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“Perhaps the most exciting and daunting fact is that on this journey to becoming a successful Forex trader you’ll eventually realize that success and consistency have very little to do with which indicators you decide to use and more to do with your mindset.” – Gavin Knoesen

Hello:

It’s unfortunate that many traders don’t know what they’re doing. Rather than cutting their losses and running their profits, they cut their profits and run their losses. Those who make the matter worse are those who use too high position sizes, relative to their account sizes, because they believe that an entry system has high winning rates. They want to become rich quickly. They still feel it isn’t sensible to use small position sizes in spite of heavy losses they may’ve suffered in the past. They think they can beat the markets with their ‘magical’ entry systems. They don’t know that a sailor doesn’t beat the weather; he has to cope with it.

Don’t forget that those you compete against are professionals who’re willing to make gains from the money you lose. This is the attractiveness of the financial markets: each market speculator uses the position sizing they think is the best for them and trade the way they like. But at last, it’s our consistent survival and profits that’ll serve as the justification of our trading beliefs.

July Trading Results
The profits mentioned here were realized last month. The trading results on live accounts and demos are similar; the difference is the position sizes that are proportional to each account balance. The USDCAD proved to be difficult in July, but we made some gains anyway. We made additional 14.42% as closed profit. That’s the purpose of this non-directional strategy: to make money regardless of what happens in the market. We can only look forward to more growth this August and the months to come. A future article would discuss further the details of this kind of strategy.

Last month, the Gap Trading strategy made at least, a net profit of 4,700 pips (a minimum of four thousand and seven hundred pips), enabling the account equity to grow by 24.4%. This was possible because there were over 45 signals from this strategy last month; the more the signals, the more the profits. It doesn’t mean that there were no losses. We had many losses as well as gains, but we moved ahead by applying the simple trading principles that work. A future article would shed more light on this strategy. Risk management always comes first in our mind, for traders should only play safe. Adroit funds managers must also be effective risk managers. We don’t trade instinctively, but according to clear rules. If you have a system that constantly works well, you must stick to it.

Beginner traders are far more impressed by what professionals do than by what they say. In fact, professionals who practice what they say are more likely to have more followers who listen to what they’ve to say. Here, we don’t simply talk about risk management and survival on the battleground of the financial markets; we show it. We acknowledge that traders can expect losses. A sane mentor doesn’t promise that trading will be easy, but risk control measures will help. To this end, positive testimonies have been received from trainees and clients.

Our confidence has been elevated to new heights, and yet we know we’re only experts in progress. We’re reassured that we could expect to see risk management in action in our trading career, especially in the face of the uncertainties of the markets. We’ve higher hopes and brighter expectations. Without doubt, doing the right things on the markets will help us accomplish great things in trading.

If you’d like to have access to my trading activities and trade like me (seeing when and how I place trades, plus how I manage open positions), you may gain access at: http://www.fxinstructor.com/en/analytics/ituglobal

Lastly, the team at Fxinstructor.com has been caring for the interests of Forex traders worldwide. You’d do yourself a great favor by taking advantage of their services.

NB: Please watch out for my coming articles with these titles: ‘Testimonies from My Subscribers,’ ‘Excellent Money Management Flexibility – Make the Best Choice!’ ‘Resist the Lure of High Risk – Part 3 (Use Low Risk and Reap Benefits),’ ‘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,’ ‘Developing the Right Attitude towards Losses – Part 3,’ ‘The True Holy Grail – The Long Sought for,’ ‘Suicide Trading Techniques,’ ‘Achieve Success through Sensible Risk-to-reward Ratio (An Interview with a Trading Enthusiast),’ ‘ Clarifying Some Issues – Part 5,’ ‘ Trade to Win!’ ‘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?’ ‘Monthly Trading Report (August 2011),’ etc.

I end this article with more quotes from Mr. Gavin:

1. “Beware not to be drawn to the over elaborate setups consisting of a plethora of indicators as this can often be quite intimidating to a new trader. When developing you methodology you’ll come to realize that a cleaner and simpler display of your charts will result in more concise trade planning and execution. Remember price action is the purest indicator you can use – learn it, listen to it and master it.”

