View: Blanks of the trader
Blanks of the trader
Following last weeks fundamentals, majority of equity indices continued move to the upside from the current levels. That came in handy to the position currently held on CAC40, which as earlier anticipated broke recent resistance levels. As it stands now this position is about +170 pips in the money. Another last weeks setup that got filled was bearish Cypher pattern on GBP/USD FX pair. Before this weeks open it was slightly in the money despite prevailing USD weakness across the board. Will be watching this position with more attention next week, as fundamentally there is not much of strong case to go long on any USD pair. Having said that, trade decision was made based on technical analysis, despite all fundamental headwinds. See"The Signal and The Noise"
by Nate Silver read as a useful guideline in terms of avoiding misleading hype that very often stands on the way to successful trading.
In terms of next week it would be too naive to jump straight long on equities and short USD in my book. There is very likely pullback as all those instruments are extremely overbought or oversold. Personally will be watching closer EUR/USD on 4 hour chart. If the pullback will be as deep as 1.3646 and not lower than 1.3612 will be looking to get involved in trend continuation type of trade on the long side.
In terms of the setups, next week looks quite dry in my watch-list. What came into my attention recently is abundance of demo trading contests offered by different brokers. It all looks very good at the glance as traders do not have to take any risk, and can potentially have monetary returns. Looking at the returns produced by winners there is no way not to be impressed with 4 to 5 digit percentage return numbers. However i believe that these type returns are extremely hard to reproduce on real accounts due to the fact that psychological factor is missing in demo trading. Also metrics of those hyper returns very often show deep draw downs and reckless position taking, that multiplied with psychic factor will be against trader taking the same trading approach trading real money accounts.
Stay aware and sharp traders, and have a good week!
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