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“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
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“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.

 

About Me
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“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.

About Me
My Articles

?You cannot be a successful trader if you are not willing to have both profits and losses? “It?s like only wanting to breathe in and not wanting to breathe out.” Both are a significant part of the trading process… The other half of the equation is also important (and equally puzzling). You can?t put too much importance in gains. People who value profits too highly, tend to take them quickly. Why? Because if they don?t take them, they are afraid they will get away.? ? Dr. Van K. Tharp

Hello:

It?s true that if you continue to work hard on the market, you?d eventually achieve constant survival that you dream of.

Last week, my GBPJPYUSDCAD Hedging strategy experienced some tolerable drawdown ? something that would be recovered soon. In addition, I saw about 7 gap trading setups on Monday and I traded accordingly. On Friday, I closed all open positions with roughly 500-pip profit. Yes my clients? appetite is being whetted in advanced, since they?re ready to become beneficiaries of this effective trading methodology.

Last week, I was again invited by another former trainee of mine. As a financial expert, he served in the federal civil service for 35 years. After retirement, he dabbled into agriculture without expert knowledge ? only to lose a lot of money. Can you now see that trading isn?t the only business that entails serious challenges? However, he was lucky enough to have started Forex training on the right path. He practiced rigorously for almost 3 years before deciding to play the market with real money.

When I saw the account he was managing, I was amazed. He?d made over 2600 pips in 4 months! I saw 500+ pips as open profits and they increased to almost 700 pips before I left. I was extremely glad that he?d stuck to the risk management parameters I recommended to him. He was able to survive December and January as well, plus he suffered occasional drawdowns which were recovered eventually. If you feel that 26% returns in 4 months are a small profit, then it?s high time you did something else.

He and the engineer I visited earlier had something in common. This thing would soon be revealed to my clients. Yes my trainees and clients are the direct beneficiaries of my trading methodologies.

How Top Traders Think
Top traders believe in their trading systems (systems that have positive expectancy) and their own ability to remain calm whatever happens on the market. They know that trading is a game of probabilities.

They know that all trading strategies in the world would have periods of losses each, and therefore survival is all about limiting your risk and giving away as little portion of a trading portfolio as possible. Whenever a strategy experiences a drawdown, they know it?s just part of the game ? for the strategy would recover in due course. It?s only a matter of time. They know that they don?t need to expect every trade they take to win: what they need to do is trading according to their entry criteria and managing each trade according to their predefined rules. They don?t ignore a trading signal merely out of fear, nor do they increase their risk because of overconfidence. Their main goal is to be more effective in trading, not struggling to force out higher hit rates.

Dr. Van, quoted above, says further: ?Most people? want to be right all the time. They want to make money on every trade. Yet that will not happen because losses are a part of the trading process. When you understand the relationship, however, you can come to terms with losses and make them okay. A natural part of the trading process is to have a point at which you must unload a position or trade at a loss in order to preserve your capital. Those losses will happen to most people about half of the time or more. And you must make them okay or neutral. If a loss is not okay, you will not take it. When you?re not willing to take a loss, it usually gets a little bigger. When it rains, it pours. As a result, it becomes even harder to take?much more painful. If you didn?t take it the first time, as it becomes bigger you will be even less likely to take it. What?s likely to happen? It probably will become even bigger. The cycle typically continues until the loss becomes so big that you have to take it. This typically occurs when you get a margin call from your broker.?

For certain people, it may take many years to develop a normal trading mindset; for others, they speed up their personal evolution as traders and survive their learning curve more quickly than imagined. If you can cultivate the kind of the mindset discussed here, you?ll soon see the seed of trading genius germinating within you. The team here at Fxinstructor.com is doing everything in their capacity to help you become the best trader you can be. You?ll do yourself a great favor by capitalizing on the services they offer.

NB: An article about effective gap trading in Forex is coming soon. Plus my article next Sunday would discuss the power of correlation.

