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LAW OF BALANCE IN YIN YANG METHODS

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rushart

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Law of Balance

1. Background
Investing in the investment sector is one of the sources of livelihood in the 21st century and so on. Forex trading is one of the choices. but based on my observations, there are still many investors who actually suffer losses which in my opinion it should not happen.
2. Causes
Many of the actions of investors can cause losses in trading, including the lack of knowledge about 3M, namely:
A. Method
B. Mental (emotion)
C. Money management

A. Method
Based on observations and facts that occur in the field, there are many investors / traders who invest in forex without having enough knowledge / methods. They feel quite satisfied and even feel like a top-notch trader with only technical and fundamental knowledge. Even though that's not enough.
Now allow me to share a little more knowledge than just these two things. A trader must know the direction / trend and the starting point of a movement (entry) until the end of the movement (exit).
I am sure that most traders only refer to the graph and the indicators that appear on the computer screen, even though it is well realized or not, the graph appears or occurs after the sale and purchase.
While selling - buying that is done by the market usually occurs after the news release. This news must be issued by policy makers in each country concerned. Why ? Because there is a range that must be maintained by each country for the sake of maintaining a balance between currencies.
There is no country that will allow the exchange rate to be too expensive or too cheap. Because if this happens, there will be no transactions between countries in this world. For this reason, I conclude that the news only functions as a trigger for market action to achieve a price balance.
Now I want to invite you to analyze a little. Can you imagine what would happen if a country allowed the value of its currency to be determined by the market. So naturally the country will experience total bankruptcy. There will be no development, transactions between countries and so on. Therefore all countries must determine the highest and lowest prices for their respective currencies, which is called volatility. This is where a country determines its macro economy. Volatility is set for each year, semester, quarter, month, week, day to minute. These are the points that we must know.

When the action of selling - buying (market) tries to exceed or exit from a predetermined point both above and below, then the government of a country through policy makers will issue news whose effect will prevent that from happening. Vice versa, if the price that has been determined is feared not to be touched by the market, the news will be issued to force the market to touch that price. That's why the news effect only applies instantly.

B. Mental / emotional
Mental and emotional readiness is needed in trading. When we trade only armed with speculation and feeling alone, then our mental and emotional automatic will not be ready in the face of movements that are not clearly legible. Often we are willing to sit at the computer just to hope that our minus position becomes a plus. When it's already added, we still hope that there can be more to pay for the loss of the previous transaction. Even if we don't know the stop point, then the plus one will return to minus. And so on until an auto cut occurs. But if we can know the starting and ending points, then naturally we will have the mental and emotional readiness to transact.

C. Money Management
The last thing to know is how we manage our finances in making transactions so that there is no loss. When there is a loss we must be able to reverse the situation so that we can change the loss into an advantage.

That is the outline of a guide for traders to invest in order to maximize profits.




Linkback: https://www.forex.zone/forex-education/29/law-of-balance-in-yin-yang-methods/1464/
#1 - February 11, 2019, 05:40:22 PM
« Last Edit: February 16, 2019, 03:02:18 PM by rushart »

rushart

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BACKGROUND CONCEPT OF BALANCE

INTERNATIONAL MONETARY EVOLUTION AND FINANCIAL SYSTEMS

The world monetary system began as David Hume introduced, namely: specie-money, the Gold Standard pioneered by the British post-revolutionary industry of 1885-1914, the Bretton Woods System promoted by American and British collaboration after World War II (1944), floating exchange rate and monetary unions pioneered by European Union countries.
Specie-money is a terminology used by David Hume to explain the mechanism of trade transactions in the international economy when using a standard exchange rate of metals such as silver, bronze, gold and others (Helleiner, 2002: 213). This system then fails when there is a gap between the quantity of metals owned by central banks in each country that is not balanced with the increasing number of metals that just enter by mining operators operating trans nationally. The collapse of specie money was later replaced by the gold standard era.
#2 - February 15, 2019, 04:33:52 AM

