“The best traders focus on the process of trading well and let the PL (profits and losses) take care of themselves.” – Steve Ward

Hello:

Bad fundamental figures could push down a market price to a level where buyers may buy a pullback if the major trend is bullish and good fundamental figures could raise the market price to a level where sellers may sell a rally if the major trend is bearish. The beginning of a new trend offers the lowest risk and highest reward opportunity to enter that trend. Trading against a trend, or counter-trend trading, is an act of standing in front of market flow which is a higher risk trading style. Trading results are generally improved by setting a profit target for each position. The benefit of a predetermined profit target is to enable speculators to close a position before the overall trend changes. Also, it’s great to add a stop to each position in order to get out of fast reversals, which might happen anytime in the week or month.

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

AUDUSD

Primary Trend: Bearish

All bullish attempts on this pair have been clearly unsuccessful. They even provided sellers with clean shorting opportunities. My short position has been positive and the risk on it has been removed. It’s very hard to see a strong Aussie right now.

Order: Sell

Entry date: June 16, 2011

Entry price: 1.0560

Stop loss: 1.0650

Trailing stop: 1.0560

Take profit: 0.9965

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 76 pips

NZDUSD

Primary trend: Bullish

The long-term uptrend on this pair is still intact in spite of the threats against it. The price pullbacks have often led to new bullish waves. I got a long position on this pair. If there are not major market-moving events, the price can enter a new consolidation phase which would be characterized by small candles. Small candles represent indecision in the market whereas large ones represent great moves.

Order: Buy

Entry date: June 21, 2011

Entry price: 0.8118

Stop loss: 0.8015

Trailing stop: N/A

Take profit: 0.8715

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: -19 pips

EURCAD

Primary trend: Bullish

I’ve no open trade on this instrument yet. The serious threat to the major bullish trend (which started last week), has continued. In fact, the price is diving noticeably. If the price level at 1.3840 is broken downwards at last, the bearish pressure may continue and the primary trend would turn bearish.

EURAUD

Primary trend: Bullish

Here, the fact that the Euro is weaker than the AUD is conspicuous. Nevertheless, the bullish bias still holds. If the present scenario continues, the northbound outlook may be violated. This is something that may happen in the nearest future, and it’d be wise to use as little risk as possible when trading this cross.

EURNZD

Primary trend: Bearish

Since I was stopped out with a profit, I’ve not traded this instrument. The trend looks downwards – making it sensible to sell rallies. Currently, the price is quoted below the SMA50 and SMA 200, confirming the bearish mode. The ADX 20 level is edging towards 30, suggesting that sellers may become more aggressive soon. The -DI is clearly above the +DI. This could be a nice selling opportunity for me.

AUDJPY

Primary trend: Bearish

Another trade of mine on this market is presently running. The primary trend has always been bearish, going down and down, and rendering nearest support levels ineffectual. There’s a great probability that this would hold. Fundamental figures would matter a lot in supporting this outlook as price continues its never ending quest to find equilibrium.

Order: Sell

Entry date: June 16, 2011

Entry price: 85.47

Stop loss: 86.47

Trailing stop: 85.47

Take profit: 79.51

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 102 pips

Conclusion: Traders must work on themselves if they want better trading results. Psychologically, those who aren’t disciplined would continue to sabotage their own efforts, even if they possess great trading systems or subscribe to great signals services. Many serious and honest-hearted traders who worked on themselves made it in the end: though the early years were difficult, the markets rewarded their efforts.

The article is ended with a quote from Dr. Van Tharp:

“In the beginning I lost a lot of money and when I had done that a second time. I concluded it must be me… At some point, I realized that nothing would change until I changed…”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

.