Look traders, the moment you think you have finally figured out how the market works, it changes its behavior…
And that’s the reason we always need to be adapting to the market conditions.
Always.
In fact, I believe that it is the single most important aspect of trading, not only forex, but all other markets.
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…
Remember last week I told you this week was going to be interesting week? Well, at least it started that way!
There are a few currency pairs that are trading in very clear conditions… And you know what we need to do once we have a clear currency pair right?
Just find an excuse to go either short or long.
We just need to find the right currency pairs to trade. As I’ve said before, find the right pairs to trade, and you’ll have 80% of the job done!
Dont worry too much about your entry system, etc.
Anyway, today there are plenty of currency pairs trading in a clear market condition and one of them is the EURNZD.
You know, there are periods of instability, periods in which its very complicated to trade, or to find low risk trade opportunities…
There is no doubt about it!
But there are also periods, in which trading seems so easy… we just need to find them.
For instance, one of the currency pairs that I’ve been trading lately is the GBPAUD.
Take a look at its long term chart:
I know you are going to ask me, what do you mean by easy?
Well, from my point of view, the easiest currency pair to trade is always the clearest currency pair.
You see, when the market its clear, its way easier to trade because you know what it is likely to do, if its got clear S&R levels, you know at what levels the market is likely to reverse, etc.
Before trading any currency pair, you need to ask yourself 3 questions:
This one would be my 3rd delivery… What do you think so far about my analyses and its format? I’ll appreciate your feedback!
If there is one thing that I’d lie you to learn from my analyses is that there is nothing better than adapting to the market condition.
Sometimes it might seem easier to try to guess what the market is likely to do, but its far better to wait for the market to make its first move, only then you make your move.
And if there was a second thing that I’d like you to get is that sometimes the market (a currency pair) is not tradable.
Forget about choosing to trade a currency pairs because of its spread, or because you feel more comfortable taking longs (or shorts), or because you have an hunch about that currency pair.