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USDCHF Forecast
The USDCHF continued its bullish correction on Friday after another strong breakout above 0.7650 and hit 0.7907 earlier today in Asian session, made a huge gap of more than 100 pips from Friday’s closing price. The current strong bullish intraday pullback is a part of the bullish correction/reversal phase since the appearance of the hammer formation as you can see on my h4 chart below. The bias is bullish in nearest term testing 0.8000 region.  The gap we saw today has a chance to be filled, making Friday’s closing price at 0.7779 as the nearest support level.

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USDCHF Forecast
The USDCHF had a significant bearish momentum yesterday, fell about 500 pips and hit a new record low at 0.7081 but closed higher at 0.7229 and hit 0.7250 earlier today in Asian session. The bias remains bearish in nearest term testing 0.7000 psychological level. As you can see on my h4 chart below, there is a candle after hit the new record low, which looks like a hammer formation. I am not sure about this because it seems to me that the body is a little bit too big, but any bullish correction/reversal after a strong movement which hit a new historical low is acceptable. However, any bullish correction at this phase is normal and until I see a reversal sign, my technical bias remains strongly to the downside. Immediate resistance is seen around 0.7320. A clear break above that area could lead price to neutral zone in nearest term testing 0.7400/80 area but only a movement back above 0.7650 could potentially produce a bullish reversal scenario.

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“Sometimes the return of your money is more important than the return on your money.” – An old British banker

Hello:

It’s necessary that I give a monthly report of the results from the strategies I use for signals generation and trading. The trading results from my weekly trading updates aren’t discussed here, since those who follow my articles can see for themselves when I place or close trades based on the weekly analyses. The results on live and demo accounts are similar. Only position sizes are different – in proportion to each account balance.

The USDCAD Hedging strategy has been optimized to give more frequent and profitable signals. No stop loss has been hit since the inception of this trading idea on the pair. Because the USDCAD is caught in equilibrium zones most of the time, some simulation was carried out to determine whether the profitability of this strategy could be improved by reducing the fixed target per trade by 35 pips. This ensures constant survival in the market in which both buyers and sellers are often stopped out.  Nonetheless this kind of reduction would make less sense in a strongly trending market. A future article from me will explain the details of this optimization. In the month of June, our equity grew by an additional 9.5% (closed profits). The total trading time is a maximum of 15 minutes per week. One of the big mistakes in trading is to think you’ve always got to be doing something.

The Gap Trading strategy suffered some losses in the first half of June, leading to a roll-down of close to 4% on the accumulated profit. However before the end of the month, the losses were recovered and we’ve moved ahead by another 2.2% (additional 440 pips at minimum). Part of your profit would sometimes be given away: the key is to give away as little as possible so that recovery would be very much easier. Now, based on past experiences, it’s possible to forecast whether a gap would be filled or not after it occurs – with stunning accuracy. Gaps in the currency markets are usually followed by powerful price movements in the week they occur. Gap trading is a highly lucrative trading strategy – provided you know how to interpret the price actions correctly. A future article would be devoted to this advanced gap trading method.

Ralph Vince, author of 3 books on money management, allowed 50 PhDs who knew nothing about money management or statistics to play a game with 60% accuracy (which is certainly much better than any game you’ll ever play in Las Vegas) for 100 trials.   They weren’t given any incentive for winning – which can cause stupid behavior. They were merely instructed to make as much money as possible playing the game. Guess how many of them made money? Only 2 of them!  And these results aren’t unique. The markets can remain irrational longer than most traders can remain solvent. That’s why majority of traders would continue to suffer in the financial markets unless they embrace safe money management.

Why is it important that we understand money management? Because the main reason people think that trading is a dead-end activity is that they are unaware of – or choose to ignore – the purpose and power of this principle. Make money and risk management the focus of your trading activity. That’s what will make you a successful trader.

