“The mindset that you brought into trading is not the mindset
that will bring success in trading.” - Rande Howell
There
are numerous pairs and crosses on the currency markets that have gained or lost
tens or hundreds of percentage over the calculable period of time. These gains
and losses were caused by positive and negative fundaments events. Increase and
decrease in the values of those currencies were results of significant gains and
drops in the respective countries’ economies.
The crosses analyzed aren’t the only instruments traded with the type of
analysis used. Below you’d find some pairs and crosses on which I opened
positions on a monthly basis. Personally, this is what I do, not what’s
recommended that others should do. Below are just 10 of my open trades. The
maximum duration for each trade is one month, and we should note that the
orders have been running before this article was written.
1.
Instrument: EURUSD
Order: Buy
Entry date: September 3, 2012
Entry price: 1.2565
Stop loss: 1.2365
Take profit: 1.3163
Status: Open
Profit/loss: 250 pips
2.
Instrument: USDJPY
Order: Sell
Entry date: September 3, 2012
Entry price: 78.17
Stop loss: 80.17
Take profit: 72.17
Status: Open
Profit/loss: -8 pips
3.
Instrument: AUDNZD
Order: Sell
Entry date: September 3 , 2012
Entry price: 1.2815
Stop loss: 1.3043
Take profit: 1.2243
Status: Open
Profit/loss: 14 pips
4.
Instrument: AUDJPY
Order: Sell
Entry date: September 3, 2012
Entry price: 80.26
Stop loss: 82.31
Take profit: 74.31
Status: Open
Profit/loss: -100 pips
5.
Instrument: AUDCHF
Order: Sell
Entry date: September 3, 2012
Entry price: 0.9784
Stop loss: 0.9998
Take profit: 0.9198
Status: Open
Profit/loss: -29 pips
6.
Instrument: NZDCHF
Order: Sell
Entry date: September 3 , 2012
Entry price: 0.7623
Stop loss: 0.7843
Take profit: 0.7680
Status: Open
Profit/loss: -57 pips
7.
Instrument: AUDCAD
Order: Sell
Entry date: September 3, 2012
Entry price: 1.0097
Stop loss: 1.0307
Take profit: 0.9507
Status: Open
Profit/loss: -72 pips
8.
Instrument: USDCHF
Order: Sell
Entry date: September 3, 2012
Entry price: 0.9557
Stop loss: 0.9557 (breakeven stop)
Take profit: 0.8960
Status: Open
Profit/loss: 112 pips
9.
Instrument: USDCAD
Order: Sell
Entry date: September 3, 2012
Entry price: 0.9859
Stop loss: 1.9859
Take profit: 0.9263
Status: Open
Profit/loss: 70 pips
10.
Instrument: NZDUSD
Order: Sell
Entry date: September 3, 2012
Entry price: 0.7985
Stop loss: 0.8188
Take profit: 0.7388
Status: Open
Profit/loss: -140 pips
The position sizing is 0.01 lots
for each $2000 (thus making it 0.05 lots for each $10000). When an order goes
positive by 70 pips, I move the stop to breakeven. From 200-pip profit upwards,
I use 50% trailing stop. Many market speculators use only the fundamentals to
buy or sell in the markets. They don’t enter in an uptrend and they abhor
truncating their losses. Even less percentage of market speculators would be
courageous enough to trade a pair/cross when it’s already gotten overextended
(they’d even prefer to smooth their positions at those phases).
Conclusion: As market speculators, we need to close many losses
sometimes as a result of the tendency to overtrade and open too many positions.
It’s better to go for ultimate profits like those big financial institutions
do, instead of determining what to gain on daily or weekly basis.
This
article is concluded with the quote below:
“Trading is craft and knowledge put into practice, and
psychology is deeply involved in the sense-making that goes along with that.
The journey toward mastery is a psychological one.” - Ken Long
Your questions and opinions are highly welcome.
Thank you.
With best regards,
Azeez Mustapha
Open an account here: eng.fxclearing.ca/ib/915
If you want to receive permanently free winning Forex
trading signals, please send me an email titled: “A Request for Free Trading
Signals.”
Send the request to: saazalmu@yahoo.com
Yahoo! Messenger ID: saazalmu
NB: There is risk of loss in
trading, but it is possible to be a successful trader.
No comments:
Post a Comment