Please let me end this article with another quote from Joe Ross:

?Accurately gauge your trading skills and trade accordingly. If you’re a master trader, then it’s important to trust your instincts. But if you are a novice trader, it’s prudent to be a little more cautious. Don’t trade beyond your skill level. Realize that you may not have the experience to trust your instincts unconditionally. Trading takes experience and practice, and until you reach the status of a master trader, manage your risk, take it easy, and hone your trading skills.? ? Joe Ross

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

?The willingness to be wrong can lead to excellent trading results.? ? Ken Long

Hello:

Knowledge is power only when it?s applied properly. Knowing the right things about trading can?t do you any good: it?s the disciplined application of those rights things that brings desired results. In spite of any adverse circumstances that might?ve affected your trading career in the past, you can go ahead and achieve your goals. Successful traders today also had challenges in the past. Once you taste consistent success in trading, I can bet that you?ll be hooked.

As regards my recent trading performances, you should be able to track the profits and losses of my weekly trading update (as mentioned in my articles). In addition, the account on which I use the GBPJPYUSDCAD Swing Hedging strategy now has a long-term profit of about 1500 pips, whereas the one I later made available to my clients currently has a (closed) profit of over 450 pips. My gap trading strategy, which would soon be made accessible to my clients, made these profits in less than 5 trading days:

AUDUSD = $1567.50

AUDJPY = $977.27

NZDUSD = $1309.45

EURJPY = $2014.90

GBPUSD = $2100.65

EURUSD = $2098.20

EURNZD = -$506.10

EURCHF = $2005.25

It?s very heart-warming to know that some clients and past trainees are able to duplicate my trading ideas ? with measurable success. Last week, based on invitation, I visited one of my past trainees. This cool-headed gentleman attended a one-day trading seminar about 4 years ago (hosted by a renowned media house), paying a sizable amount of money. But when he started practicing with demo, he quickly realized that the he had no trading skills. He was later advised to hire one man for further training. Unfortunately, the so-called coach collected his fees and taught him for 2 weeks – with no applicable sound risk management ? only to sell him a robot at the end of the whole show. This trainee still knew that he didn?t have enough skills to play the market successfully.

He knew that there must be secrets of successful trading somewhere, only that certain people who claimed the possession of the secrets still needed further training. A man?s worth is measured only by what he gives others. Someone told him about me and he arranged for an audience with me. The way I talked about risk management, trading psychology and making profit regardless of the market directions touched his heart. He therefore arranged for a personal training?

It?s now a testimony for him. I was happy that he?d made over 24% returns on his account in 4 months. I wasn?t particularly amazed that he survived the December and January easily ? something most traders find difficult. He?s a gainfully employed engineer, yet he knows that one day, his employer would say: ?That?s enough. We got to let you go.?

By gradually building good track records for yourself, you?ll soon see that success would constantly target you. You?ll discover that you steadily inch your way to the top. No-one can retire you from your profession as a private trader. Many had been making consistent profits from the market before I was born and they still enjoy their job as traders. Dr. Van K. Tharp – a word-renowned trading coach – reached the age of retirement early this year, but he would continue doing what he likes indefinitely. He?d already retired himself since early 1980?s, doing what he enjoys. John Burley, a multi-millionaire and former financial planner, retired himself at the age of 32. John Paulson made a profit of around $3.5 billion in 2008, and he?s set to take home around $1.2 billion this year. How many employers can give you that as a salary? An employee would resign, get retrenched, dismissed or retired; whereas looking for another job could be a frustrating and humiliating experience. You mayn?t become a billionaire thru trading, but you can attain the financial freedom you dream of. Think about the long-term benefit of trading and make your mind to learn the trading principles that work and discipline yourself to apply them.

What are your trading challenges? No matter what they are, you can overcome those challenges and move ahead. The best traders in the world have managed to overcome the obstacles they found on their way to becoming successful traders; and you can do that too. My past and future articles would continue to reveal what it takes to be a successful trader. Showing you how to be the best trader you can be is what we do here at Fxinstructor.com. Yes, doing the right things on the market will make you share testimonies later.

NB: An article about effective gap trading in Forex is coming soon.

This article is ended with quotes from Dr. Woody Johnson:

1. ?Personal mastery teaches you to choose. Choosing is a courageous act; it is about picking the results and actions which you will make into your destiny. Personal mastery is like holding a conversation with yourself. One part speaks of the future you want; another talks about the realities of what is going on around you and a third says, “…I choose to be the trader I want to be and I choose to get the results I want to get and I accept what I must do to get it!” And, you’ll want all of these voices in the conversation, knowing that the power which pulls you toward your vision emerges from the relationship between them.?

2. ?Achievers have mastered self-programming. It doesn’t mean that they are not challenged or that things aren’t difficult, but they use these situations as opportunities to ramp up their focus on what matters most in both their trading and in their lives.?

