“For every buyer, there’s usually a seller. For every trade you make, predicting that the market will go up, there’s usually another person predicting it will go down.”


I previously had it in mind to post an article about FEAR – the trader’s most dangerous enemy, before I remembered it’s high time I posted the summary of my monthly long-term strategy signals. The article about fear may be posted next Friday. My long-term trading signals are based on my weekly trading analyses as contained in my articles. GBPJPY/USDCAD hedging strategy and other shorter-term strategies remain my secrets, and a benefit to my subscribers and my trainees.

1. Instrument: EURAUD

Order: Sell

Entry date: November 11, 2010

Entry price: 1.3570

Initial stop: 1.3670

Current stop: 1.3570

Exit price: N/A

Exit date: N/A

Status: Open

Profit/loss: 65 pips

Percentage growth: 0.6%

2. Instrument: AUDJPY

Order: Sell Limit

Entry date: October 19, 2010

Entry price: 80.50

Initial stop: 82.00

Current stop: 79.50

Exit price: 79.50

Exit date: November 1, 2010

Status: Closed

Profit/loss: 100 pips

Percentage growth: 1%

3. Instrument: AUDUSD

Order: Sell

Entry date: November 11, 2010

Entry price: 0.9817

Initial stop: 0.9917

Current stop: 0.9717

Exit price: 0.9717

Exit date: December 2, 2010

Status: Closed

Profit/loss: 100 pips

Percentage growth: 1%

4. Instrument: AUDUSD

Order: Buy

Entry date: December 1, 2010

Entry price: 0.9699

Initial stop: 0.9599

Current stop: 0.9599

Exit price: N/A

Exit date: N/A

Status: Open

Profit/loss: 90 pips

Percentage growth: 0.9%

5. Instrument: NZDUSD

Order: Sell limit

Entry date: November 23, 2010

Entry price: 0.7735

Initial stop: 0.7835

Current stop: N/A

Exit price: N/A

Exit date: N/A

Status: Cancelled

Profit/loss: 0 pips

Percentage growth: N/A

6. Instrument: EURCAD

Order: Buy Limit

Entry date: September 9, 2010

Entry price: 1.3100

Initial stop: 1.2950

Current stop: 1.3819

Exit price: 1.3975

Exit date: November 8, 2010

Status: Closed

Profit/loss: 875 pips

Percentage growth: 8.7%

Summary: I’d like to conclude by calling your attention to the inherent pitfalls in taking economic news too seriously. Fundamental analysts seem to have reasons for whatever the markets do. If the Euro becomes very weak, they’ll have reasons for that. If the Euro becomes suddenly strong, they’ll also pinpoint reasons for the strength. But a technical law says that whatever goes up must come down, since there’s no such thing as everlasting trend.

No matter what the market does, you’ll retain your socks if you can cut your losses and run your profits. Why should you be giving yourself sleepless nights when you don’t have 100% assurance of the effect of any news items? I’ve come across hugely successful hedge funds managers who don’t even care about any news items. One of their secrets lies in effective risk control plans. This is one reason why I seldom mention economic issues in my analyses (though I’m always aware of them), since I know full well that my survivability has nothing to do with what’s happening anywhere. It’s pretty possible to know about economic issues and still find trading very hard. Successful traders make money whatever the markets do, so why the headache about any news? According to Sam Evan, trading Forex data can certainly be a fool’s game as the market reactions to the news were often erratic and unpredictable in the majority of cases.  One more quote from him is below:

“I do trade the news of the Fundamentals, but instead I choose to trust in the Technical charts and wrap my strategy around the simple laws of Supply and Demand governing dynamics. Using this approach, my life has been far easier…. Trying to read between the lines of major news releases and economic indicators is pretty much an impossible job, as data can often skew the price violently and take us out of a trade with huge slippage for a loss… I advise my students in the very same way. I like to keep things simple across the board and allow others to make things complicated. News is just a part of every day market price action; nothing more, nothing less. The edge truly lies in the objective analysis of price and that will never change.” – Sam Evans

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal

And my past articles are also available at: www.ituglobalforex.blogspot.com

Yahoo! Messenger ID: saazalmu

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

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