Jul 30th
Friday
I have had several Traders ask me this last month what currency pairs I Trade.
Although I do look at many charts including some stock charts, I mainly focus on these 4 Pairs.
EUR/USD, GBP/USD, USD/JPY, AUD/USD
99.9% of the time these are the only ones I concentrate on!
I look at it like this.
If you ever heard some music played over and over on the radio eventually you will know everything about the song.
Every beat , every lyric, every hook and every distinct rhythm!
The Same With Currency Pairs!
I find that each pair has a distinct rhythm. After some TIME. Meaning YEARS!!!!!!!
You will find that you will know this rhythm by heart. If something is wrong or just doesn’t feel right you know it almost instinctively.
I know the beat, the lyric, the hook and distinct rhythm of these pairs!
When the rhythm is off on one pair, I look at one that has a nice flow, proper volume and cadence!
Most of this year the EUR/USD has been a “Traders Gift“.
It is stumbling around a bit now and the GBP/USD has been my focus.
I primarily concentrate on these two grabbing what I can. If it looks dangerous, I look elsewhere.
Never force a Trade on a pair that has a “spiking price action”.
Look for something easy and boring!
Also, Traders think they must trade the small 1-5 charts because they can’t afford to have huge stops.
My stops are very close to my entry and I Trade the large Time frames. Looking only at the small time frames after a signal on the larger.
I Love An Entry With A Tight Stop! Just On The Other Side Of A Big Barrier!
In Summary:
1.) Learn the Rhythm of only a couple pairs.
2.) If something looks dangerous, don’t trade it. Wait!
3.) Look at 3-4 time frames. Only look at 1 or 5 min. chart after a signal on a larger.
If In doubt, Stay Away! Preserve & Protect Account!
This Is What I’m Doing! You Need To Think For Yourself!
P.S.
1.) TRADE LESS
2.) ONLY TRADE THE EASY TRADES
3.) KEEP MORE PIPS YOU EARNED!
Happy Trading!
EMIT
Thanks Mike!
I like what you say about “I Love An Entry With A Tight Stop! Just On The Other Side Of A Big Barrier!”
You have a great way with words!
Thank you for all your guidance.
Still In my EUR/USD and GBP/USD long,
protecting my profit and looking for easy trades.
Great heads up on the AUD/USD!
You are right!
If it feels wrong get out! trust your gut.
Check you out next week.