GBP/USD Snapshot… Trading Psychology…

I am not going to submit a formal analysis today, within this pair, for this session at least. I do want to talk about this pairs current stance, while we are in a mode of “waiting”.

Looking at multiple time frames, to include the 1D, 4H, 2H, and 1H.. You will find that on the 1D and the 2H time frames we are within a Kumo (as of this writing) and we know not to trade a pair or “enter a trade” when the pair is within the Kumo, so this makes trading this pair relatively hard.. Looking at the 1H chart we are clear and above the Kumo however; momentum is being limited by the prevailing Kumo on the 1D and 2H charts… We need to see this pair above 1.8775 (with a close) to look higher, clearing the Kumo’s in both of these time frames.

In my opinion.. Aggressive Traders may not agree, I would would recommend that sitting on the sideline within this pair is optimal until we can get a clear direction (which we do not have right now).

I often say.. “It’s easy to get pips.. The Challenge is Keeping Them”… This is true, and often Traders spend a lot of time figuring out how to “get” pips, but often find themselves loosing or “breaking even”… The art comes in “keeping” pips that you have EARNED…

How do you EARN a pip? You earn pips through patience and discipline. You “earn” pips when you are willing to go take a walk, have a cup of coffee, while the rest of the market is scratching their heads and “executing possibilities”. You “earn” pips by making up in your mind that keeping pips is more relevant than simply getting them.

Week 1…

“If I earn 100 pips and on Friday I take 100 pips to the bank I am rich… If I earn 100 pips and loose 50 of them on a possibility on Friday, I am frustrated. “

Week 2….

If I earn 50 pips and on Friday I take 50 pips to the bank, I am 50 pips “richer”…

If I earn 200 pips and loose 100 of them on a “possible” on Friday I am MAD!

Week 3….

If I earn 75 pips and on Friday I take 75 pips to the bank, I am 75 pips “richer”…

If I loose 25 pips on “possibilities” I am now looking to take revenge on the market to get them back…

Week 4…

If I take a break, and watch the market for 1 week and spend time reading the success stories of others, teaching others,, I am 225 pips richer, and I live to trade another day…

If I loose another 75 pips on “possible” trades I am probably where I started, I live to trade another day, however; I am fruitless, and soon discouraged.

Patience+Discipline=pips…

Conduct analysis, be accurate, not all “possibilities” are good trades, look for “opportunities”, be willing to allow the market to move without you in it!!