2. “Forex Trading is one of the most rewarding and challenging journeys that you’ll embark on. The truth is that if you treat it with due respect and give it the time it deserves it’ll reward you generously. The early days will be tough, be under no illusion of that, and will require discipline, patience and hard work. You’ll learn many things about yourself and your character, but be rest assured that when you summit that initial mountain, the view is beautiful, the satisfaction sweet and the lessons learned are absolutely invaluable.”

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

“…When it comes to making good trading decisions, I actually find all the necessary information on the chart.” – Thomas Kahdemann

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 0.5%. 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.

Traders must accept the unpredictability of the future and see this phenomenon as an advantage, trading safely anytime a strategic signal is generated. Concomitantly, our safety measures must be sound and conservative in parameters. This is the only way to ensure long-term survival in the unpredictable financial markets. Yes, unpredictability is our permanent associate. The bright side is that it’s only unpredictability that makes it possible for us to realize all the returns from trading.

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

AUDUSD
Primary Trend: Bullish
The price level at 1.1000 proved to be a great resistance, though in the context of an uptrend. I sold short and made a profit. There’s been a serious violation to the bullish trend, but only an extended bearish movement would render the primary trend invalid.
Order: Sell
Entry date: July 29, 2011
Entry price: 1.0990
Stop loss: 1.1092
Trailing stop: 1.0840
Take profit: 1.0692
Exit date: August 3, 2011
Exit price: 1.0692
Status: Closed
Profit/loss: 298 pips

NZDUSD
Primary trend: Bullish
The level at 0.8840 has been a great resistance. The price has been falling in the context of an uptrend, just as the AUDUSD has done. The continuation of the present scenario would render the bullish trend invalid (unless the price resumes its northbound journey). As it’s inevitable, the trend would soon come to an end.

EURCAD
Primary trend: Bearish
This cross has been largely bullish this week, but again, it’s the continuation of the bulls’ domination that could render the bearish outlook useless. Personally, I anticipate more weakness in the Euro – for its days of strength are being numbered.

EURAUD
Primary trend: Bearish
There’s been a significant bullish breakout on this market. The Aussie has been clearly weak against the Euro. I’d like to wait to buy a pullback upon the turning of the trend to clear bullish, or I’d find a way to sell high, trading pro-cyclically.

EURNZD
Primary trend: Bearish
From a bottom of 1.6190, the price has arisen by over 550 pips. The price is quoted above the SMA50 but still below SMA 200. The ADX 20 level is slightly above the level 30, indicating a strong trending mode. The +DI has crossed the -DI to the upside. I’ve no new position here, for I’d like to see further developments before I enter.

AUDJPY
Primary trend: Bearish
On this instrument, what started this week as a bearish bias began to turn bullish on Wednesday. The trend is still bearish and I’m already in a short trade which was negative before turning positive. I’m not afraid whether the price moves against me or not, seeing that the market is a mere mass of individual players flowing in a certain direction.
Order: Sell
Entry date: August 1, 2011
Entry price: 84.65
Stop loss: 85.68
Trailing stop: 83.42
Take profit: 81.68
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 212 pips

Conclusion: Why do certain traders still look for ‘foolproof’ entry systems despite the available reality to the contrary? Why do so many traders act irrationally and greedily while trading, targeting high returns? Below, the quotes from Thomas Kahdemann answer these questions. The quotes end this article:

1. “When we’re in extraordinary – either positive or negative – situation, our body releases hormones that block rational thinking.”

2. “The… insight, which I fortunately gained long ago with the help of my mentors, is that the… market and in particular trading is a huge shark tank, where there’s only one goal: survival. This in turn implies that it’s all primarily about risk management and only secondarily about the maximization of profit. Those who choose to ignore this will very quickly ‘be eaten.’ ”

3. “So far, nobody has died of lost profit yet. The first loss is always the smallest, and since risk management always comes first, it’s irrelevant whether or not a position later turns. – Italics mine

