“My trading results are my responsibility and they are the consequences of my beliefs, my thoughts, and my actions.” - R.J. Hixson
Hello:
The Foreign Exchange market, being the largest market in existence, and dwarfing all other global stock, commodity and derivative markets combined, offers peerless trading opportunities for interested ones the world over. Moreover, its innate risk can only be curbed by truncating losses and giving profits some leeway. This is what really smart traders ought to do. One isn’t smart by sticking to losing trades. The more period speculators use creating impressions that they know the future, the more they’d be reluctant to close losing trades. This often leads to emotional commitment which is extremely dicey and of sticking to the decision to ride losing trades to the end. Chances merely amplify the uncertainties of tomorrow as the issue of increase or decrease of portfolios thus turns into elementary matter of saving one’s face, with pecuniary contemplation relegated to the background. As proven by the time and history, this eventually leads to cataclysmic and irreparable drawdowns.
Below is the summary of some of my trading activities this week.
AUDUSD
Primary Trend: Bearish
This pair has failed to gain any noteworthy bullish momentum since last week. It’s unlikely that there would be any sustained rise in price. I’d be looking for an opportunity to short this pair.
NZDUSD
Primary trend: Bullish
My long position is still open. The NZD has been rising slowly but steadily, being a very strong currency at the moment. It’s getting difficult for its counterparts to gain any strength against it. If the factors that contribute to the strength of the NZD continue, even a correction in the market would only lead to a stratospheric rise.
Order: Buy
Entry date: May 30, 2011
Entry price: 0.8156
Stop loss: 0.8156
Trailing stop: N/A
Take profit: 0.8758
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 100 pips
EURCAD
Primary trend: Bullish
This market has been rising steadily since last week, and this was expected to continue. But the bullish journey was stalled when the Euro was eventually weakened. My long order reached a breakeven.
Order: Buy
Entry date: June 3, 2011
Entry price: 1.4158
Stop loss: 1.4058
Trailing stop: 1.4158
Take profit: 1.4747
Exit date: June 9, 2011
Exit price: 1.4158
Status: Closed
Profit/loss: 0 pips (breakeven)
EURAUD
Primary trend: Bullish
The stronger Euro is also visible on this instrument – it may even be the beginning of a sustained bullish trend. If the Aussie continues its present lack of stamina, the bulls would only continue reigning. The bull market starts where the bear market ends.
EURNZD
Primary trend: Bearish
On this cross, there was a bullish correction in the midst of a downtrend, followed by some ranging movement earlier this week, before a sharp sell-off that occurred later this week. This shows that the strength of the Euro couldn’t withstand the strength of the NZD. Currently, the price is quoted around the SMA50, and below the SMA 200. The ADX 20 level is around 30. The -DI has just crossed the +DI, signaling a renewed bearish pressure.
Order: Sell
Entry date: June 6, 2011
Entry price: 1.7916
Stop loss: 1.7926
Trailing stop: 1.7721
Take profit: 1.7592
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 325 pips
AUDJPY
Primary trend: Bearish
Buyers have long been fighting a losing battle in this market. The bearish move has going slowly but surely. The trend is clearly bearish, and any upward correction would simply create a ‘sell’ signal. When you’re the first to know when this happens then you’ve the edge.
Order: Sell
Entry date: May 19, 2011
Entry price: 86.91
Stop loss: 87.95
Trailing stop: 86.91
Take profit: 80.95
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 148 pips
Conclusion: Trading the financial markets isn’t a bed of roses, neither is it picnic. It requires much time, effort, and dedication, as well as patience and realistic expectations.
If you can do this, your patience would be richly rewarded, and in time you’d see the results.
This update is ended with quotes from Ryan Schofield:
1. “You don’t need to know for certain what price will do next to make money from trading – leave predictions to the analysts and focus on keeping the probabilities in your favor.”
2. “Trading is a game of probabilities, with every trade decision, you’ve to ask yourself: ‘What are the probabilities of this trade reaching my profit targets over my stop loss?’ ”
3. “The less you get caught up in attempting to ‘hit home runs’ or pick the big winners, the more enjoyable and profitable trading becomes.”
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:
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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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