FX BREAKOUT

I want to draw you attention to what EURusd is doing this morning. You will see the breakout pullback continuation is taking place, that leg is not complete until it breaks the TREND LINE( note the RED LINE.) Now this is what we are doing. We wait till tomorrow because it might not break the line today. It has reached that line already if it eventually breaks the line it might retrace, form hammer or spinning top or form whole body so we are not certain. This is one of the reasons am not trading on daily today 
Am watching like a cat to shoot like a snipper. So again we wait to see what will happen tomorrow.  Just in case you want to risk, take your profit before the Fib level 61.8.
If you watch properly am on this trade on demo not with my real life account hoping that it might break the resistance. When your price gets to support or resistance you don't hope you wait. for the breakout to happen. QED.  Can you now see the patience am talking about.

NO 1and 2 RULEs IN FOREX

The no 1 rule in Forex is never ever trade against the trend. When the trend is up look for opportunity to go up.And when the trend is down look for opportunity to go down.
It is like jumping out of a moving train you may never live to tell the stories. If the trend is going to change allow it to start running in the new direction before jumping in.
''Swim with the tide and not against it, You may get hurt.''

The no2 rule in Forex. Never trade technical in a smaller Time Frame during the News. Fundamentals don't respect the technical  during the news especially in a smaller Time Frame. I advice people to stay away during the news if you can't trade it

My stop loss was hit on EURusd yesterday buy recovered on USDjpy. Am staying out of the market today and will only allow my monthly and weekly trade to continue running.

See You At The Next Level

THE MIND OF MR MARKET WITH EURusd

Did you see what Mr. Market has been doing with EURusd this morning. It pretended it was going up and all of a sudden it changed its mind to start going down. However on the weekly T.F its showing retracement. Now if i read his mind correctly i think its not coming back up so i have decided to short on EURusd just for today. On the weekly i will like to stay quiet until tomorrow.

Le's see what am talking on the chart below

                                     
  
I also advice you go short on USDjpy. We will talk about this latter in the day.

Enjoy your day.
I will be at the top when you come calling. See You There

MR MARKET

I hope you had a great week? Well for me a slightly profitable week though my long term trades are still running. I told you in my last article to beware of going long on GBPusd . I almost went against my rule. How?. I decided i was not going to have anything to do with GBPusd. But when i saw the movement i though i shoul quickly take some pips. But i changed my mind and it paid off.

The last rule in Forex is never break a working rule. That's my own rule anyway.
I also told you to wait for the pull back on EURusd on daily T.F. (read my past articles).
 Now if you read the chart below very well we cannot precisely tell the direction of EURusd. It might break the support or move up and  break the red trend line. So we are still going to wait before we decide where to go.

Read the chart below and see what you can make of it.

See You At The Next Level

HOW TO FIGHT RETRACEMENT IN FOREX

Retracement  in Forex is the worst consumer of pips. It can consume the entire profit you made in a whole month.   This is why you need to know the ATR of each of the currencies. especially if you are a day trader. Although it happens in a higher T.F too  just like it did with EUR/usd today .If you read through my post you will see that i said i have taken some profits and am leaving some to run.  It was because of retracement.

Now this is what i do . Usually when am day trading, I trade between 3 am and 10 am GMT . As early as 8am  i take profit and allow some to run with a trailing stop.  Or i take my profit when i see my arrow appear in the opposite  direction of the trade, not the trend, on a lower T.F . Every trend retraces .
Once the ATR is reached for the day you can never predict the extent of the retracement that was what happened with EUR/USD today. And this why i advocate patience.

So how do you now fight it? Once you are conversant with the ATR of the pair you are trading. Please don't be too greedy take 50% profit and allow others to run on trailing stop. I hate giving back profit because Forex is nasty you may never regain lost grounds.

So please take note of these lesson its very important .
See You At The Next Level

 N.B-------Please be careful of going long on GBPusd It may likely rest tomorrow before resuming the Northward movement.

EUR/usd

If you read my last write-up you will discover that I said that we should wait for price to break 1.39516

I had to monitor the EUR/usd till about 3am. As soon as it broke the price level I went to 1hr T.F to look for an opportunity which I took immediately .Though I have taken the profit for the day but still in it .

Now remember I said we will wait to know if there is going to be a pullback before taking the trade. So we are going to wait till tomorrow to see if there is going to be a pullback to go long. Remember I told you that Patience is a virtue in Forex  trading. If you cannot wait for the right time you will continue to lose in Forex . You should learn to wait patiently even for days . See when we have been waiting for EUR to break that price level .  

George Soros says ‘’when there is nothing to do , do nothing’’ . This is the rule that I follow in every area of my life and it has helped me in Forex.

See the Daily and 1hr chat above It will help your judgment on your next trade 

See You At The next Level

PRINCIPLES OF SUCCESSFUL TRADING

 WHAT YOU NEED TO KNOW ABOUT EVERYTHING INCLUDING FOREX TO SUCCEED


Am not going to say much about Forex today but on what you need to know to succeed in all areas of life including Forex. I learnt this principle in one of the trading books i read and i wish to share  them with you.

Now let's ride on
1. '' Know what you are doing.''   Bejamin Graham

2.''  The market like the Lord,helps those who help themselves. Unlike the Lord, the market does not forgive those who know not what they do''.Warren Buffet


3.  '' Don't do anything until you know what you are doing.'' Jimmy Roggers

Please arm yourself with these principles before trading in Forex and by extension whatever you want to embark upon.

Meanwhile prepare to pull the trigger once EUR/usd breaks 1.35916 on daily T.F . One it is broken i will let you know whether we need to wait for pull back or ride with the Sharks

See You At The Next Level.