“I hate to see all these aspiring forex traders losing their money. Why do they have to make everything so complicated when, in fact, it’s not at all hard to win?”- Joe Ross
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.
Another Ed Seykota? Certainly not! Just that I like to follow the rules of the masters when doing swing cum position trading. There’ll be winning months and losing months, but a good trader should go ahead despite this. Impatient traders should thus avoid strategies that show results only after months (there are strategies that show results in weeks and swing trading rules don’t apply to them).
AUDUSD
Primary trend: Bullish
The strong resistance at 0.9600 has been broken and the bullish bias is still valid. There’s no end in sight to the bullish journey. There’s a possibility that the USD might come to parity against the AUD – but that’s not a certainty. Eventually this pair will fall very hard. My short trade on this pair was a flop.
Order: Sell Limit
Entry date: September 17, 2010
Entry price: 0.9500
Initial stop: 0.9650
Current stop: N/A
Exit price: 0.9650
Exit date: September 28, 2010
Status: Closed
Profit/loss: -150 pips
Percentage growth: -1.5%
NZDUSD
Primary trend: Bullish
This slow pair is experiencing slow but steady bullish run. I was able to break even on a temporary correction before the bullish northward continued. Eventually the bears will gain upper hands. But who knows when?
Order: Sell Limit
Entry date: September 22, 2010
Entry price: 0.7400
Initial stop: 0.7550
Current stop: N/A
Exit price: 0.7400
Exit date: September 22, 2010
Status: Closed
Profit/loss: 0 pips (breakeven)
Percentage growth: 0%
EURCAD
Primary trend: Bullish
I was fortunate enough to get into this trade at the beginning of the extended rally on this cross. If you were able to start this journey with me, you needn’t think of handing in a letter of resignation to your boss (just as you needn’t think of quitting Forex when you suffer one loss).
Order: Buy Limit
Entry date: September 9, 2010
Entry price: 1.3100
Initial stop: 1.2950
Current stop: 1.3587
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 878 pips
Percentage growth: 8.7%
EURAUD
Primary trend: Bullish
The trend on this cross has finally turned bullish. The AUD is no longer able to withstand the EUR. I think this is a beginning of an upward trend, since any weakness in the Aussie would only fuel the bullish momentum. There’s no open trade now. My next possible trade is either to buy on pullback or sell a serious rally. But the former course of action is more probable.
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
The Price is still quoted above the SMA 20 while the +DI is still easily resting in the region above the –DI, plus the ADX 20 is yet to reach level 30, which signifies that the upward trend may still continue. However resistance after resistance must be broken for this to be done. If not, there’ll be a bearish breakout. A previous Buy Limit order was cancelled, but a new order is now pending.
Order: Sell Limit
Entry date: September 28, 2010
Entry price: 1.8500
Initial stop: 1.8650
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
We’re now in the era of the bulls. But in the context of the present uptrend, a bearish dive is likely. If my present short trade fails, then the bullish journey must continue indefinitely. A signal may give you either a win or a loss; but shouldn’t cause any significant drawdown, not to mention a margin call. A margin call is reserved for gamblers only, and if your girlfriend abandoned you because you received a margin call, then you need to learn your lessons both from the markets which move without partiality and from relationships which work only if you have money. Life goes on!
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: -6 pips
Percentage growth: -0.06%
Conclusion: I’m concluding with another thought-provoking quote from Joe Ross:
“After a trade is executed, what happens next is anyone's guess, and this state of uncertainty can cause stress. The best way to gain control is by organizing your perceptions and activities. If you trade with a detailed trading plan, for example, it helps you in imposing structure onto an unstructured reality. You can reduce some of the feelings of uncertainty by clearly defining a target profit objective as well as entrance and exit strategies. The more structure you impose and follow, the less uncertain and unorganized you'll feel. You will know what to do and when to do it. Your trading plan will be easy to follow, and you will be more in control.”
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
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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