Subscribe Now

Friday, January 22, 2010

TIIIIIIMBER

Ouch...

I was expecting a drop but not this hard... I thought the trees were coming down on Monday only. Oh well, better for me... more bling bling to my pocket :-D

Anyways the trend is clearly down still, although it looks like we're having an extension, I think we may have some rebound on Monday or so...

Now, just because I say there might be a rebound (not only just due to EW structure but because this area has a good support) either don't trade a freakin' rebound or use freakin stops !! I say this because someone came up to me a few weeks back saying he lost money on my advice when I said there was a rebound due on EURUSD, when I clearly stated the trend was down and the goal was to spot tops, not bottoms and he went long anyway.

USE STOPS ! No one will be right every time, and most important than stops is money management. Don't be greedy trying to hit the jackpot, trying to nail that one trade that would set you for life: IT WON'T HAPPEN. Work your way up step by step, just like in a staircase fashion.

Good traders think in a perspective of how much one can lose, bad traders always think how much they can win with a certain trade. All you gotta do is take care of your losses, the winning trades and the profits will take care of themselves if you TAKE CARE of your losses. Cut them short !!

There is a saying that goes "Bulls make money, bears make money, greedy pigs get slaughtered...".

To complete, this actually is a good place to go long (both EW and TA call for a short term bottom), as long as a person uses a stop in case this keeps going and going down. There is lot of support here, and as bearish as I can be I'm not blindfolded and don't expect this to break supports at first try.

So, after all this rambling here's the chart...


blog comments powered by Disqus

Live Economic Calendar Powered by the Forex Trading Portal Forexpros.com
Disclaimer: The information provided on this website, while timely, colorful, and accurate, is not to be taken as financial, legal, tax, psychological or any type of advise. The purpose of this website is to track the progressions of human herd psychology as it is reflected through several financial markets. Any commentary on this page, however useful it may be, is used for illustration, and to inspire thought provoking discussion, and not to be taken as specific trade recommendations. We are not endorsing any site or service, nor are we promoting choice examples as real-life trades. If it sounds sarcastic, it probably is and if it offends you, just don't read it. There are tremendous inherent risks in attempting to trade any market using any vehicle, particularly if it is leverage. Please contact your broker to explain all risks involved in the vehicle you will be trading and any questions you may have.

Back to TOP