Please vist my report.

This week should give way to a new trend for the next few weeks.

http://www.fxstreet.com/technical/analysis-reports/fx-weekly-report/2009-02-28.html

Have a good week.

Pierre

New post for the week ahead.

http://www.fxstreet.com/technical/analysis-reports/fx-weekly-report/2009-02-23.html

Have a good trading week.

I received a comment recently and decided that I had not written much about Discipline in trading as of late so I think it appropriate to do so at this time. In fact I think I will purposely make a commitment to dedicate the next two weeks or so to this cause.

I’m going to use a lot of metaphors to try and get my point across as this usually helps in remembering comparisons to other things in our lives and consciousness in order to learn good habits and stay on track.

So here is the first one: Habits are habits - Some are good; some are bad

We all know this, but what do we do about it? How do we change a bad habit? How do we recognise and focus on good ones?

Here’s the bad news; Most of our habits where formed in childhood. Here’s the good news; all Habits can be changed! So how do we do this?

Here’s one of those metaphors I was talking about: Practice makes Perfect! Have you learned to play a musical instrument? How about when you learned to ride a bike. Or what about when you got your drivers license? All of these things required months if not years of practice (like piano) in order for you to become proficient. Well trading is no different. And in fact, most of us would have employed a teacher or followed a course in all other things we have learned. Have you done this with trading? All brokers offer courses.

The steps where important too: Practice in a safe manner such as drive a car in a parking lot or you used training wheels on our first bike. In the case of piano we would not have done a live performance without hours and hours of repetition and practice. Learning to change our bad habits into good ones.

One more thing. We did not attempt the next level without some sort of testing to see if we should move forward. Grades for piano, official testing for drivers license and of course help from Mom or Dad when we tried the bike without training wheels. And at best we moved slowly into the next phase of our progress in a safe manner. For sure we didn’t take our bike out into rush hour traffic until we likely had several years of practice on the local streets.

So here’s my advice. Practice your trading in a demo account and log everything you do. When you have reasonable records of success (I suggest 300 trades or more) then move to one of the mini or micro accounts offered by most brokers. Then slowly increase your risk. Starting at just .050% of your account. That’s right! Just one half of one percent of risk by way of stop-loss. Then when you have proven success at that level you can slowly increase what you trade moving up to and no higher than 3% risk by way of stop loss. Talk to your broker and be sure you understand this fully. Nothing is more important to understand. And of course Practice makes Perfect! As one of my mentors told me when I started; learning to trade is a marathon… not a sprint.

One final note: There is a book called Outliers. It describes how certain individuals become proficient at what they do. A very valuable read indeed.

Cheers

This pair has been in a channel for most of a month. It’s reaction at the top of this channel should be observed for a breakout or reversal.

Cheers

I had been talking about a potential reversal at the bottom of the channel. This came to be, albeit following one final push down.

I am mildly bias to a continuation upward of this reversal following a re-tracement. However I don’t think we need guess at the direction as I think the current move has likely defined where strong breaks are likely.

The two key levels are now 1.2760 and 1.2510

Cheers

The EUR/USD looks very ready to make a move.

The pair is teetering on a tipping point and will surely react when the US Markets open today. Will the lower trend-lines hold?

Please see my report:

http://www.fxstreet.com/technical/analysis-reports/fx-weekly-report/2009-02-16.html

In follow up to yesterday’s post, I now see where the ending diagonal likely started on the GBP/USD

This barrier will now be very important going forward. A drop below 1.4350 would likely result in another swift move down.

Both the GBP/USD and EUR/USD pairs are are some sort of tipping point. In the last 6 years of trading currencies I have never seen such divergence in activity. Of course we have not seen this type of economy in the last 80 years so I shouldn’t be so surprised.

Here are some levels and trend-lines that I feel are worth watching over the next few sessions.

NEW FX WEEKLY REPORT

http://www.fxstreet.com/technical/analysis-reports/fx-weekly-report/2009-02-09.html