Alright, it’s not like I’m going to stop trading for ever, it’s just for the rest of the week.
If you were thinking about taking some days off your trading, this one would be the perfect week to do it.
And here is why:
I few days ago I got an email from a desperate trader, it was something like this:
“It doesn’t matter what indicator I use to trade the market, it always seems to move against me”
Think about it… What would you say to this trader?
My response was something like this:
Hello ________,
Look at it this way…
I was about to call it a week… but something came to my mind.
Sometimes putting things into perspective can help you see them from another angle. So I thought about an important question than can help you get better results…
Why do you trade?
Don’t answer because you want to make more money, because that’s not the correct answer.
Actually, you want to make more money because __________________
You need to fill in the line…
The reasons are different from trader to trader, some of them might be:
One of the best things a trader can do when planning his trade is to follow the market (instead of trying to guess where it is going).
So if you are trading the EURUSD or planning to trade it, here is what I think we should focus on:
There are many things that make trading a difficult task (this should read “trading successfully”, because anyone could trade, no previous experience is necessary, you just need to know how to click one simple buy or sell button). Just to name a few:
You need a sound strategy. You need to find and edge, you need a set a rules that identify low risk trade opportunities, you can use technical indicators, Fibonacci, Elliot waves, price action, or whatever fits you and makes you feel comfortable.
Discipline. Our main goal as traders is to trade consistently, we are not looking for unexpected or random gains (aka outguessing our system), and the only way to get them is by following our system to a 100%, period.
Later today the employment report of AUD will be released and tomorrow we have two interest rates announcements, for the EUR and GBP, but even when the EURAUD is related to both of them, I think we have enough time to let the market move on our favor, and then be able to move the SL close to the breakeven level so that we can leave our trade open during those announcements.
Here is the 30M chart:
As long as the EURAUD keeps trading below the ST resistance level 1.3264 I will be looking for short opportunities. Notice also it is trading below every important level on the short term charts.
Trade Safe!
Raul Lopez
Forex Course
The Swiss National Bank intervened again on its currency. According to Bloomberg, the SNB sent an email statement: “With immediate effect, it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs” and “is prepared to buy foreign currency in unlimited quantities.”
Guess where the EURCHF is currently trading? 1.2023 (from 1.1015 earlier this morning, that’s around 1000 pips)… So it worked, we’ll see if it only worked on the short term (like BOJ interventions) or it has a sustained effect (what they really want). Because we have something clear, as long as traders, investors, bankers all over the world continue seeing the CHF as a reserve currency (because of the debt crisis, etc), sooner or later the market will lead to renewed franc gains, that’s how the market works.
In the meanwhile, I will wait for clearer market conditions on all CHF crosses. And as soon as I have something, I’ll let you know.
Trade Safe!
Raul Lopez
Forex Course
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This is the list of what I think are the most important announcements this week. Remember every fundamental announcement (even the ones not included on this list) have the potential to have great impact in the market!
Monday 5th:
Tuesday 6th:
Wednesday 7th:
Thursday 8th:
Friday 9th:
Remember CAD and GBP are the currencies that react the most to their fundamental announcements.
Trade Safe!
Raul Lopez
Forex Training
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Hope you all had a great weekend! And good luck in the week ahead! How do you see the market this Monday? I thought it wasn’t that bad, there are a few opportunities plus plenty of currency pairs are trading in a short term range, I just need them to break the range before I start looking for trade opportunities.
One of the pairs that I’m currently watching is the EURCAD, from the long term charts, its clear that it is in a bearish condition, therefore short opportunities are in play! On the short term charts, it is trading in a short term range, but since we are already in a bearish condition, its ok to look for short opportunities, here is the short term range:
I’d like to see the EURCAD retracing back to the ST resistance level and if it forms a significant pattern with downward pressure, I’ll definitely go short.
One important note: It needs to trade below the ST resistance level in order to be considered bearish, if it breaks this level up, I’ll forget about looking for short opportunities.
Trade safe!
Raul Lopez
Forex Course
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It’s a difficult decision because you never know what could happen over the weekend, most important (unscheduled) announcements are released on Friday or Saturday, when the market are closed, this way the impact on the markets on Monday its much smaller than it would be if it was released on a weekday.
I guess it all depends on your trading style. There is no question, scalpers and short term traders should close every trade before the market close on Friday, it doesn’t matter if you are in a loss.
But longer term traders (such as swing traders, position traders, etc) sometimes need to give more time to the market to hit their take profit order, therefore leaving trades open over the weekend is a must.
So I have a rule, If I’m on green on any trade and able to move my SL at least to the breakeven level, I leave them open.
This is the case of a short I have on the CADCHF:
I have my TP order at 0.7297, around 700+ pips away from where it is currently trading (0.8011). No way I’m going to close it today, I’m just going to wait, move my SL close to the BE level and done, wait for Monday and see what happens.
Have a great weekend!
Raul Lopez
Forex Training
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