rushart

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Gold Standard is a monetary system that was first pioneered by Britain since the industrial revolution I and II until 1914. That is, the exchange rate of international trade and economy was determined using gold. A country's gold reserves are stored in their respective central banks. If a local businessman wants to do international transactions, he must exchange money (domestic or local) with the gold at the central bank. The problem arises when the gold reserves at the central bank are not enough to meet the required liquidity. The second problem arose because of the reduced British hegemony due to the economic collapse due to World War II. The third problem, the emergence of the United States as a new economic power that replaces the role of Britain. When the British economy is no longer able to support the gold standard monetary system, the monetary system is no longer effective. Evidently, the gold standard actually prevented the country from intervening when it came to a crisis. Gold standard was created to create an economic climate as freely as Adam Smith aspired. The Great Depression of 1930 was essential evidence that the market could not be given full trust in "invisible hand" regulating itself.
#3 - February 15, 2019, 02:53:59 PM

mohammad mmufroil

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Quote from: rushart on February 15, 2019, 04:33:52 AM
BACKGROUND CONCEPT OF BALANCE

INTERNATIONAL MONETARY EVOLUTION AND FINANCIAL SYSTEMS

The world monetary system began as David Hume introduced, namely: specie-money, the Gold Standard pioneered by the British post-revolutionary industry of 1885-1914, the Bretton Woods System promoted by American and British collaboration after World War II (1944), floating exchange rate and monetary unions pioneered by European Union countries.
Specie-money is a terminology used by David Hume to explain the mechanism of trade transactions in the international economy when using a standard exchange rate of metals such as silver, bronze, gold and others (Helleiner, 2002: 213). This system then fails when there is a gap between the quantity of metals owned by central banks in each country that is not balanced with the increasing number of metals that just enter by mining operators operating trans nationally. The collapse of specie money was later replaced by the gold standard era.
interesting to see if a theme like this is discussed, because things like this that make traders know how behind MT4 graphics it turns out to save a complex bit of a country's economy, such as the risk of trade wars and the impact of currency strengthening which will also affect the country , the finger is very important that the balance is carried out for the sustainability of a country's growth
#4 - February 15, 2019, 03:07:59 PM

rushart

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Quote from: mohammad mmufroil on February 15, 2019, 03:07:59 PM
interesting to see if a theme like this is discussed, because things like this that make traders know how behind MT4 graphics it turns out to save a complex bit of a country's economy, such as the risk of trade wars and the impact of currency strengthening which will also affect the country , the finger is very important that the balance is carried out for the sustainability of a country's growth


Did you know that everything happening in the news is merely a conspiracy with the aim of balancing each country's currency against another country?

#5 - February 15, 2019, 03:31:06 PM

mohammad mmufroil

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Quote from: rushart on February 15, 2019, 03:31:06 PM

Did you know that everything happening in the news is merely a conspiracy with the aim of balancing each country's currency against another country?
it can be like that, because the fact is that a very sensitive forex market moves more volatile when there is news from a country related to that currency, besides that it can attract investors to the country
#6 - February 15, 2019, 05:51:49 PM

rushart

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Quote from: mohammad mmufroil on February 15, 2019, 05:51:49 PM
it can be like that, because the fact is that a very sensitive forex market moves more volatile when there is news from a country related to that currency, besides that it can attract investors to the country

After you realize that, do you still doubt my statement that what drives prices is news, not supply and demand? And the news is issued by each country because there are upper and lower prices that each country must guard against other countries!
#7 - February 16, 2019, 02:59:39 AM

