Well, have I got news for you! If you are a trader, physics could make you a lot of money and you do not have to study black holes and string theory to reach your goal.
Just think Time and Gravity. Let these be your friend. Study these two and you are home free.
What does time and gravity have to do with trading you say?
Have you ever heard of "the trend is your friend until it ends"?
To use physics, you have to then apply one of Newton's Law of Motion - the one that says, an object remains in motion until it is stopped by a greater opposing force.
Then if the trend is up, you have to keep buying until you can no longer buy. And if the trend is down, you have to keep on selling until you can no longer sell.
To be successful at trading forex, you have to then know the trend and trade accordingly.
When you trade with the trend, Time then becomes your ally. You can enter at a crappy price and time will probably bail you out and make you profitable if you understood how it works.
First of all, many traders jump in the market regardless of the conditions.
They enter a dead market with no volatility and enter a volatile market against the trend; big mistake!A bigger mistake is that they often set tight stops that are sure to be taken out.
This is the lesson to take out of this post. Be slow to take profits when you trade with the trend and be fast to take profits when you trade against the trend.
The reason, Time.
The passage of time is favorable to the trend trader and a killer to the counter-trend trader.
Let's look at a few graphic examples.
The chart above shows a 30-minute chart of the GBP/USD. It shows a clear uptrend as identified by my special moving average setting colored purple.
If you bought at a, marked in orange, you made money and then it retraced and then came back in the money.
If you sold as marked with the green label,and you failed to take your profit at c, marked in green, you would have been forced to trigger your stop loss and lose.
Again, take profits quickly when against the trend and be slowto get out when with the trend.
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