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Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets by Ed Ponsi

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CHAPTER 19
Trading Lessons from Life
If trading were exactly like real life, then it would be much easier. Unfortunately, trading and the real world differ in many ways. Trading is counter-intuitive because what seems or feels right is often wrong, and vice versa.
For example, when you’re shopping and you see that an item you want to buy is available at a low price, that’s usually a good thing. In the world of trading, when the price or exchange rate seems cheap, it is not always a bargain—it could mean that there is something wrong.
Although the lessons of life sometimes betray us in the world of trading, there are some aspects of life that can teach us a great deal about trading.

PANIC AT THE BEACH

One of my best friends in the world is a guy named Marlio, popularly known as “Mongo” back in high school, who moved west to Los Angeles to pursue a career as a screenwriter.
One time, after giving a seminar in L.A., I caught up with my old friend, and we hit the beach for some body surfing in Malibu. We rode some nice waves, and as the day progressed, they became bigger and rougher.
Eventually, I caught a big wave and sailed toward the beach. Suddenly, the surf became violent and slammed me against the ocean floor. I could feel the crush of the wild surf as I was tossed about like laundry on a spin cycle.
After being thoroughly “Maytaged,” I struggled to reach the surface. As I finally caught my breath, the reality sank in. I had lost my swim trunks. I was naked in public, on ...

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