600 pips and counting (why I took this trade) plus one more signal
Today I want to talk about something very important, something that we have to deal with as profesional traders.
I think that most of us have one goal in common: get consistent results.
Getting there is one of the hardest things to do… and you know why?
Because even when you are doing everything right, the market could still move against you. That’s something that very few traders get to understand.
Lets put this into perspective.
You play classical guitar, you know that in order to perform a difficult piece, you need to practice. So you practice day in, day out, and when gets the time to play that piece, you perform well (if you did your homework).
Or lets say you are an athlete, you want to run a 42K, you know that you need to get in shape, so you do get in shape, so that in the day of the race, you perform well.
Now, being a trader is different. Because you can do all your homework, do your analysis, wait for your signal, and still, the market could move against you.
In order to success in this business, you need to really accept the fact, that every time we place a trade, there is the possibility that the market could move against us.
I doesn’t matter how perfect is your signal, it could trigger your order, and at the same minute, it could retrace back and stop you out.
That’s something that as traders need to learn to live with, and if you want to do this for a living, then you need to accept it.
Sometimes we need to go against common sense… Last week I opened a trade in the GBPCAD… And you have no idea about the amount of emails I received from traders who didnt agree with my trade…
One trader wrote something like this: “have you lost your mind? You are looking for more than 800 pips on this trade? you are going to get stopped out…”
Right now, that trade is 600+ pips.
The lesson to be learned here is that, if you want results, if you want to get consisten results, you just need to follow your system, and forget about everything else.
The GBPCAD was trading in a very clear bullish condition… One of the main principles of the way I trade is that, most of the time, the market moves from one long term level, to the other.
In this case, the GBPCAD broke through an important resistance level, and I knew it was likely to continue its way up… Once I got that information off the long term charts, I switch over to the short term charts and look for my entry.
For the short term charts, please refer to my previous post.
Where I’m trying to get traders, is that if you want to get consistent results on your trading, the only way to get there is by following your system.
There is no other way…
I think that the most important aspect of trading is being patient.
You need to wait for the right moment, even when that means that sometimes you’ll be in the sidelines for days or even weeks.
And once you see your opportunity, take it, don’t hesitate.
And talking about opportunities… here is a good one:
The USDCAD is trading in a very clear bullish condition… It recently broke through an important long term resistance level.
And as you already know, it is likely to continue its way up until it reaches the next LT level, which by the way, is at 1.3955…
Ok, now lets take a look at the short term charts:
There was a possibility to go long around the bottom of the range, but we are not talking about that one… the next possibility would be the breakout of the range.
Here are the details of my trade:
Entry stop order: 1.2973
I’d like to know your opinion about what I talked at the beginning of this article.
Did you take the GBPCAD signal?
What about the USDCAD? What do you think about it?
Please share your thoughts.