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…
Hey traders, how is everything?
You know, tomorrow could be a volatile day… the FOMC statement is due tomorrow and it has proven to be the most important fundamental release, at least the one that has the most impact in the market.
So you have to be careful, because the market will go crazy if we get something different from what traders/investors expect.
I follow a simple rule, if my trade doesn’t have more than 80 pips on my favor, I just close it.
That simple!
You don’t have to break your mind creating complex rules.
Retracement or Breakout Signals?
Which one is better?
The truth is that both of them work… each one of them have their own advantages.
For instance…
You could set your order on breakout signals and go away… so if you don’t have much time, just use breakout orders.
Retracement signals tend to have a tighter SL.
So I like both of them, I dont have a special preference… As long as the signal is in the direction of the market condition, I take them…
What’s your take?
Ok, now lets take a look at my signal… by the way, it is a retracement signal.
I know most of you like to trade the EURUSD, mostly because it is usually the currency pair with the tightest spread…
I know, I like that too…
But you also know that the USDCHF is negatively correlated to the EURUSD… that means that when the EURUSD goes up, the USDCHF tends to go down and viceversa.
And if you have been following my analyses, you also know that our job as traders is to find the currency pairs that have the clearest market conditions…
And let me tell you something, right now, the USDCHF is way clearer than the EURUSD…
So if you asked me… which one would you trade right now? I’d definitely go for the USDCHF… without a doubt!
So here is what I think about the USDCHF