“I don’t mind having a bad week, or even a few bad weeks. What’s important to me is if I can look at substantial profits at the end of the year! And right now it looks like I will be able to do so again at the end of this year, even though 2011 didn’t start out that gloriously.” – Marco Mayer

Hello:

Successful trading rules are a paradox. A risk control rule says: Risk less to make more or risk more to make less. The fact that less is more will always be true in trading. For example, less intricate and easier speculation methods tend to produce more agreeable and far more decent returns (not account doubling, which is repugnant to disciplined and experienced risk managers). Your goal is to metamorphose into a proficient and adept speculator. A proficient and adept speculator acknowledges that trading oughtn’t to take all your time. Trading should be a factor that facilitates your ability to have the time and opportunity to live a fulfilling life and engage in other activities you enjoy doing.

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

AUDUSD

Primary Trend: Bearish

Having opened with a vivid gap this week, this pair has fallen by about 500 pips. I was able to gain 200 pips from this bearish move. The next line of action would be to sell on rally.

NZDUSD

Primary trend: Bearish

Traders need to bear it in mind that we’re just seeing the beginning of another bear markets in Forex. Price is the leading indicator and it should act in helping traders know the next thing to do, which is the assumption of short trades in this context. In the world of trading, price is king.

AUDNZD

Primary trend: Bearish

This cross is a kind of ranging right now. But a closer look reveals that the Aussie is still stronger than the Kiwi, though with limited domination. The price must break the level at 1.2600 – which is a very strong resistance – before any dependable bullish movement can be seen

EURCAD

Primary trend: Bearish

Also starting with a gap this week, this cross has gone up by approximately 500 pips. There’s a threat to the longer-term bearish outlook. The next plan is buy to a pullback, using our predefined rules. The trading rules mentioned here provide ready-made answers to what we should do in terms of trading orders we should place.

EURNZD

Primary trend: Bearish

Here too, there’s an extremely grave threat to the bearish trend. If there’s a continuation of the present bullish breakout, then the weak market would be rendered invalid. The price on this cross is above the SMA 200, while the SMA 50 is still below the SMA 200. The ADX 20 is moving above the level 23, just going to the level 30. +DI has just moved above –DI, indicating the beginning of a protracted northward move. The Kiwi can’t stand this!

GBPCHF

Primary trend: Bullish

The bullish movement on this instrument is still intact, though it’s getting tricky to find a suitable entry price. One way of handling this is to use both Buy Stop and Sell Stop orders in an equilibrium zone, so that I can catch the next price breakout. With this, I try to keep it simple and just wait for setups to unfold.

Conclusion: How do you define success in trading? Ed Ponsi has an interesting answer to give. His answer and other quotes conclude the articles below. They point out the big difference between the disciplined trader’s goals and mindset and the gambler’s goals and mindset.

1. “Well, if you are making money, you are ahead of the majority of traders, but anyone can make money in the short run. I would define success in trading as consistency. A trader who can make just 2% to 3% per month, every month, without taking inordinate risk or suffering a severe drawdown is a successful trader. He or she is outperforming most traders, hedge funds, mutual funds and indexes. A trader who can make more than this on a consistent basis, year after year, is a rock star.”

2. “When you are new to trading, a losing streak becomes really bothersome because we begin to doubt ourselves. We begin to question whether or not we have a future in this business. Over time, I began to realize that losing is just a part of winning, a necessary part. To use a military analogy, you cannot win the war unless you are willing to lose some battles along the way. It is necessary to suffer short-term losses in order to achieve long-term success. Once I realized this, losing did not bother me as much.”

3. “Usually, the longer I am in a trading position, the more profitable it has become because I am trying to capture a trending move, and I want to hold it until the trend fails.”

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

If you want my coming trading articles delivered directly into your inbox (I don’t support spamming in any way), you can send me an email titled “Request for Trading Articles.”

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

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