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

“Yes I do (I believe that successful trading can be learned). But it’s obviously not easy. Once you’ve worked your way to a professional level, it’s also important not to want to optimize everything excessively. The KISS rule (Keep it Simple, Stupid) has proven to be a reliable guideline for professionals… It’s important that things don’t get too complicated here. So keep your strategy as simple as possible and avoid overly complex interpretations since this can exert unnecessary pressure on you while trading in real time.” – Thomas Kahdemann

Hello:

I used to believe that institutional traders were more skillful than private traders. Then, I wondered how long it’d take me to be like them, but later it dawned on me that they also can’t predict the future with absolute certainty. The fact that a trader has access to huge funds to manage doesn’t automatically make her/him a better trader than a trader who has less money. Furthermore, some people believe that trading in summer months is difficult because some traders tend to take vacation, yet I know those who currently make profits regardless of this belief; for there are always trending pairs/crosses somewhere. The fact that most top traders find the market difficult right now doesn’t mean that some private traders aren’t making money. I’ll continue saying that traders need to keep their strategies simple, because I’ve seen how a single indicator which is combined with price actions makes more pips than a complicated strategy using expensive charting software. There is no trading guru somewhere: the only way to become a guru is mentioned at the conclusion of this weekly update. And you’d do well to see the quote that follows at the end of the article.

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

AUDUSD
Primary Trend: Bullish
Last week, I said it was good to go long on this pair. I had a long trade here. Why? It was because the price action confirmed it: there was no other reason. However, it may be too late to go long right now.
Order: Buy
Entry date: July 22, 2011
Entry price: 1.0830
Stop loss: 1.0730
Trailing stop: 1.0959
Take profit: 1.1124
Exit date: July 29, 2011
Exit price: 1.0986
Status: Closed
Profit/loss: 156 pips

NZDUSD
Primary trend: Bullish
This pair has continued its journey northwards since last week. The kiwi remains a strong currency, but its days of strength are numbered. It’s possible for the price to retrace at this point. It’s always good to look left to make the right decisions.

EURCAD
Primary trend: Bearish
The pair is trying to edge its way upwards now, though the overall trend remains bearish. The price would need to break the price level at 1.3700 for this assumption to be true. I’m still anticipating more weakness in the Loonie.

EURAUD
Primary trend: Bearish
The strength in the AUD has been asserted again this week. There has been a sharp sell-off on this instrument. It’s better for speculators to find price levels by which this bearish move could be taken advantage of, rather than asking about the whys and wherefores of the market move.

EURNZD
Primary trend: Bearish
Slowly but steadily, and contrary to what I expected, the bearish move has continued. The price is still quoted below the SMA50 and SMA 200. The ADX 20 level is pointing towards the level 30, indicating a possible renewal of strong bearish pressures. The -DI has just crossed the +DI to the upside. I’ve no new position here.
Order: Sell
Entry date: July 15, 2011
Entry price: 1.6789
Stop loss: 1.6889
Trailing stop: 1.6639
Take profit: 1.6521
Exit date: July 19, 2011
Exit price: 1.6949
Status: Closed
Profit/loss: 268 pips

AUDJPY
Primary trend: Bearish
This market looks difficult: the long-term trend is still bearish, but the bearish outlook has been seriously violated. My last order was exited at breakeven. It’s better to stay away from this market now, as the AUDJPY is currently misbehaving.
Order: Sell
Entry date: July 12, 2011
Entry price: 85.42
Stop loss: 85.42
Trailing stop: N/A
Take profit: 82.46
Exit date: July 26, 2011
Exit price: 85.42
Status: Closed
Profit/loss: 0 pips (breakeven)

Conclusion: I’ve always revealed the folly of trying to predict the markets or using complicated strategies. We should focus on trading with very, very small position sizes; cutting losses as many as they are and running profit as many as they are. There’s no other way to be victorious.

The article is ended with a quote – which is an eye-opener – from Thomas Kahdemann.:

“When I was at the beginning of my career, working in a bank’s branch office, I always thought that people at the Frankfurt headquarters were better than everybody else and knew ‘how the … market really works.’ When I later worked at the headquarters, I quickly realized that this was not the case. There was the same uncertainty there as in branch office. Then I thought that at least the traders in the trading departments, for example, in Zurich, should know. When I worked there in proprietary trading, there was no trace of omniscience either. ‘But the top traders in the US are bound to know how it works,’ I thought. Yet again, I was disappointed when I worked in Chicago and was looking for the Holy Grail. No-one knows with absolute certainty how to achieve continuous gains. As a trader, you’ve to accept that and learn to cope with the inevitable uncertainty.”

