8/3 Analysis: Get Used to Losing
At the NY open, we can see the strong currencies up top are the USD (blue line) and the CAD (green line). On the weak side, we have the GBP (red line).
However, there is no current momentum so these aren’t perfect, immediate trade set ups at the moment. What we look for are steep lines to the far right indicating that strong momentum in the direction of the current trend has moved into the market.
You can trade these situations but you would do so with a pending order placed 10 pips above or below the market price.
- GBP/USD SELL
- GBP/CAD SELL
On the GBP/CAD, price just moved down enough to trigger your sell order and then immediately reversed stopping out at a full 20 pip loss. This is inevitable, if you can’t get used to losing then you shouldn’t be trading.
Now, in the case of the GBP/USD, you can see price immediately reversed on the open of the NY session which means your pending sell order on this pair would never have been triggered avoiding a 2nd loss.
You can watch the entire video analysis below:
You can see that our Currency Strength Indicator is an effective tool for picking out the highest probability, lowest risk trade set ups while avoiding market conditions that aren’t favorable. If you keep using this tool every day along with our daily Forex analysis, you will increase your win rate and be on your way to becoming a profitable trader long term.
Share this article
BECOME AN ELITE TRADER
We invite you to join the exclusive CCT community bringing together top mentors and resources for those serious about being pro forex traders.Join Now