‘Competence is a way station to expertise. We first become competent at a performance; only with dedicated effort does that competence flower into expertise. Competence is doing things conventionally well; expertise is doing things unusually well.” — Dr. Brett N. Steenbarger

Hello:

This is an update of the major movements on the markets and what we’re doing about them, plus our losses and profits. Our position size is 0.01 lots for each $1000. The risk on each trade is 2% in a situation of an optional stop. Based on my Sunday article in which I expatiated on a Trend Setter strategy (I told you I’d take you thru an exiting journey in the world of some funds managers), the analyses below are taken from daily charts. It’s the Big Picture. This ensures that we’re no longer subject to those confusing noises on smaller timeframes, since we’re taking trades only in the directions of major trends. This strategy gives a signal once a trend is established at the expense of delayed entry. The bright side is that there’s less chance of being wrong. When one uses indicators or/and timeframes that can spot a trend very quickly one can experience a lot of fake-outs, for one can get bogus signals which can be misleading.

AUDUSD

Primary trend: Bullish

A strong bearish dive began on May 4, 2010 and we entered short the following day at 0.9087. This pair reached a low of 0.8066 on May 25, followed by an exit signal on June 11. We closed a profit of over 600 pips. On the following Monday we entered long (though seemingly late). It’s not advisable to use overbought and oversold indicators when a market is in a trending mode. The high probability trade for now is to go long. AUDUSD, NZDUSD and AUDJPY all have double bottom formations on daily charts.

Order: Buy

Entry date: June 14, 2010

Entry price: 0.8651

Stop: 0.8451 (optional)

Trailing stop: Not yet

Status: Open

Profit/Loss: -7 pips

NZDUSD

Primary trend: Bullish

The analysis on the AUDUSD is almost applicable to this pair. From May 14 – June 11, 2010 we were on a short position, closing a profit of over 300 pips. Bearish attempts have often been rejected since May 21. We’re now on a buy signal.

Order: Buy

Entry date: June 14, 2010

Entry price: 0.7005

Stop: 0.6805 (optional)

Trailing stop: Not yet

Status: Open

Profit/Loss: -54 pips

EURCAD

Primary trend: Bearish

We’ve been on a nice bearish ride since December 9, 2009 and we’ve not closed the position because our strategy still suggests the strength of the bears. False bullish signals have constantly been filtered. We have an open profit of approximately 3000 pips. We’ll ride the trend until we get a confirmed buy signal, after which the northwards journey would have a steaming bullish momentum.

Order: Sell

Entry date: December 9, 2009

Entry price: 1.5527

Stop: 1.5727 (optional)

Trailing stop: 1500-pip trailing stop applied

Status: Open

Profit/Loss: 2876 pips

EURAUD

Primary trend: Bearish

Since February 12 till date, we have only 3 signals on this pair. The first signal was bearish with a profit of over 1200 pips. Followed by a bullish signal with over 300 pips in 2 days. Our last trade was a ‘sell’ signal (details below) in which our trailing stop was hit. The bias is still bearish, but we’ll wait for our strategy and price actions to confirm a potentially new signal before taking a position.

Order: Sell

Entry date: June 9, 2010

Entry price: 1.4487

Stop: 1.4687 (optional)

Trailing stop: 200-pip trailing stop applied

Status: Closed

Exit date: June 14, 2010

Exit price: 1.4260

Profit/Loss: 217 pips

EURNZD

Primary trend: Bearish

Our penultimate trade on this pair gave us about 1500-pip profit in about 42 days. There was another sell signal on June 9, 2010 which went very well in our favor. Our trailing stop was hit during some bullish reversal. We’re waiting for the next clean signal on this pair.

Order: Sell

Entry date: June 9, 2010

Entry price: 1.7957

Stop: 1.8157 (optional)

Trailing stop: 200-pip trailing stop applied

Status: Closed

Exit date: June 15, 2010

Exit price: 1.7709

Profit/Loss: 240 pips

AUDJPY

Primary trend: Bullish

What you mayn’t be aware of is that this pair is easily predictable with over 70% accuracy. We entered a ‘buy’ signal, and we’d hold onto the present bullish bias until a new development arises. Presently all our technical evidence points to upward movement.

Order: Buy

Entry date: June 14, 2010

Entry price: 79.41

Stop: 77.41 (optional)

Trailing stop: Not yet

Status: Open

Profit/Loss: -40 pips

Conclusion: My Itu Global is still active and still being used. The analyses on this Trend Setter are introduced so that you’ll know the power of big trade swings. A renowned systems developer once told me that he liked lower timeframes because he thought bigger timeframes are too slow. Of course all trading strategies that make you survive the markets consistently are good. But what’s the point in placing 5000 trades last year and still ending the year in deficit? Honestly that kind of annual balance is dismal. If you placed about 50 trades last year and you ended in surplus, then you should be happy. That’s what we need. Patience is one of the virtues you’d rather cultivate if you want to be a profitable trader. If last year was ended in deficit, then what was the advantage of being in a hurry then?

While trading isn’t easy (it’s a criminal behavior to tell novices that trading is easy), with dedicated effort you can become a successful trader. I’d like to conclude with this quote:

“After all, no trader will survive without a degree of flexibility.’’ — Peter Soodt

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

NB: There is risk of loss in trading, but it is possible to be a successful trader.

©2010 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

.