There is a very high degree of risk involved in trading forex. I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.
- realize you are the weakest element of your strategy - an undisciplined trader can spoil the best strategy in the world,
- have your rules in place and follow each of them at any moment - your every rule should be the source of your trading edge, so it's worth millions of dollars - it's really worth following; all of your rules should be contained on one side of a sheet of paper, so you can read them every morning before trading; when you violate your rule, you make a mistake; if you have no rules, you don't know, when you made a mistake, thus everything you do is a mistake;
- know the odds of your trades, eg. based on statistical data you've collected; every trade should be within the confines of the rules and be based on the known (to you) probability of its success.
Why not go long AUDNZD? Because it's still in a down trend. Perhaps it will turn out to be a win, but I've still got higher odds going long USDJPY and short AUDUSD. Their trends are much more robust than AUDNZD's.