Being a successful trader is about making the right choices. And sometimes the best we can do is to stay on the sidelines.
You’ll see what I’m talking about in the next chart:
What you see on the yellow box is how the EURUSD traded this week.
It started with a very slow Monday and Tuesdays (the range for some currencies in those two days were around 30 – 50 pips).
Then on Wednesday, we had an important announcement, the FOMC statement (#1). On Tuesday Draghi’s speech (#2) and then today, the NFP report (#3).
The only day I saw an interesting pattern was on Wednesday I put an order to go short on the EURUSD, but had to cancel because it didn’t get triggered before the FOMC announcement.
Anyway, I don’t see any “tradable” pattern in this chart. Do you see one?
There are no clear support and resistance levels, if we don’t have these levels we don’t know when the market is likely to reverse, if we don’t know where the market is likely to reverse, we don’t know where to set stop loss levels, entry or even take profit levels.
Do you agree with me here?
So trading, at least for me, is about making the right choices, about trading only when the odds are in your favor, if we just keep doing this, sooner or later, the results will come (good results I’m talking about).
And you know what I think about trading fundamental announcements, I think it’s crazy.
Now it’s your turn…
I’d like you think about this, and when you are done, leave a comment.
Do you agree with me? What did you think about the markets this week?
Tags: trading psychology