OK, this past Friday when my USDCAD went up they said it was the “result” of the Canadian CPI. This morning I bought again, having been profit stopped out of the trade from Thursday. Now it’s up over 200 pips, the “result” of the dovish Bank of Canada statement keeping their interest rates on hold. As though the US is not keeping interest rates on hold? As though Canada isn’t a commodity currency and commodities are up and the USD is down and nothing will ever change that according to most?
Well, I won’t worry about it. It may drop again; it may not. I just lightened up a bit to take some profits and have set my stop at a profit stop. Let the markets do what they will. Let the “experts” say why. I will continue trying to trade what I see. I will continue showing you some of those trades in the hopes that those who sincerely want to learn how to trade and who are willing to do the work will see that one can earn pips. All it takes is discipline and the willingness to trade what you see. Not what you want to see; what you see. You’ll be wrong sometimes. But if you have good reasons for going into the trade, select entries where your stops can be small, and cultivate patience you will gain more pips than you will lose.
Looking at the hourly chart for the USDCAD this morning you can see some of the reasons I bought again. It halted at a minor support level; the candles were getting smaller and more indecisive. On the five-minute chart I saw bullish divergence between RSI and price. My stop could be small. While I wasn’t happy it had retraced more than 50%, it wasn’t a lot more than that. It seems to be basing, looking for a bottom. Of course it could drop below parity someday soon but I’m trading today based on what I see now. Here’s the hourly chart:
Well, I won’t worry about it. It may drop again; it may not. I just lightened up a bit to take some profits and have set my stop at a profit stop. Let the markets do what they will. Let the “experts” say why. I will continue trying to trade what I see. I will continue showing you some of those trades in the hopes that those who sincerely want to learn how to trade and who are willing to do the work will see that one can earn pips. All it takes is discipline and the willingness to trade what you see. Not what you want to see; what you see. You’ll be wrong sometimes. But if you have good reasons for going into the trade, select entries where your stops can be small, and cultivate patience you will gain more pips than you will lose.
Looking at the hourly chart for the USDCAD this morning you can see some of the reasons I bought again. It halted at a minor support level; the candles were getting smaller and more indecisive. On the five-minute chart I saw bullish divergence between RSI and price. My stop could be small. While I wasn’t happy it had retraced more than 50%, it wasn’t a lot more than that. It seems to be basing, looking for a bottom. Of course it could drop below parity someday soon but I’m trading today based on what I see now. Here’s the hourly chart:
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.
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