This last year was an eye-opener even after all the years I've been trading futures and forex. And while I try not to make the same mistakes, we're all human, even the "experts" have battles with internal and external psychology.  I think fat too many of us think a trend can go too far (e.g AUD/USD or the U.S. Dollar Index) and the temptation for picking tops or bottoms can be a hard one to resist. Luckily, because of my philosophy of using the 34ema Wave and letting market cycles dictate my trading strategy I found myself side-stepping these psychological landmines. But what would I like to do better?

Here are my 2010 resolutions:

  • Spend more time understanding external (market) psychology. This means data, news, and larger fundamental forces.
  • Always, and I do mean always, confirm anything I discover using the fundamentals with price.
  • Utilize the five minute charts more often when the larger market cycles or trends are not following through. This worked especially well for me throughout November and December.

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Raghee Horner is a private trader, founder of EZ2Trade Software, entrepreneur, and author of RagheeHorner.com. [More about Raghee]