Blog Archive

Wednesday, February 17, 2010

Trading to Win

Blindly following someone else trades is reckless, so I hope you will notice what I'm doing, because you need to know why the trade is a good setup before following anyone's trades.
I try to spell it out everyday.

For this last trade the oscillators were all in alignment. The forks were bouncing the price down, a target was set by the forks, and the stops were short due to the confinement of the downward fork. On top of that it looked like it needed one more wave. If you don't see it then don't trade it! I assume you know what I'm showing, but if not - ask me.

Shorting here with a target below.

Taking profit here

This was an easy setup. I cherry pick the trades I show, but to tell you the truth it's not for you that I write about these trades. It helps me to sort out my strategy. If I write about it, I find that I have to think it through, and that helps me stay out of the risky trades I'm prone to taking.

Something else I'd like to address is the tendency to read blogs when a trade is going badly.
I've been there, hoping and looking for a reason to hold onto a bad trade. I hope you will look at my Blog, and simply recognize that I am only presenting what I believe to be the best odds for the days bias. Don't let me be your reason to go down with the ship.

The indicators I use are about 75% accurate so that tips the odds. Then you add your hunch or whatever it is that you do to decide your own trades, and there is hopefully a better than 50% chance of making a profit. But I want to stress this point. If you find yourself looking for someone to make a bad trade look better, it's time to reconsider why you trade.

Each and every moment is a new opportunity to make money. Never allow yourself to be married to a trade gone wrong. Ask yourself every few minutes if this is a trade you would take right now, and understand why you would take that trade. Don't look at your trade price and think about your loss or less than expected gain. It's all relative and comes down to which side do you want to be on at any given moment.

If you trade with a goal you will be disappointed. If you trade with the odds you will trade like a pro.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.

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