Just over 4 weeks ago I went down with a bad bout of Flu, which meant I wasn’t trading and lost touch with the Forex markets. So I then had to get back in tune with with the markets before attempting to trade again. You may have heard of the term ‘Getting in the Zone’, well this takes a period of time to achieve. So this is what I did:
After being out of the markets for over 2 weeks, I just sat down in front of my trading terminal and conducted Top Down/Bottom Up multi-time frame analysis and noted what I saw and marked up my charts. I then watched the markets for 2 days during which I highlighted sweet spots in the market on the Daily/4hr Charts where I would be interested in trading if price went there, and waited and waited….
I also saw some potential intra-day trades, I traded several, but only entered with very small positions, which was just as well as the first one failed and the second only made one profit and the rest was stopped out at break even. Clearly I wasn’t in the zone yet!
So I waited some more and sure enough price did then get to those sweet spots I had previously identified and I took the trades.
The trades were:
- A multiple short on the USDJPY based initially on the 4hr time frame with lower time frame entries
- A short on the EURGBP (Daily set up)
- A long on the GBPCHF (Daily set up)
So by watching and waiting (Patience & Discipline) and getting back in tune with the market paid dividends.
Top Trading Tip: If you haven’t traded for a while, try and exercise patience and discipline, don’t just jump into the market on the first trade set-up you see as it may well fail because you are not in tune with the market. So spend some time getting back into the zone and it should pay dividends. If you feel you really must take a trade then enter with small positions only and see how the trade works out.