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 I am stopped out on a trade, I consider it the cost of doing business as a trader.? ? Scott Andrews

Hello:

Traders should think about the consequences of their position sizes and exit techniques before they act. Your exit strategy consists of two parts: Where will you get out of the trade if the market does not go in your favor? Where will you take profits if the market does go in your favor? You only act according to trading rules and then determine a safe position sizing method. In either case, you should always determine where your stop is going to be and how you are going to take profits before you get into the trade. Have a solid plan in place (write it down). This will take all of the emotion out of the trade. Then you can relax and trade the ?map? that you have created. This will make your exit strategy easy to follow and it will put you on the path to success.

AUDUSD
Primary Trend: Bullish
This pair tried to move up at the beginning of the week, but an effective resistance at 1.0200 rejected further bullish move. The market reversed, hit my adjusted Stop. My long trade closed with some profit.
Order: Buy
Entry date: January 31, 2011
Entry price: 0.9968
Initial stop: 0.9868
Current stop: 1.0059
Exit date: February 10, 2011
Exit price: 1.0059
Status: Closed
Profit/loss: 100 pips
Percentage growth: 1%

NZDUSD
Primary trend: Bullish
No sooner had the primary trend turned bullish than there?s a serious threat to it. The Kiwi eventually yielded its strength versus the Greenback. The initial signal was missed, but there may soon be a good opportunity to sell a short-term rally in the context of a downtrend. Intraday traders are concerned about what?s happening on the market now, rather than what happened on the market in the past.

EURCAD
Primary trend: Bullish
There?s been a constant restriction to a further bullish move beyond 1.3720. It appears that the Canadian dollar is getting very weak; because the Euro is getting stronger against the NZD. The initial weakness on the market has generated a nice ?sell? order, which would be entered as soon as possible.

EURAUD
Primary trend: Bullish
The short trade I had on this cross reversed against me and I was able to exit with some gain. It?s a kind of the market is trying to go into an overbought region. However this is not a ?sell? signal. The market can be in an overbought or oversold condition for a long time – new
Order: Sell Stop
Entry date: January 28, 2011
Entry price: 1.3700
Initial stop: 1.3800
Current stop: 1.3528
Exit date: February 9, 2011
Exit price: 1.3528
Status: Closed
Profit/loss: 170 pips
Percentage growth: 1.7%

EURNZD
Primary trend: Bullish
The bullish bias on this instrument remains intact. Plus this bias may continue if the NZD has further weakness. The price is above the SMA 20. The ADX 20 level is still showing low volatility. +DI is now clearly above its ?DI counterpart. I may buy when the price experiences a pullback. I have no open position on the instrument (this is also true of other pairs and crosses).
Order: Sell
Entry date: February 2, 2011
Entry price: 1.7832
Initial stop: 1.7932
Current stop: 1.7725
Exit date: February 4, 2011
Exit price: 1.7725
Status: Closed
Profit/loss: 100 pips
Percentage growth: 1%

AUDJPY
Primary trend: Bullish
There?s been a steady rise on this cross. Any further significant weakness in the AUD could make the cross go down. Money would be made in any market conditions, and that?s what?s also been put in mind. No matter what happens, I?d remain cool because I know that doing the right thing would ensure my long-term survival. I?ll just need to enjoy myself, knowing that my risk is under control. Would you advise me to drink Champagne?

Conclusion: Do you have a realistic trading goal? What do you want out of trading? Do you have reasonable expectations, or do you fantasize about things that may be beyond your ability and trading realities? Wise traders don?t pursue unrealistic goals. They, therefore, try to be content with whatever profit they have. As long as their trading portfolios are safe, they?re satisfied with any increment they have on it.

I conclude this article with more quotes from Scott Andrews, a highly efficient gap trader:

1. ?I knew there were hundreds, if not thousands, of ways to make money in the markets, I just needed to find the right one for me.?

2. ?I would say that sticking with my system when it has a drawdown is probably the toughest aspect for me.?

3. ?Since there are no bosses to provide feedback on a daily basis, it is easy to link one?s sense of self worth to one?s performance in the markets for a given day or week or month. But do not! It will only make your trading worse. It took me quite a while to dissociate my trading results from my self-esteem and to avoid letting my daily results affect my mood.?

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.