Well, the long down trend that started last year gave us a decent profits on the way down to the last four trades that was written in my previous post. The whole euro crisis did give us some handsome profits. And the question comes to mind… Is it over? Or is it a temporary retracement?

If you ask me, I don’t know… I have long turned my back to predicting the market. And now focused my energy into betting into sure trends. Like the previous euro down trend. My hunch is, the euro crisis is not over. And I’m guessing this is just a short term retracement. What we need to watch out for is its continuation on the down side. But it might take a few more weeks before it shows a good enough sign.

1.3100 is a very strong resistance. Let’s see if it holds.

Meanwhile, I was reading a lot of books and there’s a particular book that got my attention. Its “Reminiscences of a Stock Operator“. There’s a lot of wisdom in this book that every trader should know. The story is very interesting as well, because its based on a true story for the most part.

Taking advantage of the EURO Zone Debt Crisis.

Do you know what makes great professional poker players great? Its their money management. The reason why there are few great poker players and a lot of people just gambling using luck is because great poker players know how to use money management.

They know the probabilities of each card they are dealt. They don’t try to push their luck even with a bad card hoping that their competition has worse. In forex trading, try to make wait for the right moment to open position, rather than trying your luck just because you want to open a position. The downfall of most forex traders is that they tend to over trade. They want to open a position just for the sake of opening a position. This is detrimental to a good trading strategy, whatever the strategy is.

Money management, i believe, is the best part and makes the most part of a forex trading strategy. Systems for entry and exit like fibonacci, technical analysis and whatnot are just the small portion. A poker player does the same thing, to survive the table, he must manage the money if there comes a time when he suffers consistent losses. Trading is the same way, you must survive consistent losses until the next big trend comes where you can make back your losses and then some.

I will not be day trading anymore. I’m focused on trading daily timeframe due to several reasons.

1. I Love Having a Lot of Free Time

As you all know, I love martial arts and this year, I would like to focus on my training. And to be able to train harder, you need a lot of time to practice. I also love to discover new things and not just make money. The thought of just building my nest so my money can work for me is very tempting. I plan to quit day trading forex and focus mainly on swing trading, that is, longer time frame. Which means, less updates on this blog as well.

2. Stress is not worth it

Being stressed out in day trading is just too taxing. I’d rather spend time discovering new things than spending a lot of time in the computer everyday.

3. Being Wealthy is Not Having Money, But Having Free Time

The good thing about swing trading forex is I can set my position, set my stop loss and set my proft target. Then, I’ll just check it a few minutes everyday to see if the market went against or for my direction. I can also add or reduce positions depending on my trades, in just a couple of minutes then I’m off to do something else.

Doing something else, means starting a new business that could possibly earn me more money. Staring at a chart doesn’t make it boil. I need to do something productive while waiting for the market to move. Attend some seminars, business training or start a new business. At the end of the day, the more time you have, the more things you can do and the more money you can earn because the free time becomes a productive pursuit in making more and more cash flow for you.