“I believe trading is far more an art than a science.” – Joe Ross

Hello:

Do you know now what it means to be impatient while trading?.. More than a few of us know what it means to take 3 steps forward, 2 steps back, followed by 2 steps forward, 3 steps back… The same is true of traders who are looking for instant gratification. These traders think that using high risk for fast profits, with the ‘Golden Goose’ software in their possession, is safe. No farmer gets from his field the fast food we expect when we put money into a vending machine. Harvests don’t ‘spring’ quickly from the ground. Only with time, work, and patience do we get what we’re looking for in trading – and more. Just as farmers learn how dependent they’re on weather they can’t control, so we need to see that the profit we’re looking for in trading is more than ‘attitude of choice.’ Lasting trading results don’t come quickly. It’s far better to begin to go for small but consistent profits as if you were stockpiling very small pieces of precious metal where there is a scarcity of the precious metal.

Below is the summary of some of my trading activities this week.

AUDUSD

Primary Trend: Bearish

This pair and other pairs experienced powerful movements this week – moving alternatively up and down, and very fast. I sold short last Friday.

Order: Sell

Entry date: August 5, 2011

Entry price: 1.0486

Stop loss: 1.0590

Trailing stop: 1.0336

Take profit: 1.0190

Exit date: August 8, 2011

Exit price: 1.0190

Status: Closed

Profit/loss: 296 pips

NZDUSD

Primary trend: Bearish

The Kiwi gave in to pressure from the Greenback. The price plummeted and a good entry was found. You certainly need a lot of experience to do this.

Order: Sell

Entry date: August 5, 2011

Entry price: 0.8369

Stop loss: 0.8469

Trailing stop: 0.8232

Take profit: 0.8074

Exit date: August 9, 2011

Exit price: 0.8074

Status: Closed

Profit/loss: 295 pips

EURCAD

Primary trend: Bullish

I went long upon an early generation of a ‘buy’ signal. The trade was successful, plus the bullish bias still holds.

Order: Buy

Entry date: August 5, 2011

Entry price: 1.3826

Stop loss: 1.3706

Trailing stop: 1.3976

Take profit: 1.4106

Exit date: August 8, 2011

Exit price: 1.4106

Status: Closed

Profit/loss: 280 pips

EURAUD

Primary trend: Bullish

This cross went bullish, then retraced. The retracement may be bought again. A market is never too high to buy despite the overbought indicator, and mayn’t be too cheap to sell.

Order: Buy

Entry date: August 5, 2011

Entry price: 1.3458

Stop loss: 1.3347

Trailing stop: 1.3608

Take profit: 1.3747

Exit date: August 8, 2011

Exit price: 1.3747

Status: Closed

Profit/loss: 289 pips

EURNZD

Primary trend: Bearish

The last trade on this cross was a flop. The price is just being quoted above the SMAs 200 and 50. The ADX 20 is at the level 25, showing some slowdown in the trend. The -DI is above the +DI.

Order: Buy

Entry date: August 9, 2011

Entry price: 1.7436

Stop loss: 1.7308

Trailing stop: N/A

Take profit: 2.0408

Exit date: August 9, 2011

Exit price: 1.7308

Status: Closed

Profit/loss: -126 pips

AUDJPY

Primary trend: Bearish

Like all the instruments mentioned in this article, the trade on the AUDJPY has been closed. When a price falls, it happens much faster than is the case with a price rise by the same amount.

Order: Sell

Entry date: August 1, 2011

Entry price: 84.65

Stop loss: 85.68

Trailing stop: 83.01

Take profit: 81.68

Exit date: August 5, 2011

Exit price: 83.01

Status: Closed

Profit/loss: 164 pips

Conclusion: One of the most frequent questions being asked, however, revolves around, “What direction do you think the AUDUSD would go from here?” My constant answer to that question is that traders don’t actually need to know where a direction would be before they can make money. The key to achieving this goal was mentioned in my past articles and would be explained more in my coming articles.

I’d like to conclude this article with more quotes from Joe Ross:

1. “When it comes to enduring success as a trader, the odds are against you. Every year, thousands of would-be traders try to make it, but few realize their goals. And even of those who make it, for many, success is short lived. Achieving and maintaining success is largely a matter of attitude. If you approach trading with the right mindset, you’ll increase your odds of success.”

2. “Many people limit themselves psychologically, but if you are willing to redefine and stretch your limits, and start thinking of yourself as a winner, you’ll get there and stay there.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

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