Three Words to Remember When Trading the Forex Market....
Patience, patience, patience! The importance of patience in trading any market cannot be overstated. As Forex happens to by my market of choice, I will use today's trades on EURUSD as an example of how I first entered without patience, and later entered at a more appropriate point. Today was the first day of 2009, where I temporarily forgot my lessons and entered on emotion. Luckily I was still able to close the day in profit.
My first position was a Short trade taken on EURUSD when Price seemed to be showing a move down. However, trading based just on Price movement, is an absolute no no according to my trading rules. For me to have a valid entry I needed to wait for some sort of a retracement to a level of Resistance or Fib Level. I entered based on emotion and also only 20 pips away from the Daily low. Needless to say Price began to reverse and move steadily up. I had to use a larger stoploss than I ordinarily like to carry due to my inappropriate entry. Entries are so very crucial in Forex, because the proper entry allows you to use a much lower stop. Everyone will be wrong occassionally, even if all the rules are followed, but if you enter at a good point, you won't get hurt too bad.
Luckily I was able to salvage my day, but entering another Short position at an area of Resistance. Price did actually move up through the Resistance, but never approached my stop loss, as I had entered at a "smart" price point. Since EURUSD was trading in a range today I closed my positions when I was +11 pips between the two. My "smart" trade saved me from a losing day. However, if I had used PATIENCE and only entered on the 2nd position I would have easily netted 33 pips, and possibly more, because I could have let half the position try to run instead of covering the pips I was still down on the original trade.
Trade smart, be patient, make more money! Check back soon for my new Forex Trading Group, where you will be able to take my signals live, use my EA's, and learn to trade for yourself!
My first position was a Short trade taken on EURUSD when Price seemed to be showing a move down. However, trading based just on Price movement, is an absolute no no according to my trading rules. For me to have a valid entry I needed to wait for some sort of a retracement to a level of Resistance or Fib Level. I entered based on emotion and also only 20 pips away from the Daily low. Needless to say Price began to reverse and move steadily up. I had to use a larger stoploss than I ordinarily like to carry due to my inappropriate entry. Entries are so very crucial in Forex, because the proper entry allows you to use a much lower stop. Everyone will be wrong occassionally, even if all the rules are followed, but if you enter at a good point, you won't get hurt too bad.
Luckily I was able to salvage my day, but entering another Short position at an area of Resistance. Price did actually move up through the Resistance, but never approached my stop loss, as I had entered at a "smart" price point. Since EURUSD was trading in a range today I closed my positions when I was +11 pips between the two. My "smart" trade saved me from a losing day. However, if I had used PATIENCE and only entered on the 2nd position I would have easily netted 33 pips, and possibly more, because I could have let half the position try to run instead of covering the pips I was still down on the original trade.
Trade smart, be patient, make more money! Check back soon for my new Forex Trading Group, where you will be able to take my signals live, use my EA's, and learn to trade for yourself!
Labels: eurusd forex, forex managed accounts, forex signal service, forex trading group, trading forex
posted by TopForexTrader at
12:07 PM
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