2009-11-30 EURUSD Live Trade

I would take this morning's drawing in my analysis and superimposed on my chart when I did my entry.  On the chart, the right shoulder turn out to be higher.  Thus, knowing how to validate a setup is a skill that a trader needs to acquire.

Result: Closed 1/3 with 70pips, but remaining stop out during the US session.  Net 23pips.

EURUSD 2009-11-30 Live Analysis

Monday: 30th Nov

Potential H&S forming.

Keep Trading Simple

I always hear this - Keep Trading Simple.  I have been wondering how true is this.  Trading is never simple.  It involves risks, money sense, and decision making process to put on a trade.  It is the same as a business, it is tough, especially the management part.

I have been telling people and traders that trading is never simple.  Then one day, I actually used this phrase when explaining certain concepts to a trader.  I was liked, "what happened?". 

Then, I realized is because I have build a structure on my thought process and created a methodology to learn.  With these process steps, it flows with the thoughts and thus we can keep things "simple" by following the process and not jumping from one thought to another. 

I have seen other people's structure that are so complicated that are stuffed with rules, observations, and excuses and yet they try to pass this on to their students and ask them to keep trading simple.  In short, I encourage traders to learn more and focus on understanding your thought process and build a structure around it.  This, in my opinion, would help you to strive well in the journey of a trader.

Melvin's Big Catch

I didn't had the time to catch this, but at least one of us did.  This was predicted two days back, and we have been waiting for it.  This is the power of understanding price action that is predictive compared to indicators trading which is totally reactive.

This is a 300pips catch!  Congrats bro!

EURUSD 2009-11-26 Live Analysis

Thursday: 26th Nov

After consolidating most of the month, it finally broke out. 

I always tell my students, when playing the levels, most of the time you would get what you want, but there would be one that would break above or below the level.

2 Failed Trades

Last 2 days, I had two failed trades.  Tue, I put in a 1/3 lot to test if a setup would happen, and it failed.  Wed, I try shorting AUDUSD based on a possible H&S, and the right shoulder failed.  Lost -10pips and -30pips on each.  Now I am on a net loss of -22pips on my new 300pips cycle.  :-(

These two trades gave me a signal that I may be seeing "outdated" stuffs on my charts.  Got to clean up and re-start again.  That's something that always puzzled me, why would other people's charts not updated for years!  As price developed, the relevancy of the support and resistance would changed.

EURUSD 2009-11-25 Live Analysis

It was a typical "short" day yesterday, price went down to halfway and backup to the same level.  The road map still shows a bearish direction, but we need a setup to happen.

2009-11-23 EURUSD Live Trade

This trade do not have any confirmation yet.  Lower probability but small risk, good rewards.  Will still have to manage the trade til the confirmation comes

Result: Doh!

Did not manage the trade well.  Price did the intermediate stop that I predicted and I did not scale out, thus eventually got out with only 18pips profit.