
Originally Posted by
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I have thought of this also.... Somebody puts on every radio station and every tv station and tells EVERYBODY to buy EUR/USD in 1.4000 and wait till it reaches 1.8000 to sell it. Imagine if this plan was followed by everyone? We'd all make millions! The point is, it wouldn't work. When the price reaches 1.8000, it becomes a game of who sells it the quickest. If you are the last person to sell, you drop all your money because the 60 million individuals who sold it two seconds before you have shrunk the price back down.
So that you get clever... Hmmm... rather than selling at 1.8000, I'll sell at 1.7000!! That way I will not have to compete with 60 million individuals when the price reaches 1.8000! However, the guy next to you're thinking, I'll sell this sucker in 1.6000 to play it safe. And so on.... So what essentially happens is that individuals sell off it at all sorts of different levels, and also the price goes haywire.
The exact same principle applies if 100 million people followed the exact same indiors in the exact same moment to buy the eur/usd. They wouldn't wait for the indior to demonstrate a sell signal to take profit. Various people would sell far before then, to beat other traders to the punch.
This theory explains the law,'' For every winner, there is a loser. In order for me to live (eat), something must die... whether it is a chicken or a cow, etc..