“I believe trading is far more an art than a science.” – Joe Ross
Hello:
Do you know now what it means to be impatient while trading?.. More than a few of us know what it means to take 3 steps forward, 2 steps back, followed by 2 steps forward, 3 steps back… The same is true of traders who are looking for instant gratification. These traders think that using high risk for fast profits, with the ‘Golden Goose’ software in their possession, is safe. No farmer gets from his field the fast food we expect when we put money into a vending machine. Harvests don’t ‘spring’ quickly from the ground. Only with time, work, and patience do we get what we’re looking for in trading – and more. Just as farmers learn how dependent they’re on weather they can’t control, so we need to see that the profit we’re looking for in trading is more than ‘attitude of choice.’ Lasting trading results don’t come quickly. It’s far better to begin to go for small but consistent profits as if you were stockpiling very small pieces of precious metal where there is a scarcity of the precious metal.
Below is the summary of some of my trading activities this week.
AUDUSD
Primary Trend: Bearish
This pair and other pairs experienced powerful movements this week – moving alternatively up and down, and very fast. I sold short last Friday.
Order: Sell
Entry date: August 5, 2011
Entry price: 1.0486
Stop loss: 1.0590
Trailing stop: 1.0336
Take profit: 1.0190
Exit date: August 8, 2011
Exit price: 1.0190
Status: Closed
Profit/loss: 296 pips
NZDUSD
Primary trend: Bearish
The Kiwi gave in to pressure from the Greenback. The price plummeted and a good entry was found. You certainly need a lot of experience to do this.
Order: Sell
Entry date: August 5, 2011
Entry price: 0.8369
Stop loss: 0.8469
Trailing stop: 0.8232
Take profit: 0.8074
Exit date: August 9, 2011
Exit price: 0.8074
Status: Closed
Profit/loss: 295 pips
EURCAD
Primary trend: Bullish
I went long upon an early generation of a ‘buy’ signal. The trade was successful, plus the bullish bias still holds.
Order: Buy
Entry date: August 5, 2011
Entry price: 1.3826
Stop loss: 1.3706
Trailing stop: 1.3976
Take profit: 1.4106
Exit date: August 8, 2011
Exit price: 1.4106
Status: Closed
Profit/loss: 280 pips
EURAUD
Primary trend: Bullish
This cross went bullish, then retraced. The retracement may be bought again. A market is never too high to buy despite the overbought indicator, and mayn’t be too cheap to sell.
Order: Buy
Entry date: August 5, 2011
Entry price: 1.3458
Stop loss: 1.3347
Trailing stop: 1.3608
Take profit: 1.3747
Exit date: August 8, 2011
Exit price: 1.3747
Status: Closed
Profit/loss: 289 pips
EURNZD
Primary trend: Bearish
The last trade on this cross was a flop. The price is just being quoted above the SMAs 200 and 50. The ADX 20 is at the level 25, showing some slowdown in the trend. The -DI is above the +DI.
Order: Buy
Entry date: August 9, 2011
Entry price: 1.7436
Stop loss: 1.7308
Trailing stop: N/A
Take profit: 2.0408
Exit date: August 9, 2011
Exit price: 1.7308
Status: Closed
Profit/loss: -126 pips
AUDJPY
Primary trend: Bearish
Like all the instruments mentioned in this article, the trade on the AUDJPY has been closed. When a price falls, it happens much faster than is the case with a price rise by the same amount.
Order: Sell
Entry date: August 1, 2011
Entry price: 84.65
Stop loss: 85.68
Trailing stop: 83.01
Take profit: 81.68
Exit date: August 5, 2011
Exit price: 83.01
Status: Closed
Profit/loss: 164 pips
Conclusion: One of the most frequent questions being asked, however, revolves around, “What direction do you think the AUDUSD would go from here?” My constant answer to that question is that traders don’t actually need to know where a direction would be before they can make money. The key to achieving this goal was mentioned in my past articles and would be explained more in my coming articles.
I’d like to conclude this article with more quotes from Joe Ross:
1. “When it comes to enduring success as a trader, the odds are against you. Every year, thousands of would-be traders try to make it, but few realize their goals. And even of those who make it, for many, success is short lived. Achieving and maintaining success is largely a matter of attitude. If you approach trading with the right mindset, you'll increase your odds of success.”
2. “Many people limit themselves psychologically, but if you are willing to redefine and stretch your limits, and start thinking of yourself as a winner, you'll get there and stay there.”
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
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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