Trade Setups Commentary - Forex Trading Commentary Daily Forex Market Commentary:
The Dow closed down marginally today after a low volume trading session and a disappointing housing report led investors to halt the previous 6-day rally. Currencies:
The U.S. dollar gained on most of the major currencies today except the Australian dollar and New Zeeland dollar, however it looks like the dollar strength is set to continue across the board. Nice fakey setup on the eur/usd today that looks to continue the current downtrend into the 1.4220 area. Pair in focus: EUR/USD
The euro/dollar inside bar from yesterday broke out to the upside but then quickly got sold back down resulting in a very nice fakey setup. For more great price action setups and specific entry and exit ideas check out our member’s trading forum. For a more in-depth analysis of the Major FX Pairs and Pri
Trade Setups Commentary - Forex Trading Commentary Daily Forex Market Commentary:
The Dow closed down marginally today after a low volume trading session and a disappointing housing report led investors to halt the previous 6-day rally. Currencies:
The U.S. dollar gained on most of the major currencies today except the Australian dollar and New Zeeland dollar, however it looks like the dollar strength is set to continue across the board. Nice fakey setup on the eur/usd today that looks to continue the current downtrend into the 1.4220 area. Pair in focus: EUR/USD
The euro/dollar inside bar from yesterday broke out to the upside but then quickly got sold back down resulting in a very nice fakey setup. For more great price action setups and specific entry and exit ideas check out our member’s trading forum. For a more in-depth analysis of the Major FX Pairs and Pri
I have talked before about the need for a trader to be realistic and not take forex trading like a game.Take it from me, if I had saved some of the money I have lost trading, I could have bought a few shoes. Now for those who think that this will end as soon as you have been trading for sometime, then think again.
I do not know of any business on this earth where everything is just fantastic, everyday ,every time, any how . Even Donald Trump was bankrupt and he owned buildings I might never be allowed to go into.
One of the things that how to start winning again was the need to set realistic forex goals. I do not mean do not go for the million. Everyone has their goals and mine is definitely different from yours. So set your own !
We talked about what would happen to any forex trader who does not set realistic forex goals. Lets try to be positive here for a moment and see what we can do to try have realistic goals.
1. Keep your Forex Goals Modest.
There is nothing wrong with going for 50 pips a week or 10 or 20 as long as you have proper money management. 50 pips a week is about 10 pips a day . My experience is that after being a bit more realistic I might just trade once or twice a week. If I have a losing trade, it goes to 3 trades a week.
There are 5 days in a trading week. 2 of those must trend. You really should not be trading the other 3 if you are a trend trader. So you reduce your work to figuring out which days trend for the particular market you are going for.
Modesty is also a good virtue I hear and creates good Karma.
2. Trade with the right Amount of Money
Stop trying to go for 1 million dollars when you only have $1000 in your account. I can assure you that no one has done that yet. Fund your account with the amount of money you can afford to lose ( whatever that means) and use proper money management.
If you lose money trading $100 in your account, believe me, you will lose money trading $20,000
3. Stop Looking for the Big Trade
I have had a few friends try to go for the 100 pip move after they saw me trading. They end up being frustrated because they wanted to hit the home run. There are very few “big ones” that a new trader can get. Even Barry Bonds had to take steroids to hit those “big ones”.
Go for smaller returns until you are comfortable in yourself and your trading methodology. 10 pips in your account is much better than minus 50 pips in your account.
4. Take Trading like a Business
This is not a casino. You are bound to lose in the long run ( you may actually lose in the short run too ) if you do not take trading like any other business out there. You need to put in the time and gain experience just like any other business out there. Reading about the fantastic cornflower system and putting in your milk money is a sure way to be broke.
Make a business plan just like any other business and in our case is a reasonable and detailed trading plan.Stick with it and let the market take you where it will. Which brings us to the next point.
5. Stop Chasing the Market
Understand that the market will go where it will. Your only problem is trying to figure out where it is going and not reading a forex blog with a great new idea and following it. If you follow step 4, you really should not be chasing markets.
The market is not your father or mother, it will not listen to your cries that you can’t pay the mortgage. Try and stay realistic when the market is not. I never trade anything if I do not know where the market is heading.If I am a bit confused I go back to bed. Learn to live for another day.
6. Have some Faith in Yourself
You are not going to win everyday. There are choppy days in the market , the forex scalper makes money then. There are trending days in the market, the forex scalper loses money then.
If you think that you are perfect, then you would be better served to send a check to your broker and get it over with instead of trading funny hours of the day looking at something going up and down on your computer screen.
True faith in yourself means that you learn from your mistakes and try not to repeat them.
Trading is a great business and as long as one takes the effort to learn all that is there to learn from it, you are bound to succeed ……..IN THE LONG RUN.
