Take The Trade – When Stars Align

Patience is paying off quite well here “again” this week, as markets have been more or less at a stand still since last Friday. As tempting as it is at times, to just ” get on in there” – maintaining that “extra little level of patience” can really make the difference.

It’s difficult to get your mind wrapped around it but….for the most part ( at least in forex markets ) you can usually just “let the move happen first” and find your entry later.In fact – I’d say about 95% of the time that the “initial move” ( the move that got your attention / signal / indicator ) is retraced considerably before anything “really big” happens.

I mean think about it……you’ve been watching a currency or stock pull back into an area where you’d be interested in entering on a “daily time frame” – then plan your trade / get your signals on an “hourly time frame” – man…..Even if you waited 8 hours “after”, you’d still not miss a thing really. Imagine looking at a “weekly candle / chart” some weeks later and being worried about “missing a couple of hours”. Drops in a bucket.

As traders we love to be “razor sharp accurate” – as part of the challenge more than anything else. Putting it in perspective it really doesn’t make a lot of difference, if of course you’ve got a sense / idea of where you think things are headed in the longer term.

These days “longer term” may only be 4 or 5 days…..but that’s lots of time to catch some serious movement and make some serious money.

When stars align – take the trade.

I really like what I’m seeing here this morning – across the board in nearly every pair / asset class / indicator etc…with particular attention on the Yen. Pairs such as EUR/JPY have really popped for those looking to “re short” as well USD looks to be running into solid resistance, and could most certainly take a step lower.

I’m close here, but will continue to wait – as we see what “The Americans” are up to this morning.

9 Responses

  1. Warren November 12, 2013 / 8:30 am

    I think we will see 1800 on the spx just get every last retail investor in there and then and only then will we see risk off. Yen strength, dollar weakness. Still have orders ready in EUR/JPY and AUD/JPY waiting for the breakdown. EUR/JPY is looking sweet for a short with this increase today.

    • Forex Kong November 12, 2013 / 8:42 am

      Ya Warren….picking a number much like the lottery at this point – I hear you. 1800 – as good as any “round number”.

      It’s a frustrating market dynamic for alot of people as……those of us that are “sane” can’t imagine buying….so we wait.

      Those who are “insane” jump in with reckless abandon and get wacked.

      I don’t see alot of “warm fuzzy” stories out there as of late – as this type of market makes it pretty tough for everyone.

      I’d much rather be waiting in cash , than holding my breath out there invested.

  2. robert November 12, 2013 / 9:29 am

    Yen losing its effect on the equity markets? Looks like a correction coukd be really near

    • Forex Kong November 12, 2013 / 9:38 am

      Good eye Robert.

      I am “literally” circling ’round my computer like a starving animal, waiting ’til the moment is right.

      It’s my view that indeed JPY is setting up for a nice move as with “risk” in general.

      Having planned in advance – Now it’s really just about “execution”.

      • robert November 12, 2013 / 9:44 am

        What caught your eye in gbpusd kong? Weekly it looks like there is still room to go down..

        • Forex Kong November 12, 2013 / 10:23 am

          Fundies have GBP looking real good as…..the money has to flow somewhere so..

          As we now have it pretty much confirmed that USD will be “sold” along with risk, we can imagine commods AND USD ALL FALLING.

          As well…on a more “tounge n cheek” level – who’s the biggest heavy weights / banker / planners / movers n shakers on the planet?

          Those boys at the ol Bank of England don’t muck around.

  3. robert November 12, 2013 / 10:31 am

    Money better flow to my pocket instead… its looking like usd will be sold as you said.. hope usdjpy follow the script too.

  4. Andy Jackson. November 12, 2013 / 4:19 pm

    Robert’s comments on money following to our pockets is the best plan I’ve ever heard. Loved it.
    Kong. A quick question, What makes you hit the trade button? When the technicals and the fundamentals align right? The technicals and fundamentals are setting up now on the Dollar and the Yen but what makes makes you press BUY/SELL? Devine intervention, voices in your head, a lump in your trousers, what? It kind of matters.
    Running out of thanks but thanks all the same.

    • Forex Kong November 12, 2013 / 4:35 pm

      I’m with Roberts plan as well – Common money! Get in there!

      So…pushing the button yes……well.

      1. Top of the list – confidence. After this long…as many hours, as many trades – I generally feel “I’m right” by the time “buttons get pushed”.

      2. Lack of fear. Hand in hand with #1 but a little different”psychcology wise”. I mean really – “what’s the worst that could happen?”

      3. Patience. It’s not at all abnormal for me to go several weeks without a “real trade” ( I do go fishing during the day, on smaller time frames for fun though ) so…..the “knowing” the big trade opportunity will pay off allows me to remain patient – and avoid the churn.

      So….so far confidence, fearlessness and patience ( an odd mix really )

      4.The plan – I always have a plan. Even if it’s only for the week ahead, or even if only for a news announcement / policy change thing – I’ve always ALWAYS calculated the risk and the potencial outcomes to just “let it be what it will be”.

      5.Short Term technicals and long term fundamentals. I focus on razor sharp technical trades WHEN the fundamentals are in line. It’s a powerful conbination when “stars align”. I only wish they aligned every couple of hours, as opposed to every couple of weeks / months.

      I could go on and on but….that’s a general break down.

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