End of Week Review of Trades from the high probability opportunities for this week in Forex, Indices & Commodities.
Click on the video to watch the full breakdown
Another week where the markets test your patience. Sometimes you wait and wait, then three buses come along at once. Other times you wait and wait… then still no buses come.
Regardless of time, of how long it takes for a setup to appear, waiting is a must. Even if the setups looks close to being ready, it must actually be ripe first, before engaging.
Here are the results for this week on our shortlisted charts:
- GBP/USD – no entry
- GBP/JPY – no entry
- CHF/JPY – Breakeven
- GBP/CHF – no entry
- AUD/CAD – no entry
- AUD/NZD – no entry
- EUR/GBP – Win
- EUR/CAD – no entry
What can we learn from this week?
You may have heard that Warren Buffett’s right hand man, Charlie Munger, has passed away this week. He was a wise investor and the lessons he left behind in the form of his advice in speeches, is applicable to this week’s charts. Let’s go through 3 highly valuable – and profitable if you use them – investing/trading axioms.
The great investors are always very careful. They think things through. They take their time. They’re calm. They’re not in a hurry. They don’t get excited. They just go after the facts, and they figure out the value. And that’s what we try to do.Charlie Munger
In trading, don’t rush. Have a calm, peaceful, methodical state of mind. Don’t add your emotions or other opinions onto the charts. Go after the facts the chart is telling you.
The Big Money Is Not In The Buying And The Selling But In The Waiting.Charlie Munger
Here, the idea is that not only is it worth waiting for the best setups in trading, but you also lose money when you don’t wait and take unnecessary risks participating in the markets. When you lose money in these constant in-between trades, you end up having to make the money back. Not to mention the negative psychological impact it has on you. Therefore it’s not about how well you can buy or sell a market, but how well your waiting skills are.
Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices.Charlie Munger
Let’s translate this one into the trading frame: “Don’t buy average setups at low prices; instead, buy fantastic high quality setups at OK prices.” The main focus Charlie is pointing to here, is the fact that it’s preferrable to wait to know the direction of the market, without worrying yourself too much about having the perfect entry.
More Golden Wisdom
If you want to read up more on Charlie Munger, it’s well worth taking the time to absorb his sage advice.
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
Image by katemangostar on Freepik
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the risk that goes with it.)