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Discipline

$YEN OPEN - USDJPY 40 PIPS LOWER BUT RECOVERS.. 105.5 STILL ON?In the first 2 hours of trading UJ managed to carve 30 pips lower to 106.3 but since then UJ has edged higher to 106.8 highs (atm 106.7). Whether we will hit the target at 105. im not sure, the starting data has been mixed. Whilst we ticked lower 40 pips which was a good sign, we quickly pulled back all of them and $yen is now trading 50 pips up from the lows - with the candle looking bullish e.g. there is a large gap between open and lows, and the close is virtually trading on the highs meaning UJ MAY be looking to push higher now. - Although this "premarket" analysis may be premature as liquidity is thin and the "bullish" start MAY just be noise OR some bears taking profit ASAP incase there is a big recovery higher shortly. My ideal entry buy limits are at 105.5 (see previous article), but im cautious about potentially missing a good trade if we dont actually get to the "ideal" level. The potential upside even from the less ideal price at the moment of 106.7 is at least 200-250pips. However, this UJ entry reminds me of a fundamental trading lesson - discipline! The trade was to buy once support is tested/ failed, buying after such event is much more warranted (versus buying NOW and being impatient) for several reasons: 1. if we test 105 and fail, the buyside momentum will be much more aggressive than simply buying now as bears are stopped out of their shorts, a long squeeze will occur - hitting their stops causing the market to trade bid. 2. Furthermore, there will be greater market demand in general for LONG UJ positions as more capital witnesses the level fail, thus BUYING would be the only way to look at UJ. 3. Finally, waiting for a 105 level will likely mean that the London session will be starting soon, thus the biggest spot trading FX institutions will also be adding buyside pressure . - why are these points important to wait for vs buying now? All of these elements together mean the UJ market will experience huge UPSIDE momentum, thus reducing downside risk and the potential trade length (time), whilst also maximising profits e.g. by entering at 105.8 is another 100 pips profit vs entering now. Finally by entering the trade with the game plan it means - we have stuck to what we planned, if we stick to our plans it means uncertainty = 0. Messy/ impulse entry's = unnecessary risk and >0 uncertainty. The reason i decided to post this was just a reminder for myself and everyone else to stay disciplined and trade your strategy!
by QuantumLogicTrading
4
CADJPY 60 Bearish CYPHER PATTERN @ 84.75Hi Guys, This is a bearish CYPHER pattern @ 74.10 and stop loss will be placed above the X leg which is used as good resistance in this case. Targets will be at the 38.2% and 61.8% fibonacci levels. IF/WHEN first targets are met, half of the position would be closed for profit and stop loss for the second half of the position will be moved to break-even, ensuring a risk-free trade. Thank you for your support. Trade Numbers: Risk: 65 pips x 2 = 130 pips Reward #1: 67 pips. R:R = 1:1 Reward #2: 108 pips. R:R = 1:1.65 Plan your trade... Trade your plan.
Short
by Krunal.Patel
AUDJPY 4H Bullish CYPHER PATTERN @ MarketHi Guys, This is a weird looking CYPHER Pattern but still a valid one according to my trade plan. I didn't spot it till about an hour ago and saw that the market did not violate the X leg but actually bounced off of it so we know that the support level is pretty strong and therefore we can buy. The Risk to Reward ratio for these trades are much better but hardly occurs. This is a bullish CYPHER pattern @ MARKET and stop loss will be placed below the X leg which we use as good support in this case. Targets will be at the 38.2% and 61.8% fibonacci levels. IF/WHEN first targets are met, half of the position would be closed for profit and stop loss for the second half of the position will be moved to break-even, ensuring a risk-free trade. Thank you for your support. Trade Numbers: Risk: 150 pips x 2 = 300 pips Reward #1: 210 pips. R:R = 1:1.4 Reward #2: 320 pips. R:R = 1:2.1 Plan your trade... Trade your plan.
Long
by Krunal.Patel
Why its SO important to stay DISCIPLINED!!!Here is a great example on why it's so important to stick to your plan and follow your rules 100%! GBPAUD 60min Bear TCT: Notes are on the chart Would you have been disciplined enough to watch the market get 99.9% to Target #1 and sit through a 150 Pip Reversal and losing half of your profits? Then watch the market come down and Double Bottom just ahead of Target #1. Seeing a Bullish Hammer at the Double Bottom? If you did have enough Discipline/Focus then you would have been rewarded with a lot of Pips! In these situations I always remember what my Mentor preaches... "It's all about Process over Outcome". What this means is that it's not about the money or pips you make but its about your process of trading. Will you follow your Trading Plan that you have backtested? Will you stay Disciplined? Will you stay Focused? Will you forget about the money and just focus on the Process!!!??? If you can then you will be that much closer to succeeding in this business!! Happy Trading :)
Education
by PateSkpate
28