Hey traders… how is it going?
There are two possible things that we need to analyze when testing one system:
- Accuracy of the system
- The risk reward ratio
A lot of traders “try” to focus on the accuracy of the system. I get a bunch of emails asking me about how many times my system is right, etc.
But let me tell you one little secret traders… We have no control over the accuracy of the system, its given data.
As much as we dont like that statement… its true.
Hey traders! How is everything?
You know every morning I scan the markets and look for the currencies that have:
- Clear swings
- Clear S&R levels
- And a good profit potential
One of them is the EURCAD…
Here is my analysis…
EURCAD Long Term Analysis
The first thing that you should do is look at the daily or weekly chart and see if it is more likely to move up or down.
In this case, its clear that it is likely to continue its way down, see it for yourself:
Traders, hope everything is going well on your end…
I believe that the best piece of advice a trader could get is this:
Stop trading just for the sake of trading.
You need to trade the ones that have the most profit potential, the ones that have the clearest swings, the ones where you can easily identify support & resistance levels, those are the trades that are really worth it.
Those are the type of trades that makes the difference between a trader that is still struggling to get results and a trader that is on its way to consistency.
You don’t have to spend countless hours doing your analysis, just a few minutes (even seconds) is enough to determine whether its worth it to trade any instrument or not.
So please do yourself a favor, and stop trading the same currency pairs every day… find the ones you feel most comfortable with…
Does it makes sense?
Let me know your thought about this…
Anyway, I’ll feel definitely comfortable trading any of these currencies:
As I said yesterday traders… we always need to trade smart… specially this week with the FOMC rate statement tomorrow…
What do I mean by trading smart?
- Trade the currency pairs or instruments that have the greatest profit potential
- Trade only when you have a clear market condition
- Trade only when you have clear support and resistance levels
- See other things that you could get advantage of (like rollover)
Follow this guidelines and you’ll be on your way to consistent profits…
Now… remember you need to have at least 80 pips on your favor to hold your trades before tomorrows announcement, otherwise just close them alright?
So here is my plan to trade the currency pair with the most profit potential right now…
Hope your weekend was nice and relaxing because the market are going get a little crazy this week…
There are a ton of important announcements this week, but the most important of them all is the FOMC rate statement…
Will they rise the interest rate?
Nobody knows for sure (but Yellen and her team)… Some analysts say the will, some others say they will wait until December…
I tell the students of my Forex Course that we need to be extremely smart about the way we trade this week. We need to make sure to trade only the currency pairs that have the clearest market conditions… we need to make sure, both, the short term chart and long term charts have clear S&R levels, we need to make sure they have a good profit potential, among other things…
Anyway… lets talk about the EURUSD
Hey traders! Hope everything is going well!
You know I always try to find two things in the instruments I trade:
- A clear market condition
- and a good profit potential
When I talk about the market condition, I mean clear S&R levels, when we have both, clear short term and long term support and resistance levels, we know what the market is going and most importantly, what the market is likely to do.
And for obvious reasons, its very important to trade the instruments that have the best profit potential, you want to increase your risk-reward ratio on each trade. At the end, your over all risk reward ratio will determine how well you’ll do.
So if you look for those two things, you’ll get good results on the long run.
Here are my two possible trades:
GBPJPY Long Signal
The GBPJPY is trading in a very clear bullish condition… just look at the daily chart and you’ll see that was recently rejected from an important support level around 181.34…
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.