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This has made me laugh all week.

Know your exit and entry before you make the trade. You don't have to trade every day. Wait for the right moments. Don't get emotional over a trade. If you are wrong, get out. Don't let a series of winning trades gives you a false sense of confidence.

I agree with what you posted regarding HOW to increase your risk - what I still don't understand is your rationale for increasing risk BASED upon previous losses.

If you get slightly more aggressive after a loss then you are not varying your bet size according to the market situation but rather according to your own personal P/L. How can you justify this? The market doesn't care how much you lost on your last trade.

Shouldn't your next trade have nothing to do with your previous trade, whether it was a gain or a loss? Shouldn't you increase your risk only if the situation demands it rather than trying to compensate for previous losses which are independent of the future?

Generally I agree, unless you're doing the carry trade. In theory, there should be no carry trade possible as the currency of the high interest country should decline vs. the currency of the low interest country but this theory is garbage. Carry with USDJPY for the past 2 years has been an...

If you want interest, don't bother trading bonds, just hold them. You can lose just as much from directional bond trading as you can with FX.

Closed my long for loss of 6 pips. It was a dumb, bottom-calling, trend-fighting trade. Not that I'm bitter because I'd be up now.... Spot trades at 1.1021

Long yesterday at 1.0997. Couldn't help myself.

Nice trade, nice patience.

Chood, I totally agree that long-term fundamentals are sitting in the back seat for now and will eventually roar back with a vengeance. Clearly the interest rate backdrop has supported USD vs. JPY in 2005. Even if the dollar does drop, I don't see the yen being the main beneficiary. With...

Good question. I think the answer also depends upon whether or not the increase in yields will offset the decrease in the value of the currency. If people are afraid USD will depreciate more than the yields will increase, they will not buy the bonds.

Hey, USD/CAD sellers - what's the status of your trades? Are you holding, adding, closing? Now at 1.1533.

closing my long at 119. pair is looking tired and with eur perking up, TIC data on Wed., I will look to re-enter another time.

I'm long USDJPY at 117.48 and holding for as long as she'll let me. The Japanese government is out there talking the BOJ down from their rate hike perch - they love the weaker yen and won't be willing to give it up so easily. It's not a coincidence that the Japanese economy picked up in...

I really liked Market Wizards by Schwager. It is a collection of opinions about how to trade from some of the world's top traders. One of the main lessons that I learned from this book was that there is no one way to trade - you have to find the style and the system that fits you.

I have experienced similar agony with this pair. I get scratched out 100 pips north of my entry and then half an hour later, it's right back where I entered the trade. Now, I only enter this trade (short) on the spikes higher.

I didn't mean to discourage him. If you can consistently go into the market and profitably pull out 3 to 6 pips, then you are in the minority of traders who have a 'feel' for the market. It is irresponsible to suggest that others can easily do the same.

Dunit, I started trading two years ago with the same philosophy as you - if I could just make 10 pips a day, I'd be set. The problem is, the market doesn't care about your agenda. There is no fixed amount of money that you can take out of the market on a consistent basis. Your goal...