Trading the Forex markets (Foreign exchange or FX markets) requires a willingness and ability to take risks. It is a different skill to being able analyse the markets from the comfort of not risking money. Yet, blessed is the person who can combine his trading skills with analytical skills, because he will then be able to identify the sweet spot in the markets which offers great rewards while risking a small sum of money.
In this (probably final update for some time) I demonstrate how one could have anticipated several key levels while trading the EUR/USD. Go back to the previous update on 25th January and read the comments and the chart carefully. Compare it with what I have published today. You will then realize the value of using Elliott Wave analysis while trading FX.
It is perhaps useful to point out here that my wave count (that has seemingly worked) could still be completely wrong. But it really doesn”t matter for the trader who is following the rules and guidelines of Elliott Wave Principle. What matters is the markets have turned within an acceptable range of the projected levels; and more importantly, moved significantly in the direction that was forecast. Using the techniques that I have applied on hundreds of real-time examples in this blog, a trader could have profited immensely. Of course, if his stomach was unable to handle the pressure, he would not have positioned correctly, or he would have entered the markets too soon, or too late, and if his stops were close by, they would have been triggered. The moral of the story, then, is this. One has to use technical analysis to identify the likely levels where a low-risk trading opportunity will show up. The trader has to be patient till such an opportunity presents itself. And when it does show up, he needs to have the courage to pull the trigger, and stay with the trade till his view is proved wrong.
I wish you, the reader, the best of luck. Use this blog as a living book. I might update it on and off, but no guarantees. If you are subscribed, you will get the update by email.