“For every buyer, there’s usually a seller. For every trade you make, predicting that the market will go up, there’s usually another person predicting it will go down.”
Hello:
I previously had it in mind to post an article about FEAR – the trader’s most dangerous enemy, before I remembered it’s high time I posted the summary of my monthly long-term strategy signals. The article about fear may be posted next Friday. My long-term trading signals are based on my weekly trading analyses as contained in my articles. GBPJPY/USDCAD hedging strategy and other shorter-term strategies remain my secrets, and a benefit to my subscribers and my trainees.
1. Instrument: EURAUD
Order: Sell
Entry date: November 11, 2010
Entry price: 1.3570
Initial stop: 1.3670
Current stop: 1.3570
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 65 pips
Percentage growth: 0.6%
2. Instrument: AUDJPY
Order: Sell Limit
Entry date: October 19, 2010
Entry price: 80.50
Initial stop: 82.00
Current stop: 79.50
Exit price: 79.50
Exit date: November 1, 2010
Status: Closed
Profit/loss: 100 pips
Percentage growth: 1%
3. Instrument: AUDUSD
Order: Sell
Entry date: November 11, 2010
Entry price: 0.9817
Initial stop: 0.9917
Current stop: 0.9717
Exit price: 0.9717
Exit date: December 2, 2010
Status: Closed
Profit/loss: 100 pips
Percentage growth: 1%
4. Instrument: AUDUSD
Order: Buy
Entry date: December 1, 2010
Entry price: 0.9699
Initial stop: 0.9599
Current stop: 0.9599
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 90 pips
Percentage growth: 0.9%
5. Instrument: NZDUSD
Order: Sell limit
Entry date: November 23, 2010
Entry price: 0.7735
Initial stop: 0.7835
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Cancelled
Profit/loss: 0 pips
Percentage growth: N/A
6. Instrument: EURCAD
Order: Buy Limit
Entry date: September 9, 2010
Entry price: 1.3100
Initial stop: 1.2950
Current stop: 1.3819
Exit price: 1.3975
Exit date: November 8, 2010
Status: Closed
Profit/loss: 875 pips
Percentage growth: 8.7%
Summary: I’d like to conclude by calling your attention to the inherent pitfalls in taking economic news too seriously. Fundamental analysts seem to have reasons for whatever the markets do. If the Euro becomes very weak, they’ll have reasons for that. If the Euro becomes suddenly strong, they’ll also pinpoint reasons for the strength. But a technical law says that whatever goes up must come down, since there’s no such thing as everlasting trend.
No matter what the market does, you’ll retain your socks if you can cut your losses and run your profits. Why should you be giving yourself sleepless nights when you don’t have 100% assurance of the effect of any news items? I’ve come across hugely successful hedge funds managers who don’t even care about any news items. One of their secrets lies in effective risk control plans. This is one reason why I seldom mention economic issues in my analyses (though I’m always aware of them), since I know full well that my survivability has nothing to do with what’s happening anywhere. It’s pretty possible to know about economic issues and still find trading very hard. Successful traders make money whatever the markets do, so why the headache about any news? According to Sam Evan, trading Forex data can certainly be a fool’s game as the market reactions to the news were often erratic and unpredictable in the majority of cases. One more quote from him is below:
“I do trade the news of the Fundamentals, but instead I choose to trust in the Technical charts and wrap my strategy around the simple laws of Supply and Demand governing dynamics. Using this approach, my life has been far easier…. Trying to read between the lines of major news releases and economic indicators is pretty much an impossible job, as data can often skew the price violently and take us out of a trade with huge slippage for a loss… I advise my students in the very same way. I like to keep things simple across the board and allow others to make things complicated. News is just a part of every day market price action; nothing more, nothing less. The edge truly lies in the objective analysis of price and that will never change.” - Sam Evans
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
Get my trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
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