“You can’t know exactly what will happen, but as long as you have properly managed risk, a losing trade isn’t fatal.” – Joe Ross



This is an update on some of the movements on the markets and what I’m doing about them, plus my losses and profits. The analyses are based on 4-hour charts, looking at the trend. My preferred leverage is 1:100 and my position size is 0.01 lots for each $2000. The risk per trade stands at 1%. The Stops are my life insurance policy. I use the Price Behavior rules for strategic decisions and customized indicators for tactical entries. I believe that a ‘buy’ signal that fails is a ‘sell’ signal; and a ‘sell’ signal that fails is a ‘buy’ signal. I open primary positions with a risk-to-reward of 1:3, riding the trend until the target is hit or I’m stopped out. The value of patience will forever be emphasized. As long as I stick to my rules and keep my risk low, I’m immune to fear.

In addition, the competitive financial markets system produces not only winners who prosper but also losers who suffer. Traders survive and prosper only when they take trading ideas that work serious. Could the traders that are prosperous be encouraged to help those who are still suffering in the markets?

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



Primary Trend: Bearish

Bullish attempts have been constantly rejected on this pair. There’s a strong resistance at 1.0750, which must be broken sharply for the upward trend to resume. If not, the downward trend would continue.

Order: Sell

Entry date: May 20, 2011

Entry price: 1.0662

Stop loss: 1.0765

Trailing stop: 1.0662

Take profit: 1.0065

Exit date: May 27, 2011

Exit price: 1.0662

Status: Closed

Profit/loss: 0 pips (breakeven)



Primary trend: Bullish

The Kiwi is very strong at the present, and I’ve a long trade on it. There’s a retracement which may be a new opportunity for buyers. However, if the retracement proves to be the beginning of a new trend, then I’ll close the present position with a small loss, looking for a way to go short.  It’s that simple: if the price is rising, go long. If the price is falling, and the trend is bearish, then sell and sell short.

Order: Buy

Entry date: May 30, 2011

Entry price: 0.8156

Stop loss: 0.8058

Trailing stop: N/A

Take profit: 0.8758

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 9 pips




Primary trend: Bullish

The resistance at 1.3900 was challenged successfully – something that has resulted in a strong northward move. This upward move has resulted in a visible bullish trend. The trend is still early enough to be taken advantage of. I have a long trade on the cross.

Order: Buy

Entry date: June 3, 2011

Entry price: 1.4158

Stop loss: 1.4058

Trailing stop: 1.4158

Take profit: 1.4747

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 147 pips



Primary trend: Bearish

The trend on this cross still remains bearish, though the price has shot up. My last trade on it was stopped out with a good profit. If the present scenario continues, the primary trend may turn bearish. This depends on some fundamental factors; things that are interlaced.



Primary trend: Bearish

The price is trying to trudge to the upside, but this looks limited. If the Euro fails to maintain the presently precarious supremacy, there’ll be sharp sell-off on this instrument. Currently, the price is quoted above the SMA50, but still below the SMA 200.  The ADX 20 level is above 30. The -DI is below the +DI, indicating a bullish pressure.



Primary trend: Bearish

The price has been caught in what looks like a kind of zigzag movements. The price would threaten to rise, only for it to fall.  The market seems quiet now, considering the coming NFP release. When this kind of release is expected, the markets are usually in graveyard silence ahead of the news.

Order: Sell

Entry date: May 19, 2011

Entry price: 86.91

Stop loss: 87.95

Trailing stop: 86.91

Take profit: 80.95

Exit date: N/A

Exit price: N/A

Status: Open

Profit/loss: 67 pips


Conclusion: Even though trading ideas that work sound simple, putting them into practice and benefiting from them is quite another matter. Traders could spare themselves many financial woes if only they’d endeavor to follow these ideas.

This update is ended with a quote from Dr. Woody Johnson:

“If you choose to avoid all pain and discomfort, and remain in the comfort zone, you will never experience growth. It cannot happen in the comfort zone.”

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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