Trading is beginning to wind down for the holiday period. Be careful trading during periods of lower volume. I am off doing other things for a couple of weeks. If you would like to read a good book about the psychology of trading over the holidays, I recommend Trading in the Zone by Mark Douglas.Happy Holidays to everyone!!!I'll be back Tuesday January 8th 2013.Michael Bridgman www.privateforexcoaching.comQuestions - email Michael@privateforexcoaching.......
Trading is showing signs of being quite erratic this week. As we go deeper into the holiday season, trading volumes decrease and the chart setups are less clear. When this happens, it's best not to trade. You must be extremely disciplined to make money trading. During holiday periods, it's harder than normal, because the largest traders step away from the market, but they will be back! The CHF looked best to me of the......
It took a while to find a trade, but after the US economic news releases were out of the way, the AUD set up nicely, allowing us to enter with a small stop and a 4:1 Reward to Risk ratio. This trade was so easy to manage that I haven't marked in the "take profit" areas as the trade progressed downward. Very few trades are this easy. Always remember to move your "take profit" down to protect yourself against a sudden and very abrupt......
EUR looked good and had an excellent Reward to Risk ratio setup of almost 6:1 overnight. These are extremely attractive trade setups and hard to resist - if everything else adds up.The Asian session high and yesterday's high were at the same level. When the UK traders broke this level and then pulled price back, a familiar entry setup presented itself. Price had been stair stepping higher and the trade required a very small stop......
A common characteristic of successful traders is that they have found a strategy that works for them. This strategy enables them to trade with a high probability of success. They use this strategy methodically over and over with each trade. Trading is routine and almost mechanical to them. If a trade fits their criteria, they take it, if not - they walk away.A pervasive characteristic of unsuccessful and inconsistent traders......
After a very slow week and a short one for us, because we never trade NFP Friday, we found a wonderful trade in the EUR. It's been a frustrating couple of weeks as the pairs have not been moving as much as usual and nice setups have been delivering much less than we are used to. However the trading week ends with a very encouraging trade. I don't usually show critical areas on these charts, but my students will recognize its significance.We......
The AUD set up nicely with lower highs, a wash and rinse and a Reward to Risk of 4:1 to our target 2. Unfortunately the market had other plans and we made modest gains in what looked like a trade with lots of potential. The market move was quite shallow, but it gave us a clear reversal sign with a very wicky candle which coincided with another tool that we use. We always watch the market for familiar signals and trade accordingly. ......
Modest EUR gains to start the month of December. After a series of higher lows and luring in breakout traders, the EUR pulls back, then forms another higher low. It's unusual to see yesterday's high and the Asian session high so close together. The Reward to Risk exceeds our minimum 3:1 ratio to our Target 2. We enter long and patiently watch price test and retest the Asian and yesterday's high. Price begins to climb......
