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Wait for Market Confirmation
Successful trading relies on market confirmation rather than personal belief. Traders must avoid the mindset of believing they know better than the market, as this approach can lead to significant risks. Market confirmation involves interpreting market signals accurately, especially during periods of high short positions. A 'news failure' event serves as a key indicator; when negative news does not lead to expected price declines, it suggests underlying strength. For example, in the context of currency trading, an analysis of interest rate differentials and data outcomes can reveal bullish trends despite initially bearish news.