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

I WISH I’D KNOWN THIS EARLIER

“If a trader believes that a talent or ability is trait-like, and unchangeable, he or she will be crushed after a failure. If, on the other hand, the person believes that a talent or skill can be improved and honed through experience, he or she will be less upset, less likely to internalize the losses under the same circumstances.” – Joe Ross

Hello:

If I were a trading neophyte, I’d be wary of those who promise 50% – 1000% returns on a quarterly basis, let alone on monthly basis. If making profits like that was easy, they’d never have to market their secret to colossal wealth. Going after huge profits is no different than courting financial disaster. Based on my personal experience, I’ve realized that there’s always a price to pay for stupidity. It’s better to learn lessons from others’ harsh experiences than from one’s harsh experiences.

If I were a beginner trader, I would ask prospective coaches to show me their own track records and forward them to a professional trading risk manager to interpret for me. I’d be suspicious of trading results that look too good to be true. I’d never be lured by account histories that use high risk to achieve huge profits in a short period of time or account histories in which stops are absent. I’d never trust any results that come from any source other than those that can be accessed by a valid login and investor’s password of a reliable brokerage account, live or demo. I’d also believe experts who make trades in live trading rooms and survive the uncertainty of the markets. By doing this, I’d escape the wiles of sham trading experts who’re out there to capitalize on my ignorance. The trading world is replete with criminality and hypocrisy. How could someone be callous enough to offer to give people what he/she doesn’t have? Many of them are out there. I can’t imagine how someone who can’t deliver consistently would ever offer to train others. Even if a trainee wouldn’t trade exactly like a coach, the coach should show him or her that they’re also surviving in the markets (if trainees would still choose a trading method that fits them). Who could be a more shining example than the best in their trades? A mentor should also be a successful trader, not just an adviser or educator. If a trading educator can’t show me his/her track records, I’d conclude that they’re not successful, and therefore, they aren’t qualified to teach me. The only criterion I’d honor is not university degrees or fame or business attire, but good trading track records.

If I were a trading neophyte, I’d create demo accounts on trading platforms of brokers whose demo accounts don’t expire. I’d practice, practice and practice on the demo accounts until I reached the level of consistent competence. Those who open live accounts when they’ve no good track records on demos may think they know what they’re doing, but the markets would soon prove them wrong. I’d never open a live account until I reached the level of competence, no matter how long it took me. It’s easy to open an account: it’s also easy to receive a margin call.

If I were a beginner trader, I’d choose only the brokers that allow excellent money management flexibility. I’d choose a high leverage to significantly increase my buying power, but I’ll keep my account intact with safe and stingy lot sizes. I’d never put $1000 into a standard account: plus using 0.1 lots for a position on $1000-capital is completely out of the question. Using 1% or less of my capital ensures that if and when a period of drawdown does occur I don’t lose too much!

If I were a trading neophyte, I’d discard any trading system that doesn’t include satisfactory risk management recommendations. I’d stick to a positive expectancy system I use despite occasional losses. I’d bear it in mind that complicated strategies can never achieve better results than simple ones. I’d simply cut my loss if I’m wrong and run my profit if I’m right. I wouldn’t complicate my trading strategies or add many more indicators.

If I were a beginner trader, I wouldn’t give up in the face of discouraging advice from those who are ignorant of what trading is all about; neither would I feel inferior to the so-called top or institutional traders. Losses don’t discriminate. A committed private trader may even be more skillful than an institutional trader. The biggest difference between retail and professional traders is that professional traders have someone else as a risk manager who forces them to follow sound money management practices. Retail traders have the difficult task of monitoring themselves.

