“It takes a very determined and self-disciplined individual to succeed in this high-risk and high-stress profession. You really do have to live and breathe the… market to have any chance at succeeding.” --- Josh DiPietro
Hello:
This is an update on some of the movements on the markets and what I’m doing about them, plus my losses and profits. The analyses are based on daily charts, looking at the Big Picture, though my entries are on a smaller timeframe. My preferred leverage is 1:100 and my position size is 0.01 lots for each $1000. My maximum drawdown in a week is 3% (worst case scenario). I use the Price Behavior rules for strategic decisions and customized indicators for tactical entries. I open primary positions without predetermined exit target in mind, riding the trend for as long as it continues. The value of patience will forever be emphasized. As long as I stick to my rules and keep my risk low, I’m immune to fear.
Online trading is now very popular and there was nothing like that about a few decades ago. In the 1990s online trading became possible – and it was probably one of the biggest evolutions yet. As a result, millions of enthusiasts took up day trading. It was absorbing and fun - like gambling and you could do it from the privacy of your own home, with the possibility that it might even make your rich. The huge leap in technology meant that traders no longer needed to pay high trading costs, or listen to what many saw as misguided advice from their brokers, instead they could research the markets themselves, and they buy and sell with a single keystroke. Everyday, thousands of day traders could take their positions in front of their PCs and trade against the best traders on this planet, including the most powerful trading institutions. Of course, this led to some winners and some casualties.
AUDUSD
Primary trend: Bullish
The Aussie reached parity with the Greenback, and quickly reversed. If the bullish run would continue, the psychological level of 1.0000 might be broken; the level that later might serve as a support. You can’t tell when a trend would actually end, but when the AUD is finally weakened against the USD, the downfall would be of a great magnitude. And this is what I’m waiting for.
NZDUSD
Primary trend: Bullish
This pair is still in a bullish trend although the bearish pressure is becoming more and more noticeable. If the downside bias eventually prevails then I’d like to get in at a predetermined price. This price would then be shown. Showing my readers my trading activities is no different to trading when I’m alone. If I couldn't do this, it would be like claiming to be a great actor who can only perform when nobody is watching them!
EURCAD
Primary trend: Bullish
There’s a kind of threat to the bullish outlook on this market. But we need to know that in an uptrend, there’ll be occasional pullbacks (a trap to novice traders), only to see that the market resumes its movement in the direction of the trend. If the downside reversal is significant enough to generate a short signal on the chart, then I’ll close the present trade and find a way to go into the opposite direction. Please note that no immediate action should be taken whenever there’s a minor break to the downside and the price is only slightly below the upward moving line since this is often short-lived. It’s only a sustained break that forces the trader to act.
Order: Buy Limit
Entry date: September 9, 2010
Entry price: 1.3100
Initial stop: 1.2950
Current stop: 1.3819
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 1122 pips
Percentage growth: 11.2%
EURAUD
Primary trend: Bullish
The price on this pair is currently exuding some tricky moves. My long-term strategy has generated a ‘sell’ signal while the price is currently in a consolidation mode/acceptance zone. I still prefer to go long since the market is moving kind of sideways and the eventual weakness in the AUD (the Aussie would eventually weaken) would only add more strength to a new bullish momentum on the market. There’s now a form of Bollinger squeeze on this market. Whatever happens, make sure you utilize your knowledge of survival skills. With good money management tools at your disposal, you’ll never be sorry.
Order: Buy Limit
Entry date: October 1, 2010
Entry price: 1.4000
Initial stop: 1.3850
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Pending
Profit/loss: N/A
Percentage growth: N/A
EURNZD
Primary trend: Bullish
In spite of the zigzag movement of this instrument, the bullish outlook is still valid. The price still revolves around the SMA 20 which tends to act as a support in an uptrend. The ADX 20 level is suggesting a quite market. +DI is still above its –DI counterpart. If bearish reversal is strong enough, then I’ll go short. But I think this cross would ultimately experience the same fate like EURUAD; for they’re positively correlated most of the time.
AUDJPY
Primary trend: Bearish
My pending order on this cross was filled, though the market is currently indecisive. The anti-cyclical Yen would have to give way, for me to win. With a factor of time the fate of this trade would soon be known. No matter what happens, there are predetermined actions to be taken whichever the way the price takes. Whenever a trader wins, he/she feels the thrill of victory, and a losing trader feels the agony of defeat. May you always win on the battlefield of the financial markets!
Order: Sell Limit
Entry date: October 19, 2010
Entry price: 80.50
Initial stop: 82.00
Current stop: 80.50
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 121
Percentage growth: 1.2%
Conclusion: I shake my head when I see people talking about what don’t matter in trading. How often do traders find themselves holding on to things that are as valueless as a piece of hair? You need to know the trading rules that are of great value and the great art of being a market player; you need to know what can hurt you and what can help you while trading. Many an inexperienced trader stops trading because they’re upset by poor performances that are in reality good performances. The problem is that they have little capital and their results are by consequence poor in absolute terms. Many beginning traders start trading during the worst years and they don’t realize that they simply have to trod ahead and slug it out.
As far as I’m concerned, there’s no going back in trading. I’ve learned a lot and I’ve gone too far as well. Another quote from Josh DiPietro concludes this article. It’s to do with the reason why he refused to quit trading completely despite a tough and discouraging beginning. He’s now a consistently successful trader. Hope you can learn something from him:
“I have invested blood, sweat, and of course cold-hard-cash into my struggle. Why stop after I learned so much? My mistakes were very expensive, so I learned to capitalize on those lessons.”
Your questions and opinions are highly welcome.
Thank you.
With best regards,
Azeez Mustapha
Forex Signals Strategist, Funds Manager &Coach
Senior Analyst
FX Instructor, LLC
Email: amustapha@fxinstructor.com
Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
Nice trading tips are available at: www.ituglobalforex.com
And my past articles are also available at: www.ituglobalforex.blogspot.com
Yahoo! Messenger ID: saazalmu
NB: There is risk of loss in trading, but it is possible to be a successful trader.Get my
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