Page 31 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

tee, but if you cannot control your emotions while trading, you will prevent yourself from
reaching your true potential.

Continue to educate yourself and increase your investment knowledge through online training
and tutorials. It is also wise to have a mentor and to join a network of traders that you can work
with as you are learning and once you begin to trade.

MARKET DIRECTION’S THE REASON

What is investor sentiment telling us? The Dow has dropped 10% after the result of the elections.
The concerns over higher taxes on capital gains as well as other potential taxes may be expressing
it. As the Japanese rice traders say, “Let the market tell us what the market is doing."

With the second solid day of selling, the retracement has exceeded the potential support levels
such as the 20 day moving average. The NASDAQ closed today well below any possible support
levels. Yesterday selling was done after a Hanging Man signal. The only potential for the current
uptrend to continue, both the Dow and the NASDAQ needed to close near the high end of their
trading range today. That obviously did not happen.

The short funds become a very viable trade for the near-term. Stochastic have rolled over, making
the recent lows a viable target again. When the market overall has a negative bias to it, finding a
specific sector that is weaker than the others makes for the best possible profit opportunities.
This can easily be done with a simple scanning techniques developed utilizing candlestick signals.
We will discuss the sector possibilities in tonight chat session. After yesterday's Bearish Engulfing
signal in the Dow, even though it was not quite to the overbought condition, it was a clear

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