If I were a beginner trader, I’d never forget that I’m a student of the markets. Trading is hard at best; losses and difficult adjustments abound. When a trader shouldn’t sustain heavy losses or a margin call, accepting the reality of the market unpredictability, intermittent loss, and discipline can lead to happily brighter experience. Trading success is more about discipline than talent. It’s built on the back of the habits you form, and the commitments you make. It’s worth noting the fact that there are substantial differences between traders. There’s no single blueprint for market success. Instead, there are many paths to success and this means that each individual can find their own way.

If I were a trading neophyte, I’d never give up despite the challenges the markets would throw at me. I’d stick to trading until I find the secret to success. Those who explore other areas of human endeavor also face stubborn challenges. Life out there is very hard. Too often, we run from challenges. Yet successful traders whose results we wish we could duplicate continue getting impressive trading results because they battled challenges. Would life not be better if you were free of the daily grind – the conventional job and boss – and instead succeed or fail purely on the merit of your own trading choices? We’re the masters of our fate.

NB: Please watch out for my coming articles with these titles: ‘Testimonies from My Subscribers,’ ‘Excellent Money Management Flexibility – Make the Best Choice!’ ‘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,’ ‘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,’ ‘ Trade to Win!’ ‘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?’ ‘Monthly Trading Report (July 2011),’ etc.

This article is ended with a quote from Louise Bedford, an experienced female trader:

“When you truly desire something, your habits and actions will align themselves with your priorities. You’ll find yourself doing things that are congruent with where you want to be in life, and you’ll be granted some bonuses along the way as some things you’ve been desiring miraculously fall into your lap.”

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.

 

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My Articles

“While many traders equate being right to making money, I believe that you are right if you follow your rules, regardless of your results. If you don’t have any rules, I would consider everything you do to be a mistake. I define a mistake as not following your rules.” – Dr. Van K. Tharp

Hello:

You’re definitely happy whenever you make a profit, but what about a loss? Do you have the right attitude towards losses? Do you overreact when you incur a loss? Do you consider yourself a failure because of losses (something transitory)?

You needn’t feel too bad as a result of losses, and there’s no need for you to feel inferior to any trading expert. You might think that trading is also easy for them (whereas it’s not). You might wonder what’s wrong with you whenever there’s a loss. If you don’t address this issue properly, you can become your own worst enemy. Sooner or later every trader has some losses, but those who can deal with losses are resilient. Past losses shouldn’t preclude you from seeing the new opportunities the markets can offer you. Whenever your entry criteria are met, bear it in mind that you have reasons to place the trade, despite the risk of loss.

Profits and losses, which are a good example of polarity, are an experience every trader in the world must accept up front. You need to come to terms with your trading failure – real or perceived or potential? Does a temporary run of losses or another trader’s success really mean that you’ve failed? Certainly not. When top traders or marketers talk about their profits (and some of them hide their losses), you mustn’t feel that you’re a failure by comparison; neither should you think that the trade you want to take right now would be a failure. This unhelpful thinking attitude can hold you back from making an attempt, out of the fear that your chances of success are slim.

If you think all your trades must win, or if you never try new trades for fear of failing – then you’re involved in self sabotage. You can learn from your losses and be motivated to improve, or you can focus on what went wrong and stay within you comfort zone. It depends on what kind of trader you choose to be.

It’s not bad to evaluate the performances of a successful trader, providing it’s done in an objective manner. Instead of ‘stirring’ up competition – even if it’s just in your mind – acknowledge the accomplishments of others. At the same time, without becoming boastful, recognize your own unique abilities which can help your trading results if applied.

If I feel I’m likely to fail at a trade, I’d reduce my risk and make light of the situation. It’s better to gain small and lose small, than to gain big and lose big. If you’re always after big profits, you’ll never enjoy a long-term survival on the markets.

So instead of letting fear of losses immobilize you, put your heart into the task. Why not think of an occasion on which you had more profitable trades than you expected. What lesson did you learn form those profitable trades? How can that lesson help you conquer any fear of loss you may be experiencing now?

Which personal failing do you find most discouraging? For example, if you’ve given in to some trading weakness, does that mean you’re a hopeless trader? Or is it merely an indication that you need assistance? Instead of focusing on your losses, reflect on your profits as well.

No-one is perfect. Everyone fails at something, sometimes. If you give yourself a sensible risk-to-reward ratio, you’ll eventually gain more than you lose.

