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Friday, April 22, 2011

Weekly Trading Update (April 18 - 22, 2011)

“How much you can make in a day of trading depends on many variables: your starting capital, your trading systems, your position sizing strategies, your risk tolerance, your personal abilities, your commitment, your objectives, your planning, your discipline, etc.” - Dr. Van Tharp

Hello:

Despite financial crises and problems with pecuniary policies, the currency markets proffer even private traders abundant opportunities to participate in profiting from exchange-rate fluctuations. The financial freedom you seek is inherent in the currency markets. For instance, Grace Cheng is an investor and Forex trader who fulfilled her dream of traveling around the globe from the US, South America, Europe to Africa and Asia for a year, without missing a day of trading work, proving that in this day and age, one can achieve financial independence without being tied to an office chair. If you stay glued to your screen most of the time, then you’re not financially free. The less time you got at the screen, the more time you’d have to analyze your performance and the more time you’ll have to enjoy the freedom that trading can and does deliver.

Below is the summary of some my trading activities this week. My newly placed trades would be featured in the next weekly update.

AUDUSD

Primary Trend: Bullish

Since reaching parity against the Greenback, the Aussie has gone up by over 740 pips. The best bet still remains going long or buying a pullback. All the present fundamentals are in support of bulls. However, this can’t go on forever.

NZDUSD

Primary trend: Bullish

The temporary correction that occurred early this week stopped me out before resuming in my direction – albeit with some profit. Always consider the overall risk when I trade, including the risk of ruin.

Order: Buy

Entry date: April 5, 2011

Entry price: 0.7681

Stop loss: 0.7481

Current stop: 0.7865

Take profit: 0.8279

Exit date: April 18, 2011

Exit price: 0.7865

Status: Closed

Profit/loss: 180 pips

EURCAD

Primary trend: Bullish

In the present context of bullish bias, it’s difficult to specify whether buyers and seller are in subjugation. Both the EUR and CAD are strong but one would clearly prevail soon. Order: Buy

Entry date: April 5, 2011

Entry price: 1.3741

Stop loss: 1.3541

Current stop: 1.3741

Take profit: 1.4333

Exit date: April 18, 2011

Exit price: 1.3741

Status: Closed

Profit/loss: 0 pip (breakeven)

EURAUD

Primary trend: Bearish

The protracted threat to the former bullish bias has turned everything southbound. One can only anticipate the Euro to weaken the more in a foreseeable future. Therefore the present trend ought to continue for a while. When you want to trade, look for trends, not intra-day ups and downs as this is only noise.

EURNZD

Primary trend: Bullish

The strong Euro is still helpless against the stronger New Zealand dollar. The long-term trend remains bullish but this would possibly change if the current scenario continues. The price is below the SMA 20. The ADX 20 level is now over 40 and showing a strong trend. +DI has maintain a constant move below its –DI counterpart.

AUDJPY

Primary trend: Bullish

This market is a good instance of how one can get sliced up by a market that threatens to break down but doesn’t. There was over 300-pip reversal before the market turns seriously up. I broke even on this cross. The markets that are already strong would move more slowly in the near future (and vice versa for the markets that are already weak) and therefore should not be traded aggressively.

Order: Sell

Entry date: April 15, 2011

Entry price: 87.83

Stop loss: 89.83

Current stop: 87.83

Take profit: 81.83

Exit date: April 20, 2011

Exit price: 87.83

Status: Closed

Profit/loss: 0 pip (breakeven)

Conclusion: You’ll be on the path to consistent results when you consistently apply the same rules. Constant and effective rules and methods may help you in your life as a trader and in my opinion are the fundamental steps to be taken in becoming a successful trader. We all know that ‘patience is a virtue’ and trading it definitely can pay off for us.

I end this article with a quote from Joe Ross:

“We can't afford to allow the fear of failure to interfere with our trading success. We don't have to be perfect. Any professional trader will tell you that you're going to make mistakes from time to time. If you're totally immersed in avoiding them, you'll be so anxious and fearful that you'll make even more mistakes. Tell yourself that it's not practical to believe that you must be thoroughly competent. You don't have to be the greatest achiever. Realize that as a trader, you can't live up to a standard of perfection. If we strive to be perfect, it may actually lead us to the very failure we are trying to avoid.”

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:

www.fxinstructor.com/blog/author/amustapha

www.fxinstructor.com/blog

Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal

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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