in this business you are dealing with a) information and b) psychology.
The "b" part is both psychology on the part of others, which you have to understand, and YOUR OWN PSYCHOLOGY, which is behavior, which you have to control.
If you don't understand this then this business can frustrate you, make you crazy and lead to losses and you, eventually, quitting.
On the other hand if you DO understand this, it can be extremely rewarding and even FUN.
Let me explain.
The euro is falling.
Why?
Positions are built up in advance of the event, in this case, the ECB meeting and their decision.
IT WAS WELL TELEGRAPHED THAT THEY'D BE ANNOUNCING AN END TO ASSET PURCHASES.
So, all the zombies bought the euro in advance thinking they were smart. The problem is, they all did the same thing.
The ECB announced and the euro sold off.
Here is reality.
1) NOTHING HAS CHANGED. ECB bond purchases will continue thru September, then they will taper and continue thru the end of the year. So, there has been NO CHANGE IN CONDITIONS.
2) INTEREST RATES REMAIN UNCHANGED. The ECB did not raise rates, nor did it say it would do anything on rates until at least next summer.
3). Eurozone austerity continues.
4). Eurzone trade surpluses continue.
In a nutshell, all these things REMAIN BULLISH FOR THE EURO.
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