‘The big money is made by the sitting and the waiting – not the thinking. Wait until all the factors are in your favor before making the trade… Remember this: When you are doing nothing, those speculators who feel they must trade day in day out, are laying foundation for your next venture. You will reap benefits from their mistakes.” — Jesse Livermore

Hello:

This is an update on some of the movements on the markets and what we’re doing about them, plus our losses and profits. The analyses are based on daily charts – looking at the Big Picture. Our preferred leverage is 1:100 and our position size is 0.01 lots for each $1000. The risk on each trade is 2% in a situation of an initial stop. We use the Price Behavior rules for strategic decisions and our customized indicators for tactical entries. We open positions without predetermined exit target in mind, riding the trend for as long as it continues. The value of patience will forever be emphasized. As long as we stick to our rules and keep our risk low, we’re immune to fear. Jesse Livermore’s quote above is a real food for thought. You got to take control of the one thing you really can control on the markets – your own actions. When your emotions are intense, it’s difficult to think about the markets logically; but you have to.

AUDUSD

Primary trend: Bullish

A buy signal was formed on this pair last Wednesday but we missed it. Why? The economic news items were extremely scanty and we thought that the market would range: we were wrong! At the close of the market that day, the price had gone very far (a classical example of one of the drawbacks of taking economic items too seriously). We now want to buy a noteworthy pullback only. It looks like the market isn’t ready to retrace back to 0.8623 which is the pending entry price we’ve set. Nobody knows how long this bullish trend will last, so we’ve decided on a technique. This technique is also good if we’re ejected from the market prematurely, after which the trend continues, because it would enable us to benefit from a nice secondary signal. We’re now looking for an oversold condition on the RSI on the hourly chart. If the RSI goes below 30 while the same SMA is still suggesting bullish trend on both the hourly and the daily charts, we shall go long. The Stop will also be adjusted accordingly.

Order: Buy Limit

Entry date: July 8, 2010

Entry price: 0.8623

Initial stop: 0.8423

Current stop: N/A

Trailing stop: Not yet

Status: Pending

Profit/Loss: N/A

NZDUSD

Primary trend: Bullish

Our experience on this pair is quite similar to that of the AUDUSD. The northward momentum is now remarkable. Last year, this pair was in an uptrend for several months! Since it’s conspicuous that our preferred entry price of 0.6998 is far below the current price, we’ll also try to buy from the hourly oversold region when RSI