Would You Like to Trade Like Me? I look forward to helping you to learn and grow your skills as you trade this huge, but extremely volatile, Forex market. During these turbulent times, I will be at your service through the cutting-edge articles from me and giving you access to some trading accounts that enable you to see how I trade, apply the risk control measures I preach, manage open positions (so that you can do so accordingly), and to help you make good trading choices. A helpful gift is also coming the way of my paid subscribers on today. This gift could be yours too. And, if needed for special help in trading, I am available via e-mail. I look forward to your starting your subscription. You may join me at: http://www.fxinstructor.com/en/analytics/ituglobal

Lastly, the team at Fxinstructor.com has been making efforts to help traders out there realize their dreams of profitable market experience. Please let them take you by hand and lead you to trading mastery.

NB: Please watch out for my coming articles with these titles: ‘Resist the Lure of High Risk – Part 3,’ ‘Carrying Out Stealth Raids in Weak and Strong Markets,’ ‘Worst-case Scenarios – Facts Are Sacred,’ ‘Effective Swing Trading in Forex,’ ‘Advanced Gap Trading – Trading with Insane Accuracy,’ ‘3 Recent Gap Trades,’ ‘Trading for a Livelihood – One of the Best Jobs in the World,’ ‘If I Were a Trading Neophyte…,’ ‘Developing the Right Attitude towards Losses – Part 3,’ ‘The True Holy Grail – The Long Sought for,’ ‘Achieve Success through Sensible Risk-to-reward Ratio (An Interview with a Trading Enthusiast),’ ‘ Clarifying Some Issues – Part 5,’ ‘Optimization of the USDCAD Hedging Strategy – Bringing the USDCAD to Subjection,’ ‘A CHF Breakout Strategy,’ ‘Overview of My Signals Strategies,’ ‘Is It Realistic to Give Guarantees in Trading?’ ‘The Proper Way of Using the Bollinger Bands – Learn the Truth from the Horse’s Mouth,’ ‘Monthly Trading Report (July 2011),’ etc.

I end this article with a quote from Joe Ross:

“Traders don’t seem willing to admit that once they are filled, the situation becomes 100% managerial. Most traders concentrate on finding the perfect entry signal. But you can teach a chicken to place a trade in the market based on an entry signal. What you can’t teach the chicken is how to manage the trade once the market provides a fill.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

Yahoo! Messenger ID: saazalmu

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

NB: There is risk of loss in trading, but it is possible to be a successful trader.

 

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“You need to remind yourself, repeatedly, that trading can be learned, and that you don’t need to be a “natural-born trader” to succeed in this business. Don’t expect to trade skillfully immediately. But do study your wins and losses to understand what you are doing well and where you need to improve.” – Joe Ross

Hello:

By making use of simulation mode, a trader who uses backtesting carries out performance of a trading system on past market data; something market speculators use to discover good trading ideas and get rid of ineffectual ideas. The reason for this is because market speculators conclude that if a trading idea is effective on the past market data, there are probabilities that it’d work in future. You mustn’t forget that backtesting is just an experiment which isn’t an assurance of tomorrow’s survival. It’s not possible to duplicate the trading conditions seen in historical data exactly, and simulation programs use hypothesis to generate predictive signals – eventually showing the difference between good and faulty backtesting. The less fantasy traders entertain, and the more honest they’re with their backtesting results – the more proficient trading ideas would be.

Below is the summary of some of my trading activities this week.

AUDUSD

Primary Trend: Bullish

Owing to the bullish continuation experienced on this pair this week, the trend has turned bullish. This may present good chances for speculators to buy a pullback – something I’m planning to do myself. This bias could be overturned only with sustained strength in the USD.

NZDUSD

Primary trend: Bullish

My long trade on this pair is still in a positive territory. I’d raise the stop to breakeven once the profit reaches around 70 pips; unless the market turns. When a market turns, traders generally wonder how significant it is.

Order: Buy

Entry date: June 30, 2011

Entry price: 0.8265

Stop loss: 0.8157

Trailing stop: N/A

Take profit: 0.8857

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 63 pips

EURCAD

Primary trend: Bearish

The market is moving down slowly but steadily. If the support at 1.3700 is broken, the bearish move may be carried on with renewed steam, especially now that it seems the days of the strength of the EUR are numbered. I’m looking for a way to go short.