NB: Please watch out for my coming articles with these titles: ‘Worst-case Scenarios’, ‘Effective Swing Trading in Forex’, ‘Advanced Gap Trading’, ‘Resist the Lure of High Risk (Part 2).’ ‘3 Recent Gap Trades,’ ‘Trading for a Livelihood,’ ‘Force Index Indicator – A Tool Winners Use,’ ‘A New Way of Using the Williams’ Percentage Range,’ ‘If I Were a Trading Neophyte…,’ etc.

I’d like to conclude this article with more quotes from Dr. Van:

1. “Most people spend years training for their profession. Then, after they accumulate a little money, they just open an account and expect miracles. Trading success doesn’t happen like that; it only happens when you get training that would be equivalent to preparations for any profession… It’s more difficult to be a successful trader without a strong commitment and complementary personality traits.”

2. “If trading were easy, big money would make it almost impossible for people to enter the markets. But trading well is very difficult, so the entry requirements are easy.”

3. “A strategic trader is focused on the big picture rather than lots of facts and details; he is also more logical than emotional; and he is organized but not compulsive.”

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

?God does not play dice.? ? Albert Einstein

Hello:

Higher accuracy and correct entries can?t help your trading if you don?t let your profits run and cut your losses. This secret totally de-emphasizes right entry or accuracy and instead requires that you focus on the most important aspects of trading ? risk/money management and letting your profits run.

This kind of trading approach is very helpful. It?s one thing to read about booby traps that traders create by emphasizing higher probabilities and the gambler?s fallacy, or to read that random number series can contain protracted winning and losing streaks. The knowledge of how the market really works drives home the lessons about discipline, systems, and expectancy. This helps reinforce the idea that, no matter the trading system and analysis you use, you?ll get the same probability distribution as everybody else, and that your trading plan will need to address the fact thru money/risk management, trading rules, etc

This also helps change the way trading activity is framed because of the focus on systems results which strips away entries, setups and other false control illusions that traders inevitably get wrapped in. The opportunity to view a trading system as the random distribution of hundreds or thousands of independent trials can change one?s view about one?s ability to ?predict the markets,? and focusing on maximizing system outcomes can give one a fresh perspective on trading.

Realize, though, that no matter how much you?d want, you can?t control the market, nor can you manipulate the future uncertainties. You?ve to deal with the emotion of self-pity whenever you suffer losses. One trader explains: ?I felt guilty for being in a wrong direction whenever a trade went against me. But I came to realize that it?s ridiculous to feel that way. There can?t be a way of making sure that a newly placed trade doesn?t go negative at all. Profits and losses are just normal part of any business. So accept the fact that you?re not perfect. Dwelling upon all kinds of ?if onlys? won?t change anything, but it may have an adverse effect on your overall trading performance.

Profits and losses come to every trader ? professional and novice. Every successful trader now realized in the past that there was no point in hanging onto a losing position.

Some people deceive themselves by thinking that praying before a trade can enable to make right decisions always. I?ve seen those who blew their accounts despite this belief. I always shake my head when I see a soccer team praying before a crucial match, only to be beaten by their opponents who don?t pray. If I prayed for the EURUSD to go bearish because I?d sold, what?d happen if another serious-minded trader prayed for the same pair to go bullish because he?d bought? Whose prayer should God answer? This shows the senselessness of praying before a game or a trade. This kind of mindset didn?t help me at all during my novice years. I believe in prayers, but I also believe that God doesn?t play dice.

There?s a set of golden rules that work for every game under heaven. While adherence to golden rules doesn?t make us win always, it makes us survive constantly no matter what. God won?t do for you what He knows you can do yourself. It?s your duty to reduce your risk significantly, set your Stops, cut your losses, and run your profits. If you do what are contrary to this, you?ll bear the consequences no matter what/who you are, and no matter what/whom you believe.

NB: Please watch out for my coming articles titled: ‘Worst-case Scenarios’, ‘Analysis Paralysis’, ‘Effective Swing Trading’ and ‘Advanced Gap Trading.’

This article is thus ended with quotes from Peter Devaere:

1. ?There?s no doubt that anyone can get a sense of the market ? provided they practise long enough.?

