I used to ask a lot of questions, trying to solve puzzles that even if I had the answers wouldn’t help me trade. Take this morning for example. Overnight the USD gained on the GBP and the JPY. Then US data released and was USD positive. Completely against what I would think, the USD weakened against the same two pairs.

These counter intuitive moves used to really bother me. I started trading the Forex Market seriously after the 9-11 attacks during the ensuing debate on the war, and everything else that surrounded it. Often there was all this US positive data being released. I remember one month sitting through the NFP release that was clearly USD positive and watching the buck get hammered.

That’s when I realized that they weren’t counter intuitive moves. They were moving exactly how price pressures were supposed to move them. For one reason or another, people watching that particular release were getting in and out of the market at that point because of the release, or what they expected to happen after the release. It wasn’t the move that was counter intuitive; it was my intuition that was counterproductive.

I began focusing instead on the questions I could answer. Where is support and resistance? Where are my entries, exits and stops? What are my chosen indicators telling me about what others are thinking? Those are all questions I can answer. As I concentrated on questions I could answer, I became a better trader. Not as good as I hope to be, but better than I was.

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