EURAUD

Primary trend: Bullish

Given the recent lease of strength in the Aussie, it’s no surprise that the cross is in a southbound mode. The major trend is still bullish, but the bulls are only fighting a losing battle. Seasoned market speculators sometimes sell into market strength – anticipating weakness.

EURNZD

Primary trend: Bearish

Sellers are dominating here right now. The price is quoted below the SMA50 and SMA 200. The ADX 20 level is pointing towards 30, suggesting that the current price movement may only become more serious. The -DI is also above the +DI. . I’ve a short trade on the cross.

Order: Sell

Entry date: June 30, 2011

Entry price: 1.7531

Stop loss: 1.7649

Trailing stop: 1.7381

Take profit: 1.6949

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 285 pips

AUDJPY

Primary trend: Bullish

My plan is to go long any moment from now; at a reasonable price. This seems to be the beginning of a new bullish phase. The price has moved up from a temporary consolidation phase. While the ascension of the price suggested that the market was poised to continue upwards, there was of course, no guarantee.

Conclusion: Some people deplore trading as a bad way of life. You can help to prove them liars! How? By remaining committed to your trading goals, by using positive expectancy systems, and demonstrating that trading portfolios can survive the unpredictability of the markets thru good trading safety measures. As traders, there’s nothing more precious that we could do in the markets than to embrace measures that ensure the safety of our portfolios.

The article is ended with the quotes below:

1. “…What separates those who excel from those who only wish they could is a willingness to turn failure into feedback, losses into lessons and focus their attention on doing only what it takes to get the consistent results that they want.” – Dr. Woody Johnson

2. “Believe in yourself and all that you are. Know that there is something inside you that is greater than any obstacle.” – Christian D. Larson

3. “After all – if you never actually pull the trigger, you’re never going to profit.” – Forex Round Up

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

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.

About Me
My Articles

“… There’s a way to know exactly when to exit and how much you’re willing to accept. More importantly, the [market] can gap as much as it wants, but you’d lose only the predetermined amount you decided upon when you entered the position.”- Jim Augustine (square brackets mine)

Hello:

It’s been decided that I’d report my trading results on monthly basis, especially the trading results from the strategies I use to give my trading signals. These trading strategies are used on the accounts made accessible to my clients who see how I open trades and manage them, and thus trade accordingly. The trading results from my weekly trading update wouldn’t be included because I’ve already made references to them in my articles.

The USDCAD Hedging strategy account grew by 1.6% last month. You know how much this would be if you were managing millions of dollars. This strategy, which is non-directional and suitable for passive investors, ensures that profits are made regardless of market directions. The USDCAD is a slow pair which mayn’t experience upwards or downwards moves of up to 150 pips for many weeks in a year. This characteristic allows very slow but steady growth on my account on annual basis.

The Gap Trading strategy has been modified to give more and better trading signals (this modification would be explained in a future article). The strategy account grew by 3.2% last month, excluding open profits. This 3.2% increase resulted from around 640-pip gain since I use 0.01 lots for each $2000 in the account. If this risk was increased fourfold, the account would’ve grown by 12.8%. But this kind of risk is too high for me. I’m a funds manager, not a gambler: little drops of water make a mighty ocean

If one uses high risk, one might see one’s trading account sailing thru the air in one period. The next period the account would be plummeting to the ground. Behold the trader (using high risk) that suffers heavy losses with the most hyped and the supposedly best strategy in the world! Behold the trader (using low risk) that survives and makes profit with a terrible system!

This issue of risk management bears repetition. It’s true that there’s no such thing as risk-free trading, and that’s why the risk MUST be managed. Always put capital preservation, not profits, first

In 2008, Dr. Van Tharp declared in an interview that, with a terrible system, you still have the chance to meet your objectives through position sizing. When you have a superb system but don’t understand position sizing, you probably won’t meet your objectives. Picking the right entry prices has nothing to do with trading success and neither do amazing trading systems with high percentage wins. It’s evident that if traders would be more interested in sound position sizing techniques that work, the experience of many traders would change for the better. Doing so, you can escape many trading woes and anxieties that majority of traders suffer today.

