“The markets will always be there tomorrow so there’s no use crying over a missed trade or chasing a trade because you think it’ll never happen again. Just be patient.” – John Carter
Hello:
John Carter made his first trade when he was still a teenager and he made money from that trade. Was that experience a blessing or a curse? Many years later, he admitted that the first trade he made in his life really sealed the deal for him. He realized that trading could be for a living. His first trading position doubled in 3 days, netting him $1000. He’d just spent the entire summer working a crap job to make the same amount of money. At that point he knew he wanted to trade. Oddly enough he never had a desire to be a broker or go to the Wall Street route and run a fund. It was clear from the beginning that trading was a path to independence. It’s a job he could do at his own pace, without a boss, and he could do it from anywhere and take breaks anytime he wanted. That’s what really appealed to him. Of course, having such a great, easy winner was both a blessing and a curse. The blessing part was obvious – it got him excited about trading. The curse was that it took him a while to figure out it was not always going to be that easy.
Below is the summary of some of my trading activities this week.
AUDUSD
Primary Trend: Bearish
This market has been ranging for several days, making it difficult for some traders to make sustained profit. The bias remains in favor of the bears, and it may be wise to look for a shorting price entry. Some strength is anticipated in the USD.
NZDUSD
Primary trend: Bearish
This is also a flat market, just like its AUDUSD counterpart. A breakout is anticipated this week or next week. Chart patterns and indicators are used to aid market technicians in determining which price phase is occurring, but the eventual breakout in the next direction is the final judge.
EURCAD
Primary trend: Bullish
In spite of the consolidation taking place in this market, it looks dangerous to enter short right now. But it’s not a guarantee of any victory for the bulls. This is a kind of market situation that provides a great opportunity for scalpers - not trend followers - using pairs and crosses with low spreads.
EURAUD
Primary trend: Bullish
For this cross, 1.3800 and 1.8700 are important levels to watch. The price seems to be vacillating between these levels. They seem to be acting like big supply and demand zone now. If the price should break any of this level violently, the market may enter a trending mode. Prices fall in search of new buyers. This is when pullback buyers can join the new wave of uptrend.
EURNZD
Primary trend: Bullish
This is another instance of a ranging market where buyers and seller may be stopped out easily. The price is ranging around the SMA 50, which is above the SMA 200. The ADX 20 is below level 15, emphasizing a quite, trendless market. -DI is precariously situated above +DI, but this may be rendered invalid if the price turns and resumes its upward journey.
AUDJPY
Primary trend: Bearish
From a low of 78.85, the price pulled back by more than 200 pips. Could this be the beginning of a slow, but steady bullish move? Or is it a correction? Time will tell. For a theory about the working of the market to survive over time there must be an element of truth in its underlying principles.
Conclusion: You shouldn’t be in the markets when you’re in doubt. You don’t need to be trading if you entry criteria aren’t met. Remember that standing aside is a position. If you miss an entry price, relax, another opportunity will present itself.
I’d like to conclude this article with another quote from John Carter:
“One thing I’ve learned about trading over the years is that too much information is a bad thing. Not only can it cause analysis paralysis, but it presumes that a person can figure out with 100% certainty what the markets are going to do next, which is impossible. During the day I don’t watch any financial news on TV or anything. All they do is tell you what has happened, not what’s going to happen. I just watch the charts and try to keep it simple.”
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
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