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Friday, January 22, 2010



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...

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