Adaptation to the Realities of the Market Adaptation to the Realities of the Market:

"Hey Joe!
Do you think adaptation to the realities of the market is the most important thing?
Many times in the past I�ve written about the need to adapt, the need to be able to change your behavior relative to the market because the markets are ever changing.
I�ve stated that mechanical systems may be workable, but for only a short time relative to the life of markets. You must learn to trade what you see and to understand what you see on a chart.
When I first began trading there was no such things as futures contracts for foreign currencies. Why didn�t they exist? Because there was no need for them! In the 1970�s all that changed when the US dollar went off the gold standard and began to float against other currencies. Following that, the Chicago Mercantile Exchange began to create currency futures to provide a place where currency traders could hedge the risks associated with dealing in foreign currencies. Some of these risks are direct and some are indirect. Direct risk is involved for those who deal directly in foreign exchange. Indirect risk involves companies who export or import and receive payments or make payments in the currency of another country. "  ¶ 12:53 PM