Satisfaction outweighs the sacrifice when attempts are made to apply sound risk management.

You may consider signing up for my trading signals services and see how I survive the markets uncertainties and move ahead gradually, and do so along with me. You can do that here: http://www.fxinstructor.com/en/analytics/ituglobal

Also, the team at Fxinstructor.com now concentrates their efforts on helping traders make progress to the greatest extent possible. There are immense benefits in taking advantage of their services. You’d be glad you do so.

NB: Please watch out for my coming articles with these titles: ‘Resist the Lure of High Risk – Part 3’ ‘Is There Really the Best Time to Trade?’ ‘Carrying Out Stealth Raids in Weak and Strong Markets,’ ‘Worst-case Scenarios’, ‘Effective Swing Trading in Forex’, ‘Advanced Gap Trading’, ‘3 Recent Gap Trades,’ ‘Trading for a Livelihood,’ ‘If I Were a Trading Neophyte…,’ ‘Developing the Right Attitude towards Losses (Part 2),’ ‘The True Holy Grail,’ ‘Achieve Success through Sensible Risk-to-reward Ratio (An Interview with A trading Enthusiast),’ ‘Monthly Trading Report (June 2011),’ etc.

This report is ended with more quotes from Dr. Mircea Dologa:

1. “Even if you’re a lucky fellow, and have discovered either by your own study or thru mentorship, the most consistent and symbiotic trading technique, there remains the problem of assimilating and practicing it.”

2. “A professional traders has a few emotions. Many readers would be surprised to hear this, but we’ll mention the word ‘confidence’… and they’ll understand it rather quickly. Nothing can be done without it. No trader will use a trading strategy without having a full confidence in its efficiency. But it’s hard work to acquire confidence. It takes many months, even years to get acquainted with the optimal tools that you’ve tested and which are prone to give the best trading results. Confidence is a rare friend that once acquired, will assist the trader day-after-day.”

3. “You attitude is based on the confidence that you have in your store of experience. Keep in mind that slumps and joys are two indispensable emotions in trading process. Being under pressure shouldn’t change this attitude. At the end, there’ll always be a new day and the sun will rise again. But keep one thing in mind: preserve your capital by holding to the rules concerning the ‘tiny bits’ stop losses.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

Yahoo! Messenger ID: saazalmu

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

NB: There is risk of loss in trading, but it is possible to be a successful trader.

 

About Me
My Articles

“You can’t know exactly what will happen, but as long as you have properly managed risk, a losing trade isn’t fatal.” – 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 4-hour charts, looking at the trend. My preferred leverage is 1:100 and my position size is 0.01 lots for each $2000. The risk per trade stands at 1%. The Stops are my life insurance policy. I use the Price Behavior rules for strategic decisions and customized indicators for tactical entries. I believe that a ‘buy’ signal that fails is a ‘sell’ signal; and a ‘sell’ signal that fails is a ‘buy’ signal. I open primary positions with a risk-to-reward of 1:3, riding the trend until the target is hit or I’m stopped out. 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.

In addition, the competitive financial markets system produces not only winners who prosper but also losers who suffer. Traders survive and prosper only when they take trading ideas that work serious. Could the traders that are prosperous be encouraged to help those who are still suffering in the markets?

Below is the summary of some of my trading activities this week.

 

AUDUSD

Primary Trend: Bearish

Bullish attempts have been constantly rejected on this pair. There’s a strong resistance at 1.0750, which must be broken sharply for the upward trend to resume. If not, the downward trend would continue.

Order: Sell

Entry date: May 20, 2011

Entry price: 1.0662

Stop loss: 1.0765

Trailing stop: 1.0662

Take profit: 1.0065

Exit date: May 27, 2011

Exit price: 1.0662

Status: Closed

Profit/loss: 0 pips (breakeven)

 

NZDUSD

Primary trend: Bullish

The Kiwi is very strong at the present, and I’ve a long trade on it. There’s a retracement which may be a new opportunity for buyers. However, if the retracement proves to be the beginning of a new trend, then I’ll close the present position with a small loss, looking for a way to go short.  It’s that simple: if the price is rising, go long. If the price is falling, and the trend is bearish, then sell and sell short.