rushart

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The birth of The Bretton Woods system was a consolidation of the dream of British economist Keynes and American White economist. These two economists designed the Bretton Woods values in such a way that they were able to bridge the economic principles of liberalism and the principles of a domestic-oriented economy. This effort is then often known as "Embedded Liberalism".
The hope is to create an economic order that is able to accommodate the achievement of the values of peace between nations in order to avoid war while fighting domestic unemployment and further advancing the domestic economy. The Bretton Woods monetary system provides large-scale investment fields for American entrepreneurs through the corporate economic expansion of MNCs and / or TNCs (Magdoff, 1978). The investment is contained in short-term investments accommodated by the International Monetary Fund (IMF) and long-term for reconstruction and development of the International Bank for Reconstruction and Development (IBRD). In trading activities, the Bretton Woods system allows countries that sign it to join in a discussion forum facilitated by the GATT (General Agreement on Tariff and Trade) to reduce economic restrictions and issue a number of bilateral trade policies (Freiden, 2006).
The Bretton Woods system ended when the United States could no longer maintain dollar liquidity as well as the threat of market distrust. The market witnessed the United States when the Vietnam war was so easy to face war financing by simply printing dollars. Such a large amount of dollar liquidity is not comparable to American gold. This is what makes the United States begin to realize that if this situation continues then the threat of inflation and crisis arises due to too many dollars circulating in the market. The abundant dollar in the market has the potential to reduce the confidence of the dollar exchange rate against gold (Helleiner, 2002: 222).
During the entry into force of the Bretton Woods system, the United States has succeeded in exploiting these opportunities to improve its economy at a very significant level. In the 1960s the United States was able to maintain the stability of the international economy. The United States emerged significantly as an actor in world economic hegemony. The United States involved in the Vietnam war continued to try to reduce the budget deficit by simply printing dollars. As a result, the dollar continues to overflow over gold reserves. In order to avoid a crisis while maintaining the economy, the American national government then decided to abandon the "exchange rate of gold with the dollar" in the 1970s.
The policy is widely seen as a form of reduced leadership ability possessed by the United States as an international economic hegemony. However, this is later rejected by Susan Strange (1986). Strange called the policy political maneuver. That is, the hegemony of the international economy of the United States is essentially unchanged, only the interests of leading the international economy have changed (Helleiner, 2002: 223).
#8 - February 16, 2019, 07:33:52 AM

rushart

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After the Bretton Woods system ends, each country is given the same responsibility for each exchange rate. Thus, the exchange rates of each country are allowed to fluctuate according to the transactions that occur. this system is known as the "floating exchange rate". This system was also allegedly one of the efforts to obstruct investors' short-term speculations. With the fluctuating exchange rate, it is as if investors must gamble in various instabilities. Therefore, the term "casino capitalism" appears so often results in short-term investments that are risky to change in position and long-term investments that are "misaligned" (Helleiner, 2006: 225).

In addition, this also prevents the occurrence of capital flight, namely domestic capital that flies to foreign countries while the domestic economy is hit by a crisis. In addition, the floating exchange rate is able to allow external imbalances to be applied continuously without much help or control. Three of the above have been problems that the previous monetary system failed to anticipate. (Helleiner, 2002). The floating exchange rate allows the government not to easily play the devaluation and revaluation of their respective currencies because the exchange rate will continue to fluctuate itself (Helleiner, 2002: 224).
#9 - February 16, 2019, 02:34:39 PM

rushart

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So that in its development, countries in certain regions want more stable currency integration among several countries. For example, the European Union initiated a form of monetary integration (EMS, European Monetary System) with a single currency in 1970 and was realized in 1999. Since 1999, countries in the European Union have used the communal Euro currency. The European monetary system triggered more intense investment speculation as a result of the European economic crisis in 1992-3. There is a lot of controversy, the formation of the EMS is accused of having a political impact on Germany as America has on Bretton Woods (Helleiner, 2006: 228 ).
#10 - February 23, 2019, 07:41:02 AM

Hesti

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Quote from: rushart on February 11, 2019, 05:40:22 PM
Law of Balance

1. Background
Investing in the investment sector is one of the sources of livelihood in the 21st century and so on. Forex trading is one of the choices. but based on my observations, there are still many investors who actually suffer losses which in my opinion it should not happen.
2. Causes
Many of the actions of investors can cause losses in trading, including the lack of knowledge about 3M, namely:
A. Method
B. Mental (emotion)
C. Money management

