“Remember, it's better to have a small profit of a larger sum than a large profit of a smaller sum - in the latter case you're taking on more risk. As a rule, we don’t like risk.” – Marcus de Maria
Hello:
This is an update on some of the movements on the markets and what I’m doing about them, plus my losses and profits. The analyses are based on daily charts, looking at the Big Picture, though my entries are on a smaller timeframe. My preferred leverage is 1:100 and my position size is 0.01 lots for each $1000. My maximum drawdown in a week is 3% (worst case scenario). I use the Price Behavior rules for strategic decisions and customized indicators for tactical entries. I open primary positions without predetermined exit target in mind, riding the trend for as long as it continues. The value of patience will forever be emphasized. As long as I stick to my rules and keep my risk low, I’m immune to fear.
Whenever we’re trading we got to use the mental control tools that we’ve learned to interrupt the old contrary thinking pattern as it begins and remain focused on what matters most in the trade. What matters most at the moment of trading is to follow our plan and our rules and allow the market to prove us wrong. In our natural state, we have the ability to see the market just as it is. No thoughts come up to remind us of the past or attempt to predict the future.
AUDUSD
Primary trend: Bullish
The current bullish momentum is highly significant. However it may be unwise to go long at the movement, unless you were able to catch the trend earlier. I put a Sell Limit order which is now filled and currently negative. There’s a strong resistance at 0.9600.
Order: Sell Limit
Entry date: September 17, 2010
Entry price: 0.9500
Initial stop: 0.9650
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: -50 pips
Percentage growth: N/A
NZDUSD
Primary trend: Bullish
It looks like there’s still much room for the bulls on this pair. However, it’s still going to an area of strong resistance. I’m still expecting a good ‘sell off’’ around 0.7400. Otherwise the bullish trend may continue.
Order: Sell Limit
Entry date: September 10, 2010
Entry price: 0.7400
Initial stop: 0.7550
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Pending
Profit/loss: N/A
Percentage growth: N/A
EURCAD
Primary trend: Bullish
This cross is breaking one resistance after the other. You see, whenever a trend starts, we don’t know where it’ll end. Once one is able to identify a good turning point, the next thing is to enjoy a good ride. As a beginner, if some ‘sheer luck’ brings you some winners in a row, you shouldn’t be confident enough to ask your granny to sell her house so that the proceeds can be used to fund a live account. You need to be sure that you can survive a losing streak as well. Who knows if the losing streak would start after you’ve started trading your granny’s money?
Order: Buy Limit
Entry date: September 9, 2010
Entry price: 1.3100
Initial stop: 1.2950
Current stop: 1.3445
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 506 pips
Percentage growth: 5.0%
EURAUD
Primary trend: Bearish
Several bullish attempts have failed. The EUR is still a kind of weak against the AUD. The market hasn’t been able to turn to start a significant rally. None of my entry conditions have been met at the present. If they’re met, I’ll just put a pending order in place.
Order: Buy Limit
Entry date: September 9, 2010
Entry price: 1.3800
Initial stop: 1.3650
Current stop: 1.3871
Exit price: 1.3871
Exit date: September 17, 2010
Status: Closed
Profit/loss: 68 pips
Percentage growth: 0.68%
EURNZD
Primary trend: Bullish
This instrument is supposed to be in correlation with the EURNZD but the matter isn’t so this time around. The NZD is too weak to withstand the EUR’s strength. The bias has turned bullish, and this may just be the beginning. The current price is quoted above the SMA 20 and the –DMI has been kept below the +DMI while the ADX 20 line is journeying towards the 30 level. My pending order wasn’t reached before the bullish journey began. So ultimately it could be cancelled.
Order: Buy Limit
Entry date: September 13, 2010
Entry price: 0.7400
Initial stop: 0.7250
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Pending
Profit/loss: N/A
Percentage growth: N/A
AUDJPY
Primary trend: Bullish
In the present bullish momentum, there could be a temporary pullback or trend reversal. Resistance 81.00 has been broken, but another impediment to the bulls stands at 82.00 level. Whenever you get a trading signal from your setups, you simple need to enter your orders. There’s no need for you to fear anything or complain that you’re too old or too young or don’t know enough or you’ve a toothache. You just need to enter.
Order: Sell Limit
Entry date: September 15, 2010
Entry price: 81.00
Initial stop: 82.50
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: -23
Percentage growth: -0.2%
Conclusion: Of course, other strategies are being used by me and some of them have been closed with profits (these other strategies will be secretly enjoyed by the subscribers to my trading signals. One is being used by them and others will soon follow). If you’re a Forex trader, I congratulate you. You’ve made a very good trading choice. There are many advantages currency trading has over stocks. Besides, unlike stocks, currencies rarely go to zero. Although companies easily can go bankrupt, countries cannot. There will be times when a currency is devalued, but even in cases where there is a sharp slide, the currency's value never reaches zero. It's not impossible, but what it would take for this to happen is too scary to even consider.
I’m concluding this article with a quote from a famous sportsman:
Your questions and opinions are highly welcome.
Thank you.
With best regards,
Azeez Mustapha
Forex Signals Strategist, Funds Manager &Coach
Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
Nice trading tips are available at: www.ituglobalforex.com
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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