Staying Discipline, learning from mistakes

As i was intending to write this week blog entry, i recalled my reasons to start a blog site was to capture and detail my journey in Forex trading. There are times when I make consecutive mistakes (In a row of 4 to 5 positions, whether long or short, which went wrong direction or against the trend), and I become emotional abut it or been hard on myself.

At the end of the day, it is really not about how much money you make. It is about learning from the mistake that I made.

Last Friday, I visited the Bookstore and got myself the Rich Dad Poor Dad: Guide to Investing and read it half way through. I personally find it a good book to read and understand if you are serious about getting Rich. As i was reading the part on the 5 type of investors, i notice that been a Retail Trader in Forex or Stocks, we also need to work our ways to become a Qualified Investor, be it Fundamental or Technical. Most of the people (90/10 rule) who lost monies in trading, are a results of lacks in either of the 3Es mentioned in the book;

- Education

- Experience

- Excessive Cash

Alot of times, we entrust our hard-earn cash (blood monies) to the people (fund managers in hedge funds or mutual funds, brokers, etc) we hardly know and believe that they will help us to make money. There are times, we need to learn investment ourselves and make mistakes in order to gain experience.

In my journey as a trader, i do make mistakes myself. The most valuable and priceless thing that i learn from Forex trading is not the amount of monies that i make but the amount of mistakes that i have made to make me a more successful trader. In my week 42 trading, i made quite a number of mistakes due to my impatience.

I ended week 41 with P/L $693.19 and Open Trade Floating P/L $(95.29), which you can see from the MT4 chart.

EURUSD Week 42 Forcast Trend Analysis

Based on the daily chart of EURUSD, there are a 3 key things you need to know from the chart.

1. A Pin Bar on 12-Oct-2010 with a strong support around 1.37742.

2. A Fake Out Candle on the 15-Oct-2010, with day high at 1.41576.

3. A Divergence in the RSI, if you were to count the no. of pips from each divergence, you may notice that the strength of each push is gradually lower than the previous strength.

How I see the currency pair for next week is again the "Not sure what's next" kind of mentality where the market is going. This can also be a consolidation point or week starting pivot point for retracement.

My sentiment of the market is long term bullish but currently bearish. This week i will be looking at short term sell position with overall buy.