“You need to remind yourself, repeatedly, that trading can be learned, and that you don't need to be a "natural-born trader" to succeed in this business. Don't expect to trade skillfully immediately. But do study your wins and losses to understand what you are doing well and where you need to improve.” – Joe Ross
Hello:
By making use of simulation mode, a trader who uses backtesting carries out performance of a trading system on past market data; something market speculators use to discover good trading ideas and get rid of ineffectual ideas. The reason for this is because market speculators conclude that if a trading idea is effective on the past market data, there are probabilities that it’d work in future. You mustn’t forget that backtesting is just an experiment which isn’t an assurance of tomorrow’s survival. It’s not possible to duplicate the trading conditions seen in historical data exactly, and simulation programs use hypothesis to generate predictive signals – eventually showing the difference between good and faulty backtesting. The less fantasy traders entertain, and the more honest they’re with their backtesting results – the more proficient trading ideas would be.
Below is the summary of some of my trading activities this week.
AUDUSD
Primary Trend: Bullish
Owing to the bullish continuation experienced on this pair this week, the trend has turned bullish. This may present good chances for speculators to buy a pullback – something I’m planning to do myself. This bias could be overturned only with sustained strength in the USD.
NZDUSD
Primary trend: Bullish
My long trade on this pair is still in a positive territory. I’d raise the stop to breakeven once the profit reaches around 70 pips; unless the market turns. When a market turns, traders generally wonder how significant it is.
Order: Buy
Entry date: June 30, 2011
Entry price: 0.8265
Stop loss: 0.8157
Trailing stop: N/A
Take profit: 0.8857
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 63 pips
EURCAD
Primary trend: Bearish
The market is moving down slowly but steadily. If the support at 1.3700 is broken, the bearish move may be carried on with renewed steam, especially now that it seems the days of the strength of the EUR are numbered. I’m looking for a way to go short.
EURAUD
Primary trend: Bullish
Given the recent lease of strength in the Aussie, it’s no surprise that the cross is in a southbound mode. The major trend is still bullish, but the bulls are only fighting a losing battle. Seasoned market speculators sometimes sell into market strength – anticipating weakness.
EURNZD
Primary trend: Bearish
Sellers are dominating here right now. The price is quoted below the SMA50 and SMA 200. The ADX 20 level is pointing towards 30, suggesting that the current price movement may only become more serious. The -DI is also above the +DI. . I’ve a short trade on the cross.
Order: Buy
Entry date: June 30, 2011
Entry price: 1.7531
Stop loss: 1.7649
Trailing stop: 1.7381
Take profit: 1.6949
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 285 pips
AUDJPY
Primary trend: Bullish
My plan is to go long any moment from now; at a reasonable price. This seems to be the beginning of a new bullish phase. The price has moved up from a temporary consolidation phase. While the ascension of the price suggested that the market was poised to continue upwards, there was of course, no guarantee.
Conclusion: Some people deplore trading as a bad way of life. You can help to prove them liars! How? By remaining committed to your trading goals, by using positive expectancy systems, and demonstrating that trading portfolios can survive the unpredictability of the markets thru good trading safety measures. As traders, there’s nothing more precious that we could do in the markets than to embrace measures that ensure the safety of our portfolios.
The article is ended with the quotes below:
1. “…What separates those who excel from those who only wish they could is a willingness to turn failure into feedback, losses into lessons and focus their attention on doing only what it takes to get the consistent results that they want.” – Dr. Woody Johnson
2. “Believe in yourself and all that you are. Know that there is something inside you that is greater than any obstacle.” – Christian D. Larson
3. “After all - if you never actually pull the trigger, you’re never going to profit.” – Forex Round Up
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
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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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