Oct 302008
 

I had looked for Euro to find good offers at 1.3045 levels and recommended a sell at 1.3037 with a stop at 1.3057. The currency did not even pause at either level and reached a high of 1.3294. Every once in a while we will encounter such a situation, and you need to be prepared for it. The lesson here is (a) trade a position size that will keep you in the game  and (b) always keep a stop. The second point is especially important because many people think that a good analyst can ‘predict’ the market accurately most of the time. Unfortunately this is not true, What I am capable of doing is to give you a carefully evaluated report of what I think the market is likely to do. The key words are “think” and “likely”. True, I have been successful at calling lots of turns accurately. But there is no guarantee that the next call will be correct. So you really have to assume that every call I make is  judgmental, and hence the amount you risk should be just what you can afford to lose on that trade, yet keep you ready to take the next call! Here is your chart on Euro for today with comments on it. Enjoy.

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