The beauty of being a market follower (instead of a market guesser)

Hey how is your trading going? Actually… let met take a guess!

If you have been trading the EURUSD… you are not doing “that” well…

How do I know this… well, take a look at the following EURUSD chart:

EURUSD Chart

It’s been almost impossible to trade in the last 45 days… notice how the big moves happened during important announcements, and as you already know, its very difficult to trade them.

If you’ve been successfully trading the EURUSD I’d like to hear about it… let me know in the comment section.

Now, if you have been looking for trades on other pairs or crosses, such as the AUDUSD… you might be doing a better job…

So… did I miss?

Anyway…

Being a market follower

Last week I talked about the AUDUSD… it was trading around an important level and pointed out my plan to trade it… here is last week’s plan along with the chart:

AUDUSD 30 minute chart

And the plan was: If it breaks the resistance level I’ll be looking for long opportunities, and if it breaks the bottom of the range I’ll be ready to look for short opportunities.

Well, it broke the bottom of the range, the green support level, which triggered a bearish market condition.

And since then, the AUDUSD has been going down, and down, and down… here is the chart:

AUDUSD Short term chart

What is important here is that I never tried to guess where the market might be going… I just created my trading plan and waited for the market to tell me what direction to trade.

Once the AUDUSD confirmed the market condition, I was ready to trade it…

Following the market is way easier than trying to guess, its less stressful, it gives me more confidence about my trades, makes me feel more comfortable about the methodology, etc.

Your Turn

Are you a market follower or guesser?

Where do you have your next support level in the AUDUSD?

Let me know in the comment section.

Tags: ,


Raul Lopez

I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .


  • wonderful , it is awesome ! And i completely agree with your words Mr. Lopez !

    • Raul Lopez

      Thanks Himanshu, I’m glad you agree!

  • Tony Chamberlain

    Hi Raul,

    Lovely approach to reading the market. By nature most humans (traders) love to be in control and exert their control on the market, however your approach pays you nicely I’m sure.

    Would be interested to know at what price you sold the Aussie and whether or not you are still holding?

    My target for this current move is around 96.50 with perhaps market take a few breaths around 0.9860, but will let the market decide for me. ;]

    • Raul Lopez

      Hey Tony,

      I wasnt able to sell the breakout, so I waited a little longer and entered just above the parity…

      And yes I’m still holding it, I have my next LT support level around 0.9700

      Where did you get in?

      • Tony Chamberlain

        Hand on heart, I missed it.

        I had sold the NZD USD from 0.8500. Cashed out of that one way too early @ 0.8390
        And then I missed my entry into the Aussie and the Kiwi again.