Do Not Look Beyond the Obvious in Forex Trading

by Vahid | Forex Market Analysis and Signals | Monday, February 23rd, 2009

Hello

It seems most currencies are trying to change their direction after a long time that they have been following a long trend. Most people think that the economic condition will be changed very soon because of the changes in the political situation of USA but this is not true and it takes a long time. The economic recession has not shown many of its effects yet and almost all of the strategies that governments are taking need a lot of time to show their effects. So we should not expect to see strong trends just because governments are trying to solve the economic problems. All we need to do is just waiting for the best trading setups and signals and taking the right positions.

Ok! In most cases when I write an article I only have time to read and edit the article once before publishing the work. So most of my articles have a lot of grammatical and spelling errors. I read and edit them later when I have the time, but that is when most of you have already read the article. If you find any grammatical and/or spelling problems in most posts please let me know so I can fix them. I will not be offended, thank you

Tip of the day:

Do Not Look Beyond the Obvious in Forex Trading

Our mind is trained and is used to think about the future. It tries to forget about the present. It tries to predict and become worried about the future. In forex trading we do the same thing too. When we see a signal, we really don’t know what will happen after that. All we can do is just taking the proper position and setting our stop and target orders. But sometimes when we are looking at the charts our mind starts predicting the future based on the memories that it has from the past events. This is managed and performed by our subconscious but we are not really aware of it. Our subconscious can control us even when we are apparently awake. Most of the bad trades we do are imposed by our subconscious that is used to look beyond the obvious. It makes an image of the future trends based on the memories that it has and then we decide based on that image. When we analyze our trades later we will find out that we really hadn’t seen any signal and there were no signal actually. We just followed our imagination.

So when you are trading and before you take any position, just ask yourself that is this the signal I should see? Is this what I have to wait for to take my position? These kinds of questions activate the conscious and so prevent the subconscious to take the control. Most people think that subconscious works only when they are asleep but this is not true. It can take the control while you are driving, talking, working and trading.

But this not only the subconscious that tries to look beyond the obvious. Sometimes we try to do it intentionally because we are and we want to be smart. Being smart can be good in some other businesses but as I have always mentioned forex is really different. Sometimes you fail in forex trading not because you are not smart enough to learn how to trade but because you are too smart. You try to do something extraordinary in trading and make the maximum profit. You try to compete with the others and so you try to see more than what the others can see. So you overanalyze and you try to predict and see a far future. This is almost impossible. As I said all we can do is just finding the best signal and taking the proper position. We will not know what will happen after that and we should not try to know. We should decide just based on what we see not what we think and imagine.

Today signals will be posted in the below table at 17:00 EST which is 22:00 GMT. Be on time!

Announcement (03:46 GMT, 24 Feb): Ok! We are done for tonight. No more orders. Click here if you are late.

Note: 1. Read the disclaimer before you use the below buy/sell signals. 2. If you have not received the below signals on time, just compare the current price with the entry price and do not take any position if the target is already triggered or the price is close to it. 3. Please note that some of the below signals can be pending orders. So read all the explanations carefully before you take any position. 4. Cancel all the pending orders that are not triggered from the previous day.
CP	What to Do?	Entry Price	Stop Loss	Trailing Stop	Take Profit	Results
EUR/USD	Sell (23:58 GMT, 23th Feb)	1.2671	1.3024	80	1.2571	-
GBP/USD	Sell (00:23 GMT, 24th Feb)	1.4452	1.4756	80	1.4352	+11 (15:47 GMT, 24th Feb) I closed at 1.4441
USD/CHF	-	-	-	-	-	-
USD/JPY	-	-	-	-	-	-

USD/CAD	-	-	-	-	-	-
USD/SGD	-	-	-	-	-	-
USD/NOK	-	-	-	-	-	-
USD/SEK	-	-	-	-	-	-
USD/DKK	-	-	-	-	-	-

EUR/JPY	-	-	-	-	-	-
EUR/CHF	-	-	-	-	-	-
EUR/GBP	-	-	-	-	-	-
EUR/AUS	-	-	-	-	-	-
EUR/CAD	-	-	-	-	-	-
EUR/NOK	-	-	-	-	-	-

GBP/JPY	Buy (01:25 GMT, 24th Feb)	137.61	131.83	180	139.61	+200 (14:20 GMT, 24th Feb)
GBP/CHF	-	-	-	-	-	-
GBP/AUS	Buy Pending Order (23:53 GMT, 23th Feb)	2.2656	2.1960	180	2.2856	-125 (21:04 GMT, 1st Mar) I closed at 2.2531
GBP/CAD	-	-	-	-	-	-

CHF/JPY	-	-	-	-	-	-
CHF/SGD	-	-	-	-	-	-

CAD/JPY	-	-	-	-	-	-
CAD/CHF	-	-	-	-	-	-

AUS/USD	-	-	-	-	-	-
AUS/JPY	-	-	-	-	-	-
AUS/CAD	-	-	-	-	-	-
AUS/CHF	-	-	-	-	-	-
AUS/NZD	-	-	-	-	-	-
AUS/SGD	-	-	-	-	-	-

NZD/USD	-	-	-	-	-	-
NZD/JPY	-	-	-	-	-	-

SGD/JPY	-	-	-	-	-	-
Total:						+86

Further Reading:

26 Comments:
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Comment by xaser

2009-02-23 15:23:53

Isnt it past 5 already??