The dance continues...

is this a 3 step ? Now that the ever "grey" stimulus package from the U.S has deflated some hope of a latter year recovery, the market's volatility has increased. It certaintly looks like global economies are showing mixed signals with bias to the downside as hopes of stability and potential recovery dims. However, this makes it hard to trade as many daily charts show a congestive mode, albeit the longer term trend is still down. Failures at stabs to the upside may tire the market out and keep it in limbo. Its a time for patience and sideline monitoring. No position is taking a position . The broad range that the majors are in is like a blender chopping up intraday and swing traders. Will this "tomato" sauce thicken any further.

One component of the capstone in FX trading

" One common adage that is completely wrongheaded is: You can't go broke taking trading profits. That's precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits. The problem in a nutshell is that human nature does not operate to maximise gains but rather maximise the chances of gain. The desire to maximise the number of winning trades ( or minimise the number of losing trades) works against the trader. The success rate of trades is the least important statistic and may even be inversely related to performance." William Eckhardt From my own observation in reality, this quote has an important impact on me. Being fortunate to be familiar with several Trend Traders in Forex who have made their mark in this venture, the above quote is given credence. It may seem to defy or challenge common sense or logic, but then again to be a success at trading FX does the same.

Success

Life Wisdom - Jim Rohn Success is both a journey and a destination.It's the steady, measured progress toward a goal and the achievement of a goal.Success is both an accomplishment and a wisdom that comes to those who understand the potential power of life.It's an awarenesss of value and the cultivation of worthwhile values through discipline.It's both material and spiritual, practical and mystical.Success is a process of turning away from something in order to turn toward something better - from lethargy to exercise, from candy to fruit, from spending to investing.Success is responding to an invitation to change, to grow, to develop, and to become - an invitation to move up to a better place in oder to gain a better vantage point.But most of all, success is making your life what you want it to be. Considering all the possibilities, considering all the examples of others whose lives you admire, what do you want from your life? That is the big question!Remember, success is not a set of standards from our culture but rather a collection of personal values clearly defined and ultimately achieved.

Food for Thought..

" assume that they are better than average at picking winners and assume that they are right 50% of the time. They run their losses until they have lost 50% of their capital and take their profits when they are up 10%. They have almost guaranteed themselves a loss of 20% over time!" he exclaimed. "Now assume we reverse these habits, cut out losses at 10% and run out profits until we have at least doubled our money. We don't need to be right more than 25% of the time to still generate a positive return of 17.5 over time. The important thing is that we have skewed the return distribution to the right by changing a bad habit."

Feb 8th 09

Looking ahead as to the potential impacts on hand. US...bank stimulus package now probably delayed till tuesday. Chinalco has agreed on a 6bn cash infusion into Rio Tinto and waiting to hear on Mitsui's buying of some of Rio's assets. ( 5bn) German political issues on officials' resignation. Japan's very slowing economy.