"Move out of your comfort zone. You can only grow if you are willing to feel awkward and uncomfortable when you try something new."- Brian Tracy
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. My preferred leverage is 1:100 and my position size is 0.01 lots for each $1000. My maximum drawdown in a week is 2% (worst case scenario). I use the Price Behavior rules for strategic decisions and customized indicators and a shorter timeframe for tactical entries. I believe that a ‘buy’ signal that fails is a ‘sell’ signal; and a ‘sell’ signal that fails is a ‘buy’ signal. 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.
The contents of my articles may be at odds with certain sugarcoated promises from some marketers, but never with established trading fact. Sugarcoated ideas from some marketers come and go; the trading facts remain. Truly, patience matters a lot when trying a new trading system. That’s why 30 days aren’t enough to determine the validity of a trading strategy. When trying out a new system on a live market, you may do yourself a favor by desisting from using demo accounts from brokers that allow only one-month validity on their demo accounts. It’s very much better to use demo accounts from brokers who allow indefinite access to those accounts. “Sometimes even the best performing systems can go through a period of downturn. If you were to join a system during one of these periods you might write it off as a bad job when in fact it’s just a poor run which statistically can happen. On the other hand, one trade does not make the system, so if you start off incredibly well don’t jump in too far too soon. The best way to know how to deal with such periods is the strength of the customer service from the system vendor. In my experience, customer service and integrity go hand in hand,” declares David Evans. You have to allow the law of averages to work in your favor, so that across a series of trades, you will make an overall profit.
AUDUSD
Primary trend: Bearish
The former bullish outbreak in the context of a downtrend on this pair wasn’t negligible, but the level 1.0000 has proven to be an effective resistance. As I had expected, the market resumed its bearish journey. But if the 1.0000 level is reached again, thus reaching parity with the USD, it may be the beginning of a serious bullish move, especially for the next year. My last order on this pair was a flop.
Order: Sell Limit
Entry date: December 8, 2010
Entry price: 0.9810
Initial stop: 0.9910
Current stop: N/A
Exit price: 0.9910
Exit date: December 13, 2010
Status: Closed
Profit/loss: -100 pips
Percentage growth: -1%
NZDUSD
Primary trend: Bearish
This pair was in the midst of a bullish momentum which, if course, nearly violated the present primary bearish bias. Nonetheless the price has now plummeted seriously. When trying to pinpoint an early trend and ride it, a few strategies are needed or just one. I broke even with my last trade on this pair.
Order: Sell limit
Entry date: December 1, 2010
Entry price: 0.7505
Initial stop: 0.7405
Current stop: 0.7505
Exit price: 0.7505
Exit date: December 8, 2010
Status: Closed
Profit/loss: 0 pips
Percentage growth: 0 (breakeven)
EURCAD
Primary trend: Bearish
This market is still experiencing sideways and choppy movement, but there was a kind of seller’s attempt to push the price lower. I once thought that if the pushing up was serious enough, then it might be the beginning of another bullish dominion. But look! There’s been a serious panic selling on this instrument. I’m currently looking to enter at an optimal price.
EURAUD
Primary trend: Bearish
The long-term bias is still bearish because it appears that the AUD can’t yet withstand the strength of the EUR. The bulls were formerly trying extremely hard to raise the price, but their attempt failed. Any trusted ‘sell’ signal on this cross is presently not yet confirmed. This is because the presence of buyers is still noticeable. Whatever the direction the market goes after you enter, you can always keep calm; knowing that your risk is very small. High risk might make you cry on top of your voice when a trade goes against you, and crying in the front of your PC isn’t a great thing.
Order: Buy
Entry date: December 14, 2010
Entry price: 1.3429
Initial stop: 1.3329
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: -36 pips
Percentage growth: -0.3%
EURNZD
Primary trend: Bearish
The bias is currently bullish, but the primary trend remains bearish. The NZD is now hopeless against the EUR. If the present scenario continues, the primary trend may turn bullish. The market has been so volatile and I’m only looking for a way to go long. The price is now above the SMA 20. The ADX 20 level shows that the market volatility is again increasing, now moving to the upside. +DI has crossed its –DI counterpart to the upside (but again, significantly). My pending order on this market has been cancelled.
Order: Buy Limit
Entry date: December 8, 2010
Entry price: 1.7580
Initial stop: 1.7480
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Cancelled
Profit/loss: 0
Percentage growth: N/A
AUDJPY
Primary trend: Bullish
The long-term trend remains bullish – is spite of the bears’ effort. This instrument is slowly, but steadily inching its way up. The northward journey may or mayn’t continue. To succeed on the markets, you have to learn how to take the rough times with the smooth. I got an open long trade on this instrument.
Order: Buy
Entry date: December 1, 2010
Entry price: 81.67
Initial stop: 80.67
Current stop: 82.61
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 184 pips
Percentage growth: 1.84%
Conclusion: In one of my past articles titled “Does The Forex Trading Work?’’ I mentioned a bank manager who said he didn’t believe in Spot Forex. After going thru some dramatic experiences, he was introduced to online trading by a trusted friend. When he finished going thru a beginner’s course offered by Babypips.com, he was convinced. He’s now started personal training from a gifted trading coach. He’s lucky to have started on the right course.
The quote below ends this article:
“Remember that trading is not in essence a game of being right, but rather a strategic chess match of longevity… In addition to the required and necessary skill-sets involved in consistent speculative trading, maintaining a constant and disciplined approach to capital preservation is ultimately the number one objective for any professional in the field. Failure to adhere to these risk management principles will typically result in ongoing frustration and concern for any individual aspiring to attain market success”. – 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 Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
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.
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