Order: Buy

Entry date: May 30, 2011

Entry price: 0.8156

Stop loss: 0.8058

Trailing stop: N/A

Take profit: 0.8758

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 9 pips

 

 

EURCAD

Primary trend: Bullish

The resistance at 1.3900 was challenged successfully – something that has resulted in a strong northward move. This upward move has resulted in a visible bullish trend. The trend is still early enough to be taken advantage of. I have a long trade on the cross.

Order: Buy

Entry date: June 3, 2011

Entry price: 1.4158

Stop loss: 1.4058

Trailing stop: 1.4158

Take profit: 1.4747

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 147 pips

 

EURAUD

Primary trend: Bearish

The trend on this cross still remains bearish, though the price has shot up. My last trade on it was stopped out with a good profit. If the present scenario continues, the primary trend may turn bearish. This depends on some fundamental factors; things that are interlaced.

 

EURNZD

Primary trend: Bearish

The price is trying to trudge to the upside, but this looks limited. If the Euro fails to maintain the presently precarious supremacy, there’ll be sharp sell-off on this instrument. Currently, the price is quoted above the SMA50, but still below the SMA 200.  The ADX 20 level is above 30. The -DI is below the +DI, indicating a bullish pressure.

 

AUDJPY

Primary trend: Bearish

The price has been caught in what looks like a kind of zigzag movements. The price would threaten to rise, only for it to fall.  The market seems quiet now, considering the coming NFP release. When this kind of release is expected, the markets are usually in graveyard silence ahead of the news.

Order: Sell

Entry date: May 19, 2011

Entry price: 86.91

Stop loss: 87.95

Trailing stop: 86.91

Take profit: 80.95

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 67 pips

 

Conclusion: Even though trading ideas that work sound simple, putting them into practice and benefiting from them is quite another matter. Traders could spare themselves many financial woes if only they’d endeavor to follow these ideas.

This update is ended with a quote from Dr. Woody Johnson:

“If you choose to avoid all pain and discomfort, and remain in the comfort zone, you will never experience growth. It cannot happen in the comfort zone.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

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.

 

About Me
My Articles

“This approach might seem somewhat exaggerated for inexperienced traders, but my experienced for more than 10 years has taught me the value of psychology and money and risk management. Watch your wallet! Without capital there’s no trade, and there’s neither trading nor investing. The trader will become a dead duck”– Dr. Mircea Dologa

Hello:

Why are many systematic and discretionary trading approaches prone to short-term success and long-term failure? If there’s anything that financial history teaches us, it’s that the daunting job isn’t acquiring wealth but holding it for a long period of time. Isn’t this the reason why many traders enjoy huge profits in favorable markets and suffer huge losses in bad markets? Therefore the noblest aim is to gain as much as possible in good markets and lose as little as possible in bad markets. This is the way to survive. Results don’t come quickly in trading and if they do, they tend not to last. A disciplined trading approach is an investment in your future and you’ll reap enduring, consistent rewards if you have the strength of character to implement it.

Below is the summary of some of my trading activities this week.

AUDUSD
Primary Trend: Bearish
Within the newly formed bearish trend, the price was making attempts to rise; something that caused me to be stopped out at breakeven. It seems the bulls’ power is presently limited. If the bullish rise can’t go on further, another bearish move may resume.
Order: Sell
Entry date: May 20, 2011
Entry price: 1.0662
Stop loss: 1.0765
Trailing stop: 1.0662
Take profit: 1.0065
Exit date: May 27, 2011
Exit price: 1.0662
Status: Closed
Profit/loss: 0 pips (breakeven)

NZDUSD
Primary trend: Bearish
The bearish trend has already been violated seriously. If the present condition continues for a few more days, this would spell another phase of an uptrend. So I’d be looking for a way to buy, and of course I’ll set my stop and target. Every trade must have its stop loss and its target(s).

