There is one famous quote from Warren Buffet… (You know who is Warren Buffet right? He is one of the greatest all time investors).
When you get a chance, read about him, his methods, etc.
Anyway, back to the quote…
“Risk comes from not knowing what you are doing”
Remember that quote?
Well let me tell you, it makes a lot of sense…
There is a type of risk that we cant avoid, for instance, you take a trade in XAUUSD (gold) and suddenly scientists find a way to transform any metal into gold… did you see that coming? Of course not, its impossible…
That’s the type of risk that we cant avoid…
As traders, we have to learn to deal with that.
But there are other risks that we can avoid… and I think most of them come, as Warrant Buffet says, from not knowing what we are doing…
There is something I always do when I’m getting ready to trade… it is to try to understand what the market is doing right now.
When you understand what the market is doing (call ir forex, stocks, commodities, indices, etc), you also know what the market is likely to do… And guess what? If you know what the market is likely to do, you can start looking for trade opportunities.
If the market is likely to continue its way up, then you look for long opportunities, if you think its likely to continue its way down, then you look for long opportunities.
But there are other times, that you have absolutely no idea of what the market is likely to do, when that happens, just forget about trading it… look, there are thousands of instruments that you can trade, why not focus on those where you understand what the market is likely to do?
Make it simple traders. Dont try to complicate your trading.
Before taking any trade, see if you have clear levels, clear swings, and trade it only if both answers are yes.
Its not me saying this, its Warren Buffet…
Does it make sense traders?
Lets talk a little about the market now.
Could this be the easiest 140 pips ever?
Yesterday we decided to set an order to go long in the EURNZD.
Here we have the trade details:
Entry order: 1.6827
This order got triggered, and it has moved up since then… Now it is trading at 1.6920, 47 pips away from the TP order…
I keep asking myself… could this be the easiest 140 pips ever?
I’m not taking about random rewards… or a trade that moved pretty fast because a news announcement. This is a system trade…
I’m probably talking too soon here, because the market could turin around right now and stop me out…
I better wait!
Two trades in the USDCHF
The USDCHF has been trading in a ver clear bullish condition since last week… its been moving slowly, but reaching higher levels…
So we took a trade earlier this morning, and we have another order resting above the short term range, in case the USDCHF breaks through the upper resistance level.
My first trade was:
And this is my pending order:
Entry stop order: 0.9904
Breakout signal in the GBPNZD
There is also another possibility in the GBPNZD.
It is trading in a very clear bullish condition, I’ve been looking for trade opportunities here, but the short term levels weren’t that clear…
That’s the reason I haven’t been able to take a trade here…
But… now that we have two rejections from the short term resistance level, we might find an opportunity to go long…
So here is my order details:
Entry stop order: 2.4040
What do you think about Warren Buffet quote?
Do you agree with my about the easiest 140 pips ever?
What are your thoughts about the USDCHF and GBPNZD? Are you going to trade them?
Share your thoughts.