“You will benefit greatly from putting in effort toward (trading) professionalism.” – Ken Long (brackets mine)
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.
We’re dealing with active trade movement here; not passive trade movement which is a situation in which an instrument which demonstrates real move isn’t traded by the trader, and as a result, has no effect on the trader’s account. Only when an account contains open positions is the trade capable of realizing profits. While doing this, the golden rule mustn’t be forgotten – something that traders know very well but tend to forget once they’re in the markets.
AUDUSD
Primary trend: Bullish
The present AUDUSD situation is still an upward movement, although some temporary pullbacks may make us feel that the bearish reversal is in place. It seems that the northward push is getting very weak, but my technical conditions for a bear market haven’t been reached. I’d like to sell short when there’s a confirmed trend reversal. This should give us a nice trading opportunity.
NZDUSD
Primary trend: Bullish
We’re now in the midst of a corrective movement; and this shouldn’t be taken as a shorting signal. There are additional factors to be considered before the present bullish scenario is truly violated. If the present bearish correction continues seriously, then a ‘sell’ signal would be generated. Before then, I’ll not be trading this pair. A trade can be a mess if caught in the wrong direction. Is money missed not better than money lost?
EURCAD
Primary trend: Bullish
The northward journey goes on with this cross indefinitely. The more the CAD weakens, the more the trend continues. I presume the present scenario may continue until the end of this year.
Order: Buy Limit
Entry date: September 9, 2010
Entry price: 1.3100
Initial stop: 1.2950
Current stop: 1.3819
Exit price: N/A
Exit date: N/A
Status: Open
Profit/loss: 1198 pips
Percentage growth: 11.9%
EURAUD
Primary trend: Bullish
If the price doesn’t retrace to the 1.4000 that I’ve predetermined, I won’t enter a new position on this instrument. And if the bullish scenario continues, then all is well. The truth is that the AUD would be ultimately weakened and the bullish scenario would become stronger than ever. The bullish journey would continue until there’s a short selling opportunity. It’ll probably take a very long time.
Order: Buy Limit
Entry date: October 1, 2010
Entry price: 1.4000
Initial stop: 1.3850
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Pending
Profit/loss: N/A
Percentage growth: N/A
EURNZD
Primary trend: Bullish
The outlook on the EURNZD is still bullish. The price touched the SMA 20 which tends to act as a support in an uptrend, only to move up seriously. while the ADX 20 level still calls attention to a strong uptrend, suggesting there’s still more leeway for the bulls to run. +DI is above its –DI counterpart. I don’t want to go long here (it’s an extended bullish run). Even if you’re a doubting Thomas; you could wait until a brand new signal in the opposite direction is confirmed, and you’ll reap some pips.
AUDJPY
Primary trend: Bearish
This cross is fundamentally moving sideways in a slightly bearish scene. When a shorting signal was generated, the price had gone too far for my liking. I only want to sell a rally in this kind of market. If you’d entered short on Tuesday, you could’ve been stopped out by now. I expect the price to move up to my entry point before my trade is filled: otherwise it’ll be eventually cancelled. If one signal is missed, another one would soon be forthcoming. Patience matters seriously in a long-term system. Impatient traders can enter bad trades when the markets are moving sideways, causing further losses. Yes shirts and socks can be lost, including a fiancé(e). Why must one sell his house to pay up debt, just because of foolish trading decisions? Please try your best to retain your mate. I’m doing my best to retain my mate. I know the pains of getting separated from a loved one. Try to focus on important factors in your trading – enjoying yourself as much as possible. Right now, I’m enjoying a 50 Cent rap music track. If you make serious money from trading, wouldn’t you smile at the verse below?
“My flow, my show brought me the doe
That bought me all my fancy things
My crib, my cars, my pools, my jewels
Look nigga I got K-Mart and I ain't change…” Enjoy your trading.
Order: Sell Limit
Entry date: October 19, 2010
Entry price: 80.50
Initial stop: 82.00
Current stop: N/A
Exit price: N/A
Exit date: N/A
Status: Pending
Profit/loss: N/A
Percentage growth: 0%
Conclusion: There are different types of traders and trading styles. Some trade with relatively small amount of money, others bet everything on expensive, highly volatile instruments, some hold certain positions for months, years even, while some jump in and out of the markets in a matter of seconds. And if there’s one indelible truth we need to know, it’s that an averagely intelligent person can succeed at trading, and grow their portfolio substantially in a short amount of time. Regular people – trumpeters, carpenters, or contractors – have all achieved success on the markets. Some have to learn the hard way, others take a smoother part. Which one is applicable to you at this stage of your trading life? Just know that, like in any good battle, we got to have a trading plan.
A quote from Detlef Wormstall concludes this article. It’s about the kind of attitude needed towards trend trading:
“… Participation in the trend pattern should be extended as long as possible.”
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
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.Get my
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