Tsunami:
Right, now we come a little bit to the mid of the summary – The Tsunami, I call it the Tsunami, you’ll get the reason later on. First of all, I want to talk about the money changers, what they do is – they land you money, when Interest Rates are very low and they create an environment for you to lend money, because it’s easy money, easy to pay back, it’s normally when the economy of the country is really having a good time, and everybody is buying new cars, and new houses, and go on holidays and things like that. Then, at the certain stage there is too much money floating around, so now they’ve got to do something to stop that, people are lending are all over the place. And things don’t balance any more, the one side gets heavier than the other side and then they decide to raise the Interest Rates. Then they start collecting from you. And if your budget was not very nice, you either have to give back your car, or give back your house. And that’s what they do. They create a playing field, where they lend out money, but the reasons for them is to make money.
I want to show something, that I’ll do by illustration, by explaining how I see this. Now, who are the money changers? I call the “the big ones” “the big guys”. I haven’t met one of them yet, I don’t know who they are, fund managers, governments, banks, I don’t know. But somehow, at certain stages they create a sort of environment; I call it “the playing field” in the Forex market. At this specific point you’ll remember, if you go back saying in a year, two or three from now, or even ten years from now, and you take the exact date, today, and you’ll take three weeks back, you’ll see the past three week have been difficult. If you look at the Euro, if you look at the British pound, you’ll see there are a lot of ups and down. That’s “playing field”, there is a lot of emotion going on, there’s a lot of movement going on, but it goes nowhere.
Now, it’s like sitting on a beach, you see people running all over, I can not run after every one, that come run past me. Because he might just play with a ball, it might be just someone running past, so if I get up and run after everyone I am gonna be tired by the end of the day. So, what do I do? I can sit there and I can put on my dark glasses, put on my suntan lotion, and forget about everything. But by doing that the Tsunami might hit me, and I won’t even know that. So, what do I really look for? I look for an unease or a pattern of movement that’s not a part of a playing on the beach. You’ll start to realize, well, people are not playing anymore now, there are some people running toward the gates, so there is something going on. You don’t know what yet, so what do you do? There are basically three things that you can do. You can totally ignore it, as I said put on your sun glasses, and be hit by tsunami. Or, what most of us do, we get up and we appoint a commissioner, of commission, couple of people that must go and find out, why are those people running. And you get yourself deep in to the fundamentals, and you start reading here, and you start reading there, and by the time you figure out: “Oh, it’s a Tsunami”, and you got hit by it. Then it’s too late. That’s a second part.
But, there’s a third part as well, you can run with the people running. And why you running with them, you can ask: “Why are we running?” And you’ll get an answer, if they can’t answer you, at least, you have a choice to decide, I’ll stay with it until it stops, and that is what market is doing. When it runs, you’ve got to be in it. Sometimes you know it’s news, sometimes you know it’s this and that, but sometimes you don’t, as long as you are there. But now comes the main part, you must desern, I’m using the word desern, because desern - is a separation. First of all, you’ve got to recognize, when it’s playing time, like we had now these last three weeks. It was playing time and then, the next step is you’ve got to desern, when the informed are leaving the playground. When those money changers, when they start moving. You’ve got to desern it, it’s a separation, technically, you’ve got to see the emotions on the faces if you are on the beach, they serious. And then you must desern when the playing is about to end. You know it’s gonna end, but you don’t know when. And then I‘ve got this last on B1 of the followers, of the informed. There are people that are informed in this whole playing scenario. And you’ve got to know the motion of the market in terms of its movement, because price is moved by people, by decisions of people. And their decisions make the market run, and why is it running – you don’t know yet, but you have recognized, that playing time, the playing field – is about over. The end is about there, but you don’t know exactly when. And that is what MACD system sort of tells you. Gives you an early indication when playing time is over. And when it runs you’ve got to be on board. That’s very important. And then when it runs it’s got a certain emotion, you just happen to be in that flow, you run with it, because if they want to take you out, they must take themselves out, but they not gonna do that, so you’ve got to be in that flow all the time. And that’s what I’m gonna teach you as well later on. Is to know the market rhythm, and to know when the market is moving, in a certain patter, in a certain rhythm, to stay with it as long as possible. So, remember to desern when the move is on.
Source: (Phillip Nell “4 Hour Strategy )
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