaluation. The markets - and life - often play out irrationally with painful decisions handed down on a regular basis. Positioning for how things 'should' be would therefore put us often in conflict with how they actually are. Greece, risk trends and Fed forecasts are among the most popular topics in the FX market where opinions weave into trading analysis. We discuss these particular themes and how we should evaluate them in trade potential in today's Strategy Video.
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