Contrarian Forex Trading.
Most people are not comfortable with the idea of doing what no one else is doing. It is a part of the social insecurity that is innate in the average person. Ever since I was a child and even more so when I was a teenager I noticed that in general the people around me did not even have any interest in understanding the nature of their own beings and their purpose for existing in this universe. It was clear to me that people in general are lost and not only do not know why they exist but also they do not even seem to be interested. That is when it also became clear to me that being like every one else was not necessarily a desirable thing.
In Forex trading most people are not doing what would bring them consistent profit. In fact, most people will not even participate in the Forex trading business. I have heard many people say things like, “If that really worked everyone would be doing it.” Well I hope that the success oriented person will immediately realize what a ridiculously false statement that is. The fact is, there are an infinite number of ways that anyone could make any amount of money. And guess what? They are NOT doing these things.
Several years ago Jake Bernstein, a well known stock and commodity trading mentor, conducted surveys daily in which his company called a certain number of individual traders and asked them simply whether they were bullish or bearish. That information was converted into what is called a “sentiment indicator”. The way sentiment became useful was that a profitable trading strategy could be implemented by always trading the opposite of whatever the prevailing sentiment was. The Commitment of Traders reports that we often use in our trading strategy demonstrates the same thing. The majority of small traders will always be extremely bullish when price is at its top and they will be extremely bearish when price is at its bottom.
The same is true of the overall approach to trading. Most traders are exclusively focused on extreme short term day trading and most are trading the same currency pairs in the Forex market. Most are using similar strategies and most are consistently losing. We might be able to derive a clue from observing these facts. Could it be a good idea to do what everyone else is not doing? It has been my experience that the best way to consistently get profit in Forex trading involves an approach that is entirely different from what the vast majority of Forex traders are doing.
Why I Love To Do What No One Else Does in Forex Trading
