Up 2,500 points this month

The market is back in full swing and we have been rewarded handsomely. In the last 24 hours I have had some nice gains and I am on track to another good month.

Perseverance goes a long way in this business. I started out this month from behind after  losing 4 trades in a row and digging myself into a small hole. I continued to execute my plan and manged to make back my losses and then some. I have also brought my batting average back to a respectable level.

The best way to pull yourself out of a losing streak is to have amnesia when you approach new positions. You got to forget about the last trade and how much you made or lost and move on to the next trade. Every trade is different and you do not want your emotions spilling over to the next trade. This allows you to stay focused and execute your plan based on what you see is happening instead of your emotions taking over and dictating what you do.

Risk to Reward

I have been so busy this week that I have not been able to trade my personal account much. But here is an update of where I am at as we approach the middle of the month.

If you notice my batting average has suffered severely because I have not been able to pay as much attention to my positions. But because I maintained a solid risk to reward on each position I have still been able to see consistent results. Stay Tuned!

GBP/CAD Trade Update

We have officially hit TP1 on our long GBP/CAD position. Our next target is at the 200MA on the daily chart Stay Tuned!

To Speculate? Or Spectate? That is the question

As traders gain more time in the chair they are faced with different challenges. A new trader tends to want to overtrade or are hesitent in their execution, because of a lack of experience and the short time spent back testing their strategy. While the obstacles that many veterans face is getting complacent and over confident after a consecitive series of winning trades.

The seasoned trader’s ability to recognize a buy or sell setup doesn’t mean that they should always take the setup. Knowing when to trade and when to stay on the sidelines in cash is paramount to a traders success. Developing ways to minimize the number of premature trades taken will undoubtedly increase your bottom line.

There are times when there are opportunities all around us, & then there are times like this week when things are really overbought or oversold and require patience from the trader to wait until price action presents the right event at the right location.

Notice how on this Weekly EUR/GBP chart we have several red bars to the downside with alot separation from price action and the moving averages. Neither the bulls nor the bears can sustain a continued move in one direction before the other side tries to flex their muscles and show their strength in attemps to reverse the current trend. With that being said we can expect to see a possible correction up to .81439. This current price action could present a opportunity to gain 118 pips by taking a long position above the bottoming tail with an initial target into the 8MA.

If you have not already done so you should impliment stop gaps in your trading plan to address overtrading. Developing a sense of discipline around the number of trades you take on a daily basis will not only give you peace of mind but will also bring more consistent results in your trading.