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.
In fact, I believe that it is the single most important aspect of trading, not only forex, but all other markets.
So we always need to be evolving, looking for signs about how the market is behaving, and how it is likely to behave in the following days/weeks to come.
We need to gather that information and use it to our advantage.
Let me show you for instance a few charts:
Do you believe in luck?
Sometimes I do… and some other times I dont…
There are moments in life where we might get lucky… but when it comes to trading, I think luck is defined differently.
To me, luck in trading is: trading the right instrument at the right time.
Lets say, I got lucky last Monday, because I was trading the GBPNZD and it reached the TP order in just 15 minutes.
So yes, I got lucky because I wasn’t expecting the GBPNZD to move that fast… but at the end, I was trading it because based on my analysis, I thought it was more likely to continue its way up.
And that’s what counts.
Hey Traders, how is it going?
How did you do yesterday?
Finally the markets started to move this summer, just when I was thinking about taking a week off… And I’m glad I didnt…
Anyway, I have a confession to make…
Two weeks ago I wrote about what I thought was the easiest trade ever… I took 140 pips on a EURNZD trade.
Or maybe at that time it was the easiest trade ever…
But take a look at this other trade…
How is your trading so far this week trader? What currency pairs are you trading?
You might think that one of my favorite currencies to trade is the GBP…
But that’s not correct…
I dont have “favorite” currency pairs, or at least not in the way you might be thinking…
My favorite currency pairs are those that have the clearest market conditions, the ones that have clear swings, clear S&R levels, those are the ones I like to trade every day.
So its an endless search for the pairs that have the clearest conditions, this is the only way I can guarantee that I will be trading with the odds on my favor.
And at the end, that’s what really matter, to go long when the market is more likely to move up, to go short when the market is more likely to continue its way down, and forget about trading it when you have no idea of what the market is likely to do.
Do that, over and over again, and you’ll get good results…
There is no secret trader, its all about being in the right side.
Ok, lets look at some of the GBP crosses now.
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.
As you already know, one of our main jobs as traders is to scan the markets and try to find the instruments that have two things:
Clear S&R levels, this way we know what the market is doing and most important, what it is likely to do, and
Good profit potential, well, this one is self explanatory.
If you keep trading those instruments, you’ll get results.
Of course, sometimes the market will move against you, but it doesn’t matter, because above all, you’ll be focusing in your trading as a whole, a group of trades, not individual trades.
So you only need to make sure to win more when the market goes on your favor… and that’s it!
Forget about the accuracy of the system.
Most profesional traders will tell you that 80% of their profits, come from 20% of their trades.
Do you agree with me?
Here is the signal.
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.
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.
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.
Hey Traders, how was your weekend?
As many of you already know, it was my birthday last Friday… I received a ton of emails and I really appreciate it traders…
And I want to thank you all for that!
Back to trading my friends…
You know what trading is all about right?
What’s it all about?
Its about trading the right instruments at the right time! As I said before, that’s what some traders call “luck”.
Fortunately for us there is a way of finding those traders over and over…
Now, that doesn’t mean that we are going to win all trades, its just about trading with the odds on your favor… if we keep doing the same thing over and over, at the end, we’ll get consistent results.
Ok, now lets take a look at some charts.
Hello traders, how is your week so far?
I have mentioned it before, and I will keep mentioning it because I think it could be the difference between a successful trader and a trader that will keep struggling to get good results.
Trading consistently is about choosing the right instruments to trade, and trading them at the right time.
That’s how some traders define as luck. But I’ve seen a pattern here, the more I do my analysis and make sure I trade at the right time, the luckier I get.
And it makes perfect sense, if you trade a currency pair because it has clear swings, clear levels, a good profit potential, most of the time, the market will move on your favor.
What we’ve got to do now is just repeat: Analyze – Determine which ones to trade – Trade
That’s it traders! That’s how the job is done!
But please don’t tell me that you are trading only one or two currencies, or that you are trading something because of the spread, or because someone else is trading it…
The only reason you should trade any instrument, its because it has both: a clear market condition and a good profit potential…
Does it make sense?
Ok, now here is what happened to my GBPCAD trade
How is everything traders?
Did you take advantage of my article yesterday about GBPCAD new signals? Please let me know.
You know something, we shouldn’t mind about the instruments we are trading…
There are only three things that we should consider when adding new instruments to your list:
- It should have a lot of volume
- It should have a clear market condition
- And a good profit potential
And you are good to go!
Just don’t adventure and trade exotic currency pairs or instruments alright? Make sure you are trading high volume instruments.
I think we need to keep adding instruments, you just need to make sure you get to know them before you actually taking those trades.
What kind of instruments should we consider adding: