“Because the market is unique, it does not follow most accepted cultural myths… That is why intelligent and educated people can succeed at any other business but fail at trading because the usually effective life-model that works in the real world is not the same paradigm that creates price action.”– Dr. Woody Johnson
Hello:
It’s no longer news that most traders (approximately 90%) lose. But the most important thing is that you MUSTN’T be in that group. What can you do to avoid being in that group? The simple answer is hard work, the knowledge of how the markets functions, and bringing yourself into harmony with trading truths. It’s better to stick with the market principles that work instead of going from one trading system to another. Successful trading isn’t for those who find it difficult to exercise patience (those who prefer instant gratification). It’s like hoping to harvest oranges in the same week you plant orange seeds. Digging a 50-inch hole while searching for water is better than digging many 5-inch holes in many areas of land. A 50-inch hole has a better chance of reaching water than a 5-inch hole.
AUDUSD
Primary Trend: Bullish
The G20 meeting over the last weekend didn’t produce tradable gaps: perhaps owing to the
Order: Buy Limit
Entry date: February 17, 2011
Entry price: 1.0015.
Initial stop: 0.9915
Current stop: N/A
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 84
Percentage growth: 0.8%
NZDUSD
Primary trend: Bullish
The earthquake that hit
Order: Buy Limit
Entry date: February 17, 2011
Entry price: 0.7550
Initial stop: 0.7450
Current stop: N/A
Exit date: February 22, 2011
Exit price: 0.7450
Status: Closed
Profit/loss: -100
Percentage growth: -1%
EURCAD
Primary trend: Bullish
The market has succeeded in sustaining a bullish bias up till now. The price reached a peak of 1.3709 and retraced. If the present support holds, we may see a new rise in price, testing the previous resistance. If the 1.3700 level is broken, then the next price target may be 1.3800. However, there must be a continuous weakness in the CAD for this scenario to continue. I got a pending order on this market - trying to buy a pullback.
Order: Buy Limit
Entry date: February 25, 2011
Entry price: 1.3527
Initial stop: 1.3427
Current stop: N/A
Exit date: N/A
Exit price: N/A
Status: Pending
Profit/loss: N/A
Percentage growth: 0
EURAUD
Primary trend: Bullish
When the bad news from
Order: Buy
Entry date: February 16, 2011
Entry price: 1.3499
Initial stop: 1.3399
Current stop: 1.3581
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 176 pips
Percentage growth: 1.7%
EURNZD
Primary trend: Bullish
The NZD is currently too weak to withstand the strength of the EUR. There’s a probability that the present scenario would continue. The price is now far above the SMA 20. The ADX 20 level is showing a very strong trend – something that could cause a new but transitory pullback. +DI has been gallantly above its –DI counterpart for days. I’m waiting to buy a correction on the market.
Order: Sell
Entry date: February 2, 2011
Entry price: 1.7832
Initial stop: 1.7932
Current stop: 1.7725
Exit date: February 4, 2011
Exit price: 1.7725
Status: Closed
Profit/loss: 100 pips
Percentage growth: 1%
AUDJPY
Primary trend: Bullish
This week has been bearish for this market, simply because there’s some strength in the JPY. This is also evident in the movement of the GBPJPY and EURJPY. It seems that the market is hesitating along the lower Bollinger bands. If the JPY’s strength continues to hold, the southward correction may continue, meaning the beginning of a new trend. And the primary trend would eventually turn bearish. Whatever you do on the markets, you’ll immediately get the feedback you deserve.
Conclusion: Dan Zanger has achieved excellent trading results over the last 12 years. He turned $11,000 to over $42 million in 24 months (making roughly 29,000%). He’s now a world record holder. While his position sizing may be considered high (given his RRR over time), it’s worth noting that his trading approach has worked for him consistently for many years. The main point here’s that a trading approach that works doesn’t change with time or changing market conditions. Despite his knowledge and experience, Dan Zanger also has had to accept losses. Regardless of occasional losses, he moves ahead.
Remember, if you have an effective trading system, you’d continue to move ahead irrespective of losses. But very few people would be able to survive the markets using big trading volume like Mr. Dan. In other words, low risk remains the key for long-term survival.
This article is ended with more quotes from Dr. Woody Johnson:
1. “One of the most important tenets of trading is to follow you plan and engage in ‘rule-based’ executions. Rule-based trading is the cornerstone of getting the results that you want and experiencing profitable returns. Rules are also part of life… Now, if your behavior is based on solid, effective rules, then you are going to get more of the results that you want; but if your rules are weak and based on illogical or ineffective foundations, then your results would no doubt suffer.”
2. “You must trade with your best when you are in the markets; nothing else will provide you with consistent winning results (where winning is defined as planning your trades, trading your plan and following all of your rules religiously). Your mental game is critical. Trading is a 100% mental game. Your performance is not based on anything physical; it is all mental hence, mental and emotional tools are required.”
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:
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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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