an idea, page-16

Let me first start by saying I don't discount trading with a demo account but I think people will have to be careful not to fall in the trap that doing well in a demo account would mean you would do well in live trading.

Now, I am not suggesting people quit demo account and use a live account but I do promote having some disincentives for yourself when something goes wrong in a demo account. For e.g. if you increased the distance of your stop loss mid trade without reducing the position size, you are not allowed to eat any chocolate. Certainly some of you don't like chocolate, so edit it with something you like. Disincentives bring about a little of the pinch of trading. You need this to really test your psychological discipline.

Anyone in regards to JPY cross rates, I thought I will just share this one that I am watching. I traded the EURJPY from 109.65 (10 pips above 109.56 double bottom) up to 112.85.

Currently, I am looking for a retracement of that move before taking another long position. Here's a chart that I just applied some simple Fibonacci retracements.




Let me first start with saying that the Stochastics on the daily is bearish.

Although the move at the moment looks like the retracement is complete, only a break above 113.00 will confirm. Instead of trading this position, I will suggest that the EURJPY will go through more pressure and settle in the Fibonacci sweet zone from 109.50 to 110.50 with a preference to 110.00. Once that happens, I will be looking for a swing high to trade the long to a new technical high above 113.75.

I like the long on CADJPY as well.

Have a great trading week all!