The Market Giveth and the Market Taketh

One thing a trader must prepare for, amongst many others, is the fact that not every trade can be a winner. There will be losers. Last Thursday's huge buy in on the carries again broke some serious levels of resistance for the GBPJPY (both 4hourly and daily levels), and also brought the Aussie and Euro -Yens up with it. This resulted in a series of losing trades.

On that point, it certainly reinforces the fact that the FX markets are not just technical. There are MANY different factors involved, and all the more reason why Stop Losses, even arbitrary 50pip or whatever, SHOULD be used in every trade. I'd rather be knocked out at -100 because some Hedge Funds believe the GBPJPY was a good buy at 144 than be sitting deep in -400pips :)

As mentioned in an earlier entry, the Asian markets of late have been 50/50 on whether follow through will occur or not, and what is worse, has mostly ended up as being too early an entry.

What started as a fantastic month with about 800 pips in the bag, is now sitting at approximately 370pips. With still over a week to go for October, this is a bit of a setback, and serves as reinforcement of the idea that GOAL SETTING is important! If you reach your daily/weekly/monthly target, switch off the charts and enjoy life. :)