I recognize that I will make many decisions every trading day
I recognize that I every day I will be wrong
I recognize that there may be days, weeks and months when I will lose money
I recognize that the best traders in the world make 100-200 pips per month
I recognize that trading is unlike any other job in the world
I don’t receive a salary
I don’t collect commission
The money I earn can be taken back by the market
I recognize that trading is never just about money - it is about play and discovery and the intellectual challenge of understanding the market
I recognize that in order to indulge in the experimental process of trading I need a separate trade account that I will destroy many times over
I recognize that all backtests are false but necessary to establish a baseline for a strategy
I recognize that demo trading is useless in live markets
I recognize that risking more than 2% on a trade will wipe me out eventually
I recognize that markets have only two states - range or trend - and that no strategy can be successful in both
I recognize that tactics are more important than analytics
I recognize that if I fight the market I will always lose in the end
I recognize that no single trade should make me or break me
I recognize that I will never trade without a stop
I recognize that I will never add to a losing position
I recognize that I will never trade in anger or revenge or fear
I recognize that I will inevitably fail the three rules above, but I vow to fail them less and less every year that I trade
I recognize that surviving the game is my best chance of winning.
I recognize that I every day I will be wrong
I recognize that there may be days, weeks and months when I will lose money
I recognize that the best traders in the world make 100-200 pips per month
I recognize that trading is unlike any other job in the world
I don’t receive a salary
I don’t collect commission
The money I earn can be taken back by the market
I recognize that trading is never just about money - it is about play and discovery and the intellectual challenge of understanding the market
I recognize that in order to indulge in the experimental process of trading I need a separate trade account that I will destroy many times over
I recognize that all backtests are false but necessary to establish a baseline for a strategy
I recognize that demo trading is useless in live markets
I recognize that risking more than 2% on a trade will wipe me out eventually
I recognize that markets have only two states - range or trend - and that no strategy can be successful in both
I recognize that tactics are more important than analytics
I recognize that if I fight the market I will always lose in the end
I recognize that no single trade should make me or break me
I recognize that I will never trade without a stop
I recognize that I will never add to a losing position
I recognize that I will never trade in anger or revenge or fear
I recognize that I will inevitably fail the three rules above, but I vow to fail them less and less every year that I trade
I recognize that surviving the game is my best chance of winning.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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