Lets turn life’s lemons into lemonade; shall we?! Steph and I just got under-way to put in a 10 mile run on Saturday and 2 blocks from home I stepped off the curb and unknowingly sunk my foot in a hole and rolled my ankle. Finding myself flat on my face as my water bottle and hands skidded across the street my thought was; “Down goes Frazier”. We thought we would spare you the actual photo of my foot but if you are a gapers block kind of person in need of the gory details, feel free… As a bonus if you dare, we also left a chart of the EURJPY on 070611 paralleling the bearish outcome for my foot on 070311. I am now calling it the “Sprained Ankle Pattern”! Made some money on this trade!
My football day ankle sprains shot that memorable pain like a lightening bolt through my foot and inside my brain as I hobbled to the sidewalk. Even the most resilient consistent performers go through a bump in the road; well in my case a hole in the road leaving a nice colored purple foot and ankle. It kind of reminded me of a chalk outline and my version of CSI-LA. Its been a long time since I had to alter my work-out schedule. Push-ups and sit-ups are back in style while my foot heals, but I have soon found myself back on the LA road-ways with walk-runs the last couple of days. You just cant keep me sitting still.
I bring this up because when you experience an obstacle a few key things happen to not only teach you a lesson but also help you get better at handling it the next time something slows you down. I knew just what to do from my football days with buckets of ice water and foot soaks and anti-inflammatory ointments to help the swelling. This knowledge has gotten me back on my feet and doing walk runs and if all goes well back to running again all within a week.
It is not much different as to how I learned to be flexible with the financial markets. The government about 10 years ago pulled the rug from under my feet. They stopped issuing 30 Year Bonds one day (the market I traded at the time). At that very moment I should have been able to shift to the next hot like-minded market of interest, which at the time would have been the 10 Year Note. Initially I didn’t budge as fear of change and fixing what I thought wasn’t broke held me in place. The inner chatter in my head kept talking me into staying; “Even if they stop issuing the Long Bond, they still have open interest going well out into my retirement years. Trade just wasn’t going to stop and I was doing great!
But I found later that the world wasn’t telling me to leave the 30 Years just then but it was actually telling me to begin preparing to trade other markets. Money and popularity of markets shifts constantly and flows to bonds or to stocks or to currencies or to gold or even to the crazy oil market. Well when I left the trading floor near the end of 2004 to trade 100% in an office on the computer I found the 30 Year Bonds only moving in tight 4 tick range. Learning how to move from market to market when I was getting the sign would have come in handy at this point. There was no movement in the 30 Years back then and as a trader you need price movement to gain opportunity. I’m not saying at the time that the 10 year note would have been a better choice as it wasn’t moving either, but just the mere sign that what the world was telling me earlier was to be prepared to move from market to market. Well now I had no choice; if I wanted to survive and thrive in this business it was time to be a true trader, which is one who can take their game to any market. I did the work and I did just that.
Well fast forward to present tense and in this case I was prepared on both accounts. Experience taught me to treat my ankle to ensure a speedy recovery just as trading other markets got me in on the right side of the “Sprained Ankle Pattern”. You will see by clicking on the link that the EURJPY market fell hard and limped along with an appropriate retrace to short (sell) it. If you missed the first wave, price action gave you another chance to short just below the original ankle formation as prices toppled to new lows. In our book it was equivalent to a 5 rule trade anyway but the real story was the fact that these days I now trade markets that weren’t even close to being on my radar in my early days. I didn’t even care what the EURJPY was doing back then. Yeah, I knew it existed and I watched currencies from time to time to help my bond trading decisions but trading something other than 30 Years was not in my vocabulary. Well, now it pays dividends to be able to use the computer and the internet for what it was designed to do, which is to help you shop the best market of the time (one that is moving) with ease and seize the opportunity. Remember that pain is temporary but learning from it and acting the next time with experience will pay life long dividends!
Whatever you decide to try; you can’t win, if you don’t play!! Prosperity is at your fingertips! All you have to do is grab it!!
Trading Commodity Futures and Foreign Currency (Forex) contracts may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your FCM. The material on this website is intended for educational purposes only.
© 2011 RDS Trader, LLC. Have a specific topic you want to read an article on, email us your requests! email@example.com
WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR ON YOUR WEBSITE? You can, as long as you do not alter the article in anyway and include a credit that reads: Financial Experts and Mentors Mike and Stephanie Radkay publish RDS Trader E-newsletter. If you are ready to ‘Take back your power, Invest with confidence and Protect your assets’ get your free tips now at www.rdstrader.com
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.