Last week I made a multiple time frame analysis on the USDCAD. All charts were pointing up and I thought it was a good idea to look for long opportunities.
Guess what? Since then, the USDCAD has been going up :)
Last week I got a few emails asking me if I’d close my trade over the weekend and last Fridays CAD news announcements (I think it was the CPI)…
My answer was no. I’ve talked about it in the last few weeks, how I’m going to handle news announcements this year. In essence its like this:
I’ve noticed that when there is an important fundamental announcement, most of the time the market will move in the direction of the market condition. I always trade in the direction of the market condition, so if I have enough pips to set my SL to the break even level, I’ll always let my trades run, even during the most important ones.
GBPUSD Analysis, swing trading, USCAD Analysis, USDJPY Analysis
Here are a few of the currency pairs I’m currently monitoring.
On some of them I’m already trading/looking for a trade opportunity, while on others, I need to wait for the market to do “something” before I start looking for a trade opportunity.
But there is something in common on all of them: CLARITY.
Clarity trumps everything in forex.
What do I mean by clarity?
It’s how clear the analysis of a currency pair is. Is it clear that the market will move up? or down? Or I have absolutely no idea of what the market is going to do?
Of course, if there is no clarity, there is no point on trading that particular currency pair, you have no idea of where it is heading right?
Clarity is so important when trading the forex market, that it can help you get good results even when you don’t have a good entry system, patience, etc.
AUDJPY Analysis, EURAUD analysis, forex, GBPUSD Analysis, USDCHF analysis
Yesterday I was doing a lie webinar at FxStreet and one of the assistants reminded me of something, which could be the essence of trading, he said something like this:
Trading is about finding the right opportunity, with the lowest amount of risk.
He is totally right!
About Risk and Trade Opportunities
We have hundreds of currency pairs, thousands of opportunities each day. So our job as traders is to fin the right one or the right ones to trade each day.
Now, we need to understand something though.
There will alway be risk. It is something we need to live with as traders. There is no such thing as a risk free trade.
So embrace risk, learn to live with it… I guarantee that once you feel comfortable with it, comfortable about the fact that each trade has the possibility to go against you, you ‘ll begin to see more and clearer trade opportunities. As I said, I guarantee it.
GBPUSD Analysis, opportunities, risk
It was difficult to trade the last upswing in the GBPUSD, mainly because we didn’t have a clear resistance level where I’d feel comfortable with.
But now, it seems like everything is clear enough, take a look at the daily chart and you’ll see that it is being rejected from the same level, 2 rejections = 1 resistance level :D
Here is the short term chart:
forex, GBPUSD Analysis, short signals