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:
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?
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:
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:
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.
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.