The reason I start with the weekly chart is because this is where the opportunities are very large in the Forex market. I know the course is short term momentum day trading, but the only thing I've learned over time, the error number one among day traders, day traders even with lots of experience, they forget that big money players in the market are looking at long term charts. In fact, most of the guys I knew in the business of hedge funds would probably have a heart attack, would have a heart attack, if someone said I had to look at a chart of five minutes.
They have no idea what to do with something. I mean these are guys who are looking for, in some cases, letters of five years. For each bar, which is five years of time or a year or quarters, months, weeks, certainly, maybe one day.
By downloading these letters very short, just do not want to. What you think in your mind is just a lot of noise and here is why. One thing that especially novice traders miss is that the market is driven by the players really big money. The big money players will see a table like this and I'm new here and pointing to February, March and April 2006. They will think of themselves based on fundamental research, quantitative research-based, based on talking with bankers, based on inside information, based on M & A information, based on flow sterling money is going to be significantly higher within six to eight months.
They may not know exactly how much higher, but they know significant. They may have a target, say, which is 1500 points away, possibly a little less, say 1200 points away. You have to remember that these kids are treated in terms of five hundred million to one shot. I mean, is not small positions.
That means you are trading at five hundred million to a blow that probably means your total position anywhere from 5 to 15 billion dollars.
So we're looking at this place again here and they are thinking to themselves that the pound will be much, much higher. Now think about this. If you are thinking in terms of six months away, five months, four months away, watching a one hour chart will not have any draw for you. You are not even going to want to watch a one hour chart. You will want to see a weekly chart. That's why I am on the weekly chart to begin with.
They have no idea what to do with something. I mean these are guys who are looking for, in some cases, letters of five years. For each bar, which is five years of time or a year or quarters, months, weeks, certainly, maybe one day.
By downloading these letters very short, just do not want to. What you think in your mind is just a lot of noise and here is why. One thing that especially novice traders miss is that the market is driven by the players really big money. The big money players will see a table like this and I'm new here and pointing to February, March and April 2006. They will think of themselves based on fundamental research, quantitative research-based, based on talking with bankers, based on inside information, based on M & A information, based on flow sterling money is going to be significantly higher within six to eight months.
They may not know exactly how much higher, but they know significant. They may have a target, say, which is 1500 points away, possibly a little less, say 1200 points away. You have to remember that these kids are treated in terms of five hundred million to one shot. I mean, is not small positions.
That means you are trading at five hundred million to a blow that probably means your total position anywhere from 5 to 15 billion dollars.
So we're looking at this place again here and they are thinking to themselves that the pound will be much, much higher. Now think about this. If you are thinking in terms of six months away, five months, four months away, watching a one hour chart will not have any draw for you. You are not even going to want to watch a one hour chart. You will want to see a weekly chart. That's why I am on the weekly chart to begin with.