2. ?Traders know that they?re the only administrators of their accounts and there?s a rather random distribution of profit and loss trades. Their task is to exercise strict discipline in order to easily work the balance between the two to their advantage. That?s all that?s needed.?

3. ?The stop should be regarded as protection to your capital and not as an integral part of your strategy.?

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

 

?Proper market speculation is simple; actually having the right knowledge and discipline to do it is not easy.? ? Sam Seiden

 

Hello:

Truly, the Forex markets are the best trend markets that exist. That?s why your long-term survival is guaranteed if you?re a trend follower and in the habit of letting your profits run. You can?t go broke by taking quick and small profits, but you can?t get very rich doing that either. Great profits come from strong trends. Then I?d always implore you to keep your risk low (even if it means risking 0.2% of your account to aim at 0.6 % profit!). With this, you may suffer several losses in a row without any significant ruin on your trading portfolio. High leverage enables traders with little capital to make big money ? albeit big losses, too. You need to constantly put it in your mind that, in order for you to win, someone else has to lose. Ultimately you alone determine on which side you?d end up.

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

 

AUDUSD

Primary Trend: Bullish

The pair is presently caught in what looks like a consolidation phase. Could the price rise from this phase or fall?? The latter scenario is more likely, for the price found it difficult to break 1.0580 level before retracing. Any remarkable changes in the current fundamental outlook would cause a steep fall in price (provided buying pressures thin out). Please prepare for that opportunity.

 

NZDUSD

Primary trend: Bullish

I still have a long trade on this pair, the Kiwi being a very strong currency at the present. I entered this order when there was an overbought indication in a lower timeframe. What you think is a late signal in a lower timeframe may in fact, be the beginning of a long-term trade in a bigger timeframe.

Order: Buy

Entry date: April 5, 2011

Entry price: 0.7681

Stop loss: 0.7481

Current stop: 0.7836

Take profit: 0.8279

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 247 pips

 

 

EURCAD

Primary trend: Bullish

I have a long trade on this cross. It?s still open and the risk on it has been eliminated already. Based on my expectation, the Loonie might only become weaker; something that can sustain the current trend outlook.

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: N/A

Exit price: N/A

Status: Open

Profit/loss: 182 pips

 

EURAUD

Primary trend: Bullish

There?s a serious threat to the current bullish bias, and a few more days of bearish pressure could change the overall trend. This market currently looks flat, so it?s sensible to wait for the price itself to confirm its own direction.? We wait for what?s worth waiting for, and in the process we learn patience.

 

EURNZD

Primary trend: Bullish

I can say that we have a very convincing bearish signal in the context of a primary uptrend. The price is still below the SMA 20. The ADX 20 level is now close to 40 and showing a strong trend. +DI has maintain a constant move below its ?DI counterpart. What I said last week about the cross has come true. I said it was possible for this pair to continue its southbound journey, because it was clear that the strong Euro couldn?t withstand the stronger NZD. The bullish bias might soon be rendered invalid.

 

AUDJPY

Primary trend: Bullish

Earlier today, I opened a short trade on this cross. The AUDJPY has gone up too far, and has experienced a bearish reversal. If this doesn?t prove to be a correction, then it?d be the beginning of a nice bearish ride. The Yen may strengthen with alarming ferocity.

Order: Sell

Entry date: April 15, 2011

Entry price: 87.83

Stop loss: 89.83

Current stop: N/A

Take profit: 81.83

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 1 pip

 

Conclusion: The study and the use of candlestick patterns in trading is good. However that isn?t any Holy Grail. In the long run, you?d hardly achieve over 50% accuracy with it; just like any other trading systems. ?Many idealized candlestick patterns to be found in textbooks that have been used by analysts for decades, don?t work. Under certain circumstances, some even have the opposite effects,? observed Christian Lukas, a highly experienced trader. What makes the study of the candlesticks to be more complicated is the fact that a defined pattern may consist of several individual patterns. For example, what appears as a Doji on a daily chart is made up of many different patterns in lower timeframes. A key to easy trading life still lies in keeping everything very simple. No matter what analysis you use, you?ll sustain an eventual probability distribution like everyone else, and therefore, you still need to let profits run; otherwise you?re inevitably involved in self-sabotage.