A. Method
Based on observations and facts that occur in the field, there are many investors / traders who invest in forex without having enough knowledge / methods. They feel quite satisfied and even feel like a top-notch trader with only technical and fundamental knowledge. Even though that's not enough.
Now allow me to share a little more knowledge than just these two things. A trader must know the direction / trend and the starting point of a movement (entry) until the end of the movement (exit).
I am sure that most traders only refer to the graph and the indicators that appear on the computer screen, even though it is well realized or not, the graph appears or occurs after the sale and purchase.
While selling - buying that is done by the market usually occurs after the news release. This news must be issued by policy makers in each country concerned. Why ? Because there is a range that must be maintained by each country for the sake of maintaining a balance between currencies.
There is no country that will allow the exchange rate to be too expensive or too cheap. Because if this happens, there will be no transactions between countries in this world. For this reason, I conclude that the news only functions as a trigger for market action to achieve a price balance.
Now I want to invite you to analyze a little. Can you imagine what would happen if a country allowed the value of its currency to be determined by the market. So naturally the country will experience total bankruptcy. There will be no development, transactions between countries and so on. Therefore all countries must determine the highest and lowest prices for their respective currencies, which is called volatility. This is where a country determines its macro economy. Volatility is set for each year, semester, quarter, month, week, day to minute. These are the points that we must know.

When the action of selling - buying (market) tries to exceed or exit from a predetermined point both above and below, then the government of a country through policy makers will issue news whose effect will prevent that from happening. Vice versa, if the price that has been determined is feared not to be touched by the market, the news will be issued to force the market to touch that price. That's why the news effect only applies instantly.

B. Mental / emotional
Mental and emotional readiness is needed in trading. When we trade only armed with speculation and feeling alone, then our mental and emotional automatic will not be ready in the face of movements that are not clearly legible. Often we are willing to sit at the computer just to hope that our minus position becomes a plus. When it's already added, we still hope that there can be more to pay for the loss of the previous transaction. Even if we don't know the stop point, then the plus one will return to minus. And so on until an auto cut occurs. But if we can know the starting and ending points, then naturally we will have the mental and emotional readiness to transact.

C. Money Management
The last thing to know is how we manage our finances in making transactions so that there is no loss. When there is a loss we must be able to reverse the situation so that we can change the loss into an advantage.

That is the outline of a guide for traders to invest in order to maximize profits.
Hi , what is yin and Yang methods ? Is that 3M calls yin and Yang method? 
#11 - February 23, 2019, 11:32:04 AM

rushart

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Quote from: Hesti on February 23, 2019, 11:32:04 AM
Hi , what is yin and Yang methods ? Is that 3M calls yin and Yang method?
Hi... YIN YANG methods is a result of my findings after all this time observing the world of forex. Howl long tou've been in forex?
#12 - February 24, 2019, 02:46:17 AM

Purple

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Quote from: rushart on February 11, 2019, 05:40:22 PM
Law of Balance

1. Background
Investing in the investment sector is one of the sources of livelihood in the 21st century and so on. Forex trading is one of the choices. but based on my observations, there are still many investors who actually suffer losses which in my opinion it should not happen.
2. Causes
Many of the actions of investors can cause losses in trading, including the lack of knowledge about 3M, namely:
A. Method
B. Mental (emotion)
C. Money management
very interesting post, I quite understand the explanation you are making what pip do you use for the placement of SL and TP I hope I don't miss it for you to explain the next day
#13 - April 26, 2019, 04:40:24 PM
« Last Edit: April 27, 2019, 01:37:27 AM by Mikser »

Fantastic4

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Very good method or technique sir, I like it :D
#14 - May 07, 2019, 07:20:05 AM

Lopata

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I've heard of the balance strategy that is, but a little complicated in my opinion, what I want to say is when trading should be balanced between capital with lots or open positions that we use so as not to occur large losses
#15 - July 20, 2021, 03:21:54 AM
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