“…What got you in and got you out for a small loss may
actually get you back in for a bigger win a little later.” – Sam
Evans
Currency markets have times of
significant bearish plunges and bullish shoots. But no matter what happens, I’d
keep on trading for annual profits. To win a trading game is good. To play the
markets is better. But to love trading is the best of all. 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: USDCHF
Order: Buy
Entry date: November 2, 2012
Entry price: 0.9406
Stop loss: 0.9206
Take profit: 1.0006
Status: Open
Profit/loss: 78 pips
2.
Instrument: GBPUSD
Order: Sell
Entry date: November 5, 2012
Entry price: 1.5968
Stop loss: 1.6168
Take profit: 1.5368
Status: Open
Profit/loss: 69 pips
3.
Instrument: EURUSD
Order: Sell
Entry date: November 5, 2012
Entry price: 1.2788
Stop loss: 1.2988
Take profit: 1.2288
Status: Open
Profit/loss: 73 pips
4.
Instrument: USDCAD
Order: Buy
Entry date: November 5, 2012
Entry price: 0.9970
Stop loss: 0.9770
Take profit: 1.0570
Status: Open
Profit/loss: 45 pips
5.
Instrument: GBPAUD
Order: Sell
Entry date: November 5, 2012
Entry price: 1.5406
Stop loss: 1.5606
Take profit: 1.4806
Status: Open
Profit/loss: 96 pips
6.
Instrument: EURJPY
Order: Sell
Entry date: November 5, 2012
Entry price: 102.63
Stop loss: 104.63
Take profit: 98.93
Status: Open
Profit/loss: 155 pips
7. Instrument:
AUDCAD
Order: Buy
Entry date: November 5, 2012
Entry price: 1.0339
Stop loss: 1.0139
Take profit: 1.0939
Status: Open
Profit/loss: 68 pips
8.
Instrument: EURAUD
Order: Sell
Entry date: November 5, 2012
Entry price: 1.2337
Stop loss: 1.2537
Take profit: 1.1737
Status: Open
Profit/loss: 90 pips
9.
Instrument: AUDCHF
Order: Buy
Entry date: November 5, 2012
Entry price: 0.9782
Stop loss: 0.9582
Take profit: 1.0382
Status: Open
Profit/loss: 67 pips
10.
Instrument: USDJPY
Order: Buy
Entry date: November 5, 2012
Entry price: 80.28
Stop loss: 78.28
Take profit: 86.28
Status: Open
Profit/loss: -80 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.
Conclusion: Many advantages that are present in Forex but absent in
other types of the financial markets have made Forex endearing to people as a
field of activity. Follow your
trading criteria – but only winning criteria. There are winning criteria and
losing criteria in trading. The criteria are yours. If they’re useful, stick to
them. If not, abandon them and find winning trading principles.
This
article is concluded with quotes from Jim Wyckoff:
- “I have
been in this business nearly 20 years. I have read stacks of trading books
and have voraciously studied markets and market behavior. I have worked
right on the trading floors of all the major futures exchanges. As a
journalist, I have conducted countless interviews with the very best
traders and analysts in the world. But I still cannot specifically predict
what a given market will do in the future.”
- “It's
very important to realize the fact that neither I nor anyone else--not
even the most powerful computer trading systems--can predict what the
markets will do in the future. Markets will never be tamed. I've said many
times that my profession is not a business of market predictions, but one
of exploring market probabilities, based upon fundamental and technical
analysis--and human behavior. By exploring and understanding market
probabilities, and human nature, one can achieve trading success.”
Your questions and opinions are highly welcome.
Thank you.
With best regards,
Azeez Mustapha
Forex Signals Strategist, Funds
Manager &Coach
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: Trading has become a
calling!
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