The market can remain irrational longer then you can remain solvent.
I've noticed a lot of retail forex traders have been shorting the Euro over the last month. They've probably also blown up their account or lost a significant portion of it. Why? Because they've been trading based on the underlying market fundamentals.
Price action does not, nor will it ever, accurately reflect underlying market fundamentals. The sooner you understand this very simple concept, the sooner you can begin to rebuild your account. Moves in the forex market are based on central bank action and investor/trader sentiment more than anything else.
So when you look at the debt crisis in Europe, China coming in for a hard landing, and the fiscal cliff in the United States - don't trade it unless it fits your time horizon. If you typically only hold trades for a couple of days then you need to trade the price action that's in front of you.
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