Secured Funding

The Difference

I have recently been helping a friend with his market outlook and approach, i have only helped a small few as we all know there are many factors in this game, and when one learns that simplicity is the route to succes it becomes much easier.

When giving guidance in the form of answering good questions with really good answers i have come to realise, it still is difficult in the beginning stages for new people in the markets to grasp the difference between a security and the market, reading up on a company, currency pair, bond etc, etc, is what some people in the new stages think is imperative to succesful trading but they couldn't be more wrong in my opinion. I'm certanly not implying to ignore a securities fundies, however i can tell a lot more about what a security is doing by reading the chart as opposed to reading what the talking heads are saying.

It is very important to know whats coming around the bend for sure, you can get blind sided from a critical announcement if one is not prepared, however it still amazes me that people read a positive summary and consider it gold, while the security is going the opposite direction of what the summary suggests. I guess it was how i was mentored and my intial approach was different as well, for that i am grateful.

One must understand the importance of pricing in and how Money Management works in order to get it. One quote that i always remember is" the market is always right and can remain that way longer than you can remain solvent". It doesnt matter what you think it should do, it matters what it is doing.

Price action and charts do not lie, its the brain and its bias that will lie to you. 

So become an expert at reading Price Action then learn how to decifer the Rhetoric. It is critical unless you have deep pockets, sometimes fundies take months or longer to take effect and by then well you might blow an account or two.

Remember there is a huge difference between a security and the market, learn the market and you will fair better, as we all know companies always make themselves sound good even in the face of collapse. 


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Forex Trader, Commodities
Previous Contributor: FXstreet, Forexmosgate,
Currencies: Various: Scalp, Swing, Trend Trader
Technical Market Analysis, Site Administrator, Moderator


  • Hi Gene,

    I like this quote by Peter Borish which confirms everything you've said.

    "Price makes news, not the other way around. A market is going to go where a market is going to go."

  • "The market is always right and can remain that way longer than you can remain solvent" well said Genxtrader, awesome post thanks for sharing

  • love the post 


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