Hello my dear friends!
How are your holiday festivities this year end? Hope you are enjoying it with good health! Holidays are good to take a good rest, see old friends and enjoy good company! Enjoy this with responsibility and for sure it will be on your memory as a good remembrance for the rest of your later
Now giving attention to our charts again, EUR/USD was bullish last week. I did nothing on my charts because low volume and liquidity was in motion but Friday showed us a big bullish move
trying to cross 1.3800 just to bounce back inside the range between 1.3600-50 and 1.3800-30. On our last trade plan I told that if the setup from December 20 to 26 was happening on normal market conditions, for sure I would buy here but holidays gave us no choice but to stand aside watching the low and unpredictable volume. Probably this week will be the same as last one. We are in the middle of the holiday season and hence volume and liquidity will probably return to normal only from January 5, 2014.
Taking a look at the EUR/USD monthly chart and you´ll notice a bullish EUR/USD entire year. I´ll start 2014 trading bullish and eventually trade bearish corrections like we did last year. But the overall market for EUR/USD remains bullish at the very start of a new year.
In my live trading account I had no growth as I expected due to many errors I did. I´m trading fully this account for two months and my anxiety still in play left me with a very little profit by the end of 2013. I expect to solve this next year and survive until 2015. I have to tell you folks, if I was good trader as you believe I am, I´ll be a rich man today! But we´re all learning here and I learned a lot last year.
With normal market conditions, my trade plan would be to wait for a break over 1.3800-30 with a daily close above this area and good candlestick confirmation above the black trend line that you see in the chart. Once set a bullish trade, the possible target is 1.3990-1.4000 for around 180 pips profit. Remember that money management is the tool that will allow you to profit in long term in the market or at least survive while the conditions are not on our favor. For the trade plan above if you use a stop loss of 60 pips, and a possible target of 180 pips you´ll have a 3R your initial risk. Each time you reach 1R your initial risk trail your stop loss giving the market space to breath.
That is it folks. Do exercise caution due to the low volume and big spikes as warned by our dear friend The Forex Koala. Any doubt, leave the trades to next year. Markets will be there waiting for us with better opportunities.
Enjoy your deserved vacations and holidays with responsibility! A trader´s discipline isn´t just for the markets, but for a living! For sure your quality of life will be better and better each day!
Hope to see you next week in 2014 for big and profitable trades my friends!