EURCAD
Primary trend: Bearish
There have been constant weak attempts by buyers to drive the price higher, but there’s great resistance at 1.3900. This resistance was challenged unsuccessfully. The price is still threatening to move upwards, and if it succeeds in doing that, another bullish phase would resume. I was stopped out of my short position with some profit.
Order: Sell
Entry date: May 5, 2011
Entry price: 1.4204.
Stop loss: 1.4404
Trailing stop: 1.3908
Take profit: 1.3617
Exit date: May 26, 2011
Exit price: 1.3908
Status: Closed
Profit/loss: 296 pips

EURAUD
Primary trend: Bearish
The primary bearish trend on this cross remains intact (and therefore my position is still open). The Euro remains weaker than the Aussie and this is expected to continue – it may even be more serious in the nearest future. Traders would do well to look only for opportunities to short this cross, minding the safety measures that can preserve their portfolios. One shouldn’t focus on winning, but on not losing.
Order: Sell
Entry date: May 5, 2011
Entry price: 1.3795
Stop loss: 1.3995
Trailing stop: 1.3511
Take profit: 1.3202
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 471 pips

EURNZD
Primary trend: Bearish
The bearish ride noted last week still continues. The Kiwi is presently too strong for the Euro and the chances that this situation can change are very slim. The price is still quoted below the SMAs 50 and 200. The ADX 20 level is close to 39 (showing a formidable strength in the bear market). The -DI is still above the +DI, indicating a persistent bearish pressure in the presently strong trending mode. My short position on the cross reached its target.
Order: Sell
Entry date: May 17, 2011
Entry price: 1.8130
Stop loss: 1.8256
Trailing stop: 1.7888
Take profit: 1.7556
Exit date: May 26, 2011
Exit price: 1.7556
Status: Closed
Profit/loss: 574 pips

AUDJPY
Primary trend: Bearish
I have an open position in this market right now. The market shows a real tussle in the context of the downtrend. The best thing to do now is to sell on rallies; since every bullish correction simply leads to a new selling wave. When the markets are reacting to unexpected news, correlations between the different markets would increase (as they often do in times of crises).
Order: Sell
Entry date: May 19, 2011
Entry price: 86.91
Stop loss: 87.95
Trailing stop: N/A
Take profit: 80.95
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 18 pips

Conclusion: Successful traders had had long struggles to adapt to the trading principles that work, but their patient efforts paid off. They’d been subjected to severe tests of their aims and ambitions as traders: but they’d learned many lessons, and their determination remained unbroken. Indeed, they emerged from the onslaught with great trading skills and valuable experiences.

When asked what his worst drawdwon was, Dr. Mircea Dologa answered with some of the quotes below:

1. “It happened many years ago. It was $3500 for a single day! Do you want to guess why? I did not follow the stop loss rule. I… simply made the error of not having a stop loss in place”

2. “Another thing is that most novices aren’t even aware of how much fraud there’s in the trader training and education business. Traders call it snake oil. But there are many ways to efficiently avoid it.”

3. “It takes a lot of hard work to reach the professional level by way of the labyrinth of the learning. Secondly, we should talk about what personality traits are indispensable in making an excellent trader: perseverance, patience, mastering impulsive behavior, giving-up some of one’s strongly-held beliefs, training oneself to the feel and practice of routines and specifically paying attention to details. As you might guess, the list can be very long. The trader who’s not capable of changing, creating or re-inventing these traits will have a very difficult journey, in the process of beating the learning curve.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

yesGet 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.

 

Simultaneous Release at
TheGeekKnows.com Learn Forex Trading and view Daily EUR/USD Reviews.
 
