A Look Back At Forex Trading - 4/13/06

by : eddie0816

Hollywood made a movie about this market last year. It was about a couple of friends going to the Napa Valley for a wine tasting tour. " Sideways". Consolidation continues with trading in the established range.

This has been a brutally tough market to make money in, but with patience and preparation, there are many winning trades to be had.

Last night our entry was perfect, with the trade only going against us for a total of three pips at its worse. Then we closed our first trade for 50 pips, and our second trade for 90 pips. Not a bad night of trading.

Tonight we are trading around 1.7510. We do not expect any drastic moves up or down with the holiday fast approaching. With that said there is some minor news being released tomorrow, which includes retail sales, Business inventories and import/export prices.

There is a minor region of resistance starting at 1.7530 and going up to 1.7575, quickly followed by the super resistance at 1.7600.

On the support side, we are looking at a range from 1.7480 to 1.7500. There have been very few definable significant trends to ride.

It is all the more important to adhere to your risk vs. reward and money management rules, and most important you personal trading rules. The importance of a quality forex trading course and good forex trading education is magnified in this type of market.

No market stays the same forever, but when you get the opportunity to almost predict what's coming...jump on it. This sideways market has been a great opportunity for all of the beginners to learn the skill of patience.

No trader can be successful with the four major attributes. Confidence, aggressiveness, discipline, and patience. In the last few weeks, it has been so important to wait for the good support and resistance levels instead of jumping in ahead of them, and ultimately taking a loss.

Now, don't get me wrong, sideways markets can be very difficult to make significant money in, but that does not mean that there isn't money to be made. In fact, it is very common to be almost 85% accurate in this type of market due to the very predictable top and bottom of the range.

That being said, you might only be able to make 2 or 3 trades per week, which is more than enough if that's all that is available.