“INDICATOR OF THE DAY” - DON’T CHASE
Today’s report is less about any specific technical indicator and more about sound risk management and discipline. Although we have been on the sidelines for the entire week, we are completely comfortable remaining on the sidelines until a clear opportunity presents. One of the core foundations of our trading methodology is to never chase trades. We let the market come to us, as the challenge of trading is hard enough as it is. Traders should constantly be reminded that we are in it for the long run and the market is there with new exciting opportunities each day. If we miss one today, then we will get one the next day. To force trades is only to put ourselves in a position where we compromise our convictions and fail to allow the best opportunity to make sound and profitable decisions. How often have you been in a trade where you will say “this is a great level and it can’t possibly move anymore so I need to get in right now” and right after you enter the position it continues to move against you where you wish you had never entered the position. We need to remind ourselves about these occurrences so that we are less compelled to be impulsive with our decision making and more responsible in our trading. Doing this alone should make a big difference in your trading results. Remember…sometimes the best trade is no trade at all.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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Joel Kruger publishes 6 daily pieces:
“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)
“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
Monday-Friday (between 10:30am-11:30am EST)
“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)
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