Good day forex trading koalas.
In the previous EUR/USD review, we explored the hit on the sentiments currently affecting the currency pair. Speculations…

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?Protect yourself. Don’t worry that the market movers will see your stop and come to get it. Most of you? are not big enough to attract the market movers. Besides, if you trade correctly, you will not see your stop run very often.? ? Joe Ross

Hello:

Why should a trader worry about something inevitable? You need to get rid of the mindset that you can?t just take a loss. Why? Because if you don?t, your trading career will be short-lived. One must be grateful for the existence of stop orders, since there?ll still be money available even in case of a series of losses, to continue pursuing a trading plan. Don?t run your losses; and above all, there?s a need to provide the necessary rational confidence and discipline to follow a system rules while reducing the effect of emotions when making trading decisions. Even, the best soccer team in the world would suffer occasional defeats. The aim of any good strategy is to make as much as possible in a good year or month and to lose as little as possible in a bad year or month.

AUDUSD

Primary Trend: Bullish

The pair has moved up by over 600 pips since last week, following a sharp sell-off which occurred a result of the natural disaster in Japan. It seems the market has gone too far; making a reversal imminent.

NZDUSD

Primary trend: Bullish

The Kiwi has gained serious strength against the Greenback ? just as the Aussie has done (the same factors have the same effect on both pairs). Once you?ve an idea of why a price moves in the context of an overall trend, then see if it makes sense to buy or sell.

EURCAD

Primary trend: Bearish

This is a real battle of bulls and bears: the former would have a temporary victory but later capitulate, and vice versa. The price is falling as a result of the weakening of the Euro against the CAD. If the ultimate target seems to be the 1.3500 level and if it?s broken, the bearish run is expected to continue. Otherwise, the price would rally

EURAUD

Primary trend: Bullish

I had a short trade on this cross. The cross reached a peak of 1.4325 in March before a strong bearish move began. If the Australian currency continues its strength, then the price could eventually reach level 1.3000. If you?re riding the trend, the looser you?re willing to trail, the better your chances of capturing bigger moves.

Order: Sell

Entry date: March 17, 2011

Entry price: 1.4309

Take profit: 1.3709

Initial stop: 1.4509

Current stop: 1.4009

Exit date: March 28, 2011

Exit price: 1.3709

Status: Closed

Profit/loss: 600 pips

EURNZD

Primary trend: Bullish

This instrument is weak at the present; in the context of an uptrend. The price has now gone below the SMA 20. The ADX 20 level is showing a trend which is not very strong. +DI has gone below its ?DI counterpart. It looks like the market is presently around a strong demand level, and it might make sense to wait for more action before a trading decision is made..

AUDJPY

Primary trend: Bullish

From March 10 to March 16 this year, the price of this market fell by over 900 pips, only to be followed by a rise of over 1100 pips in 10 days. This came as a result of the massive selling of the Yen by world powers. The Forex markets are interesting because of opportunities that abound round the clock. If you?re looking to get involved in the Forex market but feel as though you don?t have the time ? that?s clearly a poor excuse (given the fact that it?s a 24-hour market).

Conclusion: A hypocrite is someone who acts like something he isn?t. In his book The Practice of Piety, Lewis Bayly, chaplain to England?s King James I, said that ?one who hopes to effect any good by his writings? will find that he will ?instruct very few?. The most powerful means, therefore, of promoting what?s good is by example?. One man in a thousand can write a book to instruct his neighbor?. But every man can be a pattern of living excellence to those around him.? With humility and unconditional acceptance of reality, I?ve always written that losses are inevitable, but the most important thing is to avoid a margin call and ultimately gain more than is lost. My clients have a first-hand access to my trading accounts and witness this unavoidable truth. For those who talk about their profits only and keep their mouth shut about their losses, it?s like the case of a blindman. The blindman who says he?s asleep when in fact he?s awake deceives himself; when he?s awake, whom does he see?

I?ll end this article with quotes from Will de Lucy:

1. ?The key word is discipline. If you don?t have this you won?t have control over your trading in the long run? It isn?t important to make a lot of money but to work consistently? To achieve this aim, you obviously need discipline. But expectations of achievable returns ought to be realistic. ?

2. ?You?re professional when over longer periods of time profits are made constantly and steadily. Obviously, the size of these profits depends on the base capital and the position sizes.?

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

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.