“Protect yourself. Don't worry that the market movers will see your stop and come to get it. Most of you… are not big enough to attract the market movers. Besides, if you trade correctly, you will not see your stop run very often.” – Joe Ross
Hello:
Why should a trader worry about something inevitable? You need to get rid of the mindset that you can’t just take a loss. Why? Because if you don’t, your trading career will be short-lived. One must be grateful for the existence of stop orders, since there’ll still be money available even in case of a series of losses, to continue pursuing a trading plan. Don’t run your losses; and above all, there’s a need to provide the necessary rational confidence and discipline to follow a system rules while reducing the effect of emotions when making trading decisions. Even, the best soccer team in the world would suffer occasional defeats. The aim of any good strategy is to make as much as possible in a good year or month and to lose as little as possible in a bad year or month.
AUDUSD
Primary Trend: Bullish
The pair has moved up by over 600 pips since last week, following a sharp sell-off which occurred a result of the natural disaster in
NZDUSD
Primary trend: Bullish
The Kiwi has gained serious strength against the Greenback – just as the Aussie has done (the same factors have the same effect on both pairs). Once you’ve an idea of why a price moves in the context of an overall trend, then see if it makes sense to buy or sell.
EURCAD
Primary trend: Bearish
This is a real battle of bulls and bears: the former would have a temporary victory but later capitulate, and vice versa. The price is falling as a result of the weakening of the Euro against the CAD. If the ultimate target seems to be the 1.3500 level and if it’s broken, the bearish run is expected to continue. Otherwise, the price would rally.
EURAUD
Primary trend: Bullish
I had a short trade on this cross. The cross reached a peak of 1.4325 in March before a strong bearish move began. If the Australian currency continues its strength, then the price could eventually reach level 1.3000. If you’re riding the trend, the looser you’re willing to trail, the better your chances of capturing bigger moves.
Order: Sell
Entry date: March 17, 2011
Entry price: 1.4309
Take profit: 1.3709
Initial stop: 1.4509
Current stop: 1.4009
Exit date: March 28, 2011
Exit price: 1.3709
Status: Closed
Profit/loss: 600 pips
EURNZD
Primary trend: Bullish
This instrument is weak at the present; in the context of an uptrend. The price has now gone below the SMA 20. The ADX 20 level is showing a trend which is not very strong. +DI has gone below its –DI counterpart. It looks like the market is presently around a strong demand level, and it might make sense to wait for more action before a trading decision is made..
AUDJPY
Primary trend: Bullish
From March 10 to March 16 this year, the price of this market fell by over 900 pips, only to be followed by a rise of over 1100 pips in 10 days. This came as a result of the massive selling of the Yen by world powers. The Forex markets are interesting because of opportunities that abound round the clock. If you’re looking to get involved in the Forex market but feel as though you don’t have the time – that’s clearly a poor excuse (given the fact that it’s a 24-hour market).
Conclusion: A hypocrite is someone who acts like something he isn’t. In his book The Practice of Piety, Lewis Bayly, chaplain to England’s King James I, said that “one who hopes to effect any good by his writings” will find that he will “instruct very few…. The most powerful means, therefore, of promoting what’s good is by example…. One man in a thousand can write a book to instruct his neighbor…. But every man can be a pattern of living excellence to those around him.” With humility and unconditional acceptance of reality, I’ve always written that losses are inevitable, but the most important thing is to avoid a margin call and ultimately gain more than is lost. My clients have a first-hand access to my trading accounts and witness this unavoidable truth. For those who talk about their profits only and keep their mouth shut about their losses, it’s like the case of a blindman. The blindman who says he’s asleep when in fact he’s awake deceives himself; when he’s awake, whom does he see?
I’ll end this article with quotes from Will de Lucy:
1. “The key word is discipline. If you don’t have this you won’t have control over your trading in the long run… It isn’t important to make a lot of money but to work consistently… To achieve this aim, you obviously need discipline. But expectations of achievable returns ought to be realistic. ”
2. “You’re professional when over longer periods of time profits are made constantly and steadily. Obviously, the size of these profits depends on the base capital and the position sizes.”
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
Are you facing any challenges in trading? You might want to explore the secrets of markets wizards and duplicate their success. Get the secrets from my past articles at:
www.fxinstructor.com/blog/author/amustapha
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
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NB: There is risk of loss in trading, but it is possible to be a successful trader.
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