I end this article with the quote below:

?In trading, as is the case with piano playing, certainly not everybody will get to be a virtuoso, but all those who make serious effort are quite capable of achieving decent results.?

 

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

???I speak with market speculators both new and experienced and realize they are talking about something they think they completely understand when in reality, their perception of the truth is very wrong.??? ??? Sam Seiden

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. 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 for a maximum of 2 weeks. 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.

Every time you make a trading decision you got to choose: The pain of discipline or the pain of regret. Discipline is tough ??? and something we may try to avoid. But in sports and in trading, short-term pain is often the only path to long-term gain. In the heat of battle it???s too late to prepare. Either you???re ready for the challenges of trading or you???ll be haunted by the ???what ifs,??? ???if onlys,??? and ???I should???ves??? that accompany the failure to be prepared. That???s the pain of regret.

AUDUSD
Primary Trend: Bullish
Could this pair reach the 1.0500 level and break it and move higher? I believe this could happen only if the present fundamentals that drive the markets remain unchanged. Otherwise, there would be a nice opportunity to sell. Please prepare for that opportunity.

NZDUSD
Primary trend: Bullish
The direction of the NZDUSD is clearly similar to that of its AUDUSD counterpart. There must be a change in the investors??? risk appetite for any meaningful selling pressure to occur. You can take your profits now and then, whenever you???re right. Small risk would bring small profits (and better safety). Plus small profits can make a huge difference. There???s an open trade here.
Order: Buy
Entry date: April 5, 2011
Entry price: 0.7681
Stop loss: 0.7481
Current stop: 0.7681
Take profit: 0.8279
Exit date: N/A
Exit price: N/A
Status: Open
Profit/loss: 148 pips

EURCAD
Primary trend: Bullish
I have a long trade on this cross. The primary trend remains bullish, but there???s now some bearish divergence that can???t be overlooked. There may be a serious bearish move if the present situation changes, but the bullish trend is supposed to resume if there???s a significant weakness in the Loonie.
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: N/A
Exit price: N/A
Status: Open
Profit/loss: 94

EURAUD
Primary trend: Bullish
The EUR is having a hard time maintaining supremacy over the AUD in the present context of an uptrend. Could this be an opportunity to buy a pullback, or the present pullback would eventually result in a new trend? Only time would tell? You merely need to use your discretion and trade only what you see, for behavior resulting from a market expectation is hard to teach a computer.

EURNZD
Primary trend: Bullish
There???s been a bearish signal in the present context of the primary trend. I???m looking for an opportunity to enter at the right time. The price has now gone below the SMA 20. The ADX 20 level is showing a strong trend. +DI has gone below its ???DI counterpart. It???s clear that the present scenario has a greater probability of continuation. If the strong EUR can???t currently withstand the NZD, what would happen if the former eventually weakens?

AUDJPY
Primary trend: Bullish
The Yen is now one of the weakest currencies out there. If the level 90.00 is successfully broken on this cross, then the present bullish scenario may continue. If not, the resistance may cause the price fall. However, there must be a significant decrease in the strength of the Yen for this to happen. Take risk control serious ??? no matter what happens. Focusing on risk management is the best and the wisest trading decision you???ll ever make.

Conclusion: As a final world for this week trading update, I???ve always said that it???s better for traders to find strategies that work for them rather than depending on automated software for their financial fate. Brendan Egan has more to say about this:

???I luckily never got fully sucked into this, but boy oh boy was I tempted at times. There are claims all over the internet of automatic trading computers that can place trades and think for you whilst you’re off at school, work, or on the golf course. I don’t have any experience with them, but from the people I have talked to who have tried them out they are something you absolutely must avoid.
I mention this because I know a lot of people online get sucked into false promises, and from what it sounds like a lot of these trading robots offer a whole lot of false hope. If you really want to learn how to trade and be successful in the markets, you have to put in the time one way or another to learn about how the markets work and to gain enough experience to be successful. There’s no substitute in the trading world for hard work and experience.???

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

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.