DISPOSITION - If it ain't moving, you don't need to be trading. The biggest luxury we have as traders is the ability to sit back and wait for the market to come to us. Just because it's there every day, doesn't mean you need to be trading every day. I suppose this can be a stumbling block for many aspiring traders as most people aren't dispositioned to think this way. For most of us, it's natural to think that if you are working at something, then you should be working at it every day you are on the job. So what's different here?
DIFFERENT GIG - Well, for one thing, trading isn't like other day jobs. In fact, as you all well know, trading currencies is certainly more than a day job. The market is constantly moving and an opportunity can present at any moment. But more importantly and to the point, trading isn't only about taking positions. Research and analysis is a big part of trading. Waiting and being disciplined is another big part of trading. Trading is more than the action of taking positions. In fact, there are some days I feel I had the greatest day ever because I held off taking a position. So
COIN TOSS - I'm sure there are many of you out there that have extended yourselves so much with a trade you should never have been in the first place, that you then just basically say f%$k it and trade anything you think may have a chance of working out. You go into coin toss mode where every trade is just a 50/50 chance. And I'm also sure that after you have done this and blown up your account, you finally see a trade that you really love, that you wish you had waited for. So make sure you don't make the mistake of being impulsive. Knowing how to sit back and wait is knowing how to trade.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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