Hello Traders, I don’t know about you but I have found the last 4 weeks trading a little tricky. The only currency to have any strength, the USD, has really faltered and the market has been very whimsical in its movements. The dollar bull run of late last year/early this year, seems a distant memory. I am pleased to have turned a profit this month but my trading frequency has come right down. I am in capital preservation mode right now until clarity comes back into the market.
This Wednesday we have a HUGE event for the dollar and thus the FX markets as whole in the form of the FOMC statement. Are the FED going to put the recent bad run of data down to a blip/bad weather or are they going to be more concerned? Either way, its going to be highly volatile so I am going to await the statement, digest it and then move back into positions accordingly.
One of the things that helps me know when to jump in or stay out of positions is being in tune with the market daily, so that I can determine the behaviour of the market. I view the market as one big person, moving from trait to trait over time…sometimes calm and highly predictable, sometimes erratic and excitable, sometimes boring and slow so getting under the skin of the market helps me know when I need to be more active with my trading and more importantly when I need to sit on my hands. In this week’s video I run through five of the main resources I personally use for trading each day, two of which help keep me in tune with the market. These are fantastic for aspiring traders to help them with achieving the all important consistency.
The markets are sadly imperfect and this is what makes them tricky to trade. We have to be prepared to be flexible, to adapt when the goal posts change and to listen to the tune of the market to know when a change is afoot. This is why I send daily reports to my trade alert/coaching clients to ensure that they are kept in the loop DAILY with how the market is acting. Use the resources I have suggested in the video to help you do the same.
Until we speak next, trade cautiously.