Forthcoming Week!!

Hi All,

So what does the forthcoming week hold for us? As said in this blog at the beginning of last week, the GBPUSD did have a big drop which was long overdue. Lot of people had been predicting this drop for the past 2 months but the market showed only two weeks back that the drop was coming and that was why i had specified in the blog last week that there would be a drop and it did come along.

I feel that the GBPUSD will drop further in the coming 2 weeks as the news coming out of GB would show the bad effects of a weakening dollar on the British economy. As for the crosses, that was something that was not expected as it started only on the second or third day of the week and there was nothing fundamentally changed over those days.

Anyway, for whatever reason it might be, there was indeed a huge drop in all the crosses which made trading very easy last week. That is why it is always good to trade with the trend and have strict stop losses. The trend was down last week and all that a trader had to do was go short and wait for them to go down as that was the trend. If indeed a trader went long to trade the pivots and supports, strict stop losses had to be followed as we are going against the trade. With this knowledge and strategy, there is no way that a trader can lose money under such conditions.

It is good to make 1000 pips in one trend and again 1000 pips in the opposite trend and lose 200 pips during the change of trend rather than lose 1000 pips trying to trade against the trend.

One thing which every trader should learn is not to outguess the market. No one is bigger, better or smarter than the market. So stop outguessing the market and try to react to what the market does and says. The quicker you react, the more money you make. If you try and outguess the market and predict something which you feel might be coming will only leave you with egg on your face.

So just keep watching the market movements and just try to ride the trend and the wave and you should be fine. Dont try to act too smart and think that you can outsmart the market and catch the very top and bottom. Sorry, no one can do that. So just trade the trend and enjoy the pips.

As for what the crosses would do in the forthcoming week, i have not seen anything change fundamentally over the last 2 days and so i think initially atleast the fall will continue. Once again, the market makers have been very smart and have placed the crosses at important supports and it remains to be seen which direction they take the market in.

Happy Trading!!!