Featured The Daily Edge

The Markets Owe You Nothing, Get Over It

The latest TT setup that was made available in the GBP/AUD last Friday, manifests the difficulty as of late to materialise into profitability the amount of work one puts in. This takes me to the thought of the day that I want to stress. Unlike other professional endeavours, when trading the markets, you will realise that hard labour doesn't necessarily correlate with rewards.

Let’s get started…

Scan of the Forex market

To see an expanded version, right-click and select ‘open link in new tab’. The indices show the performance of a currency vs a G8 Forex basket. Indicators are available to use these measures via Tradingview and MT4.

 

By checking the performance of currencies, what should jump out to anyone, is the out performance of the CAD after a blockbuster jobs report. This piece of fundamental data led the market to aggressively re-adjust the valuation towards the currency. On the contrary, the US jobs report can in worse than expectations by 215K jobs, causing a directionless wobble in the USD.

By analysing the currency market conditions, I am the first one to admit that the dynamics to trade the TT pattern have been far from ideal to get rewarded. While the activity in trading the strategy has too been subpar (trades more sparse) when compared to the first 9 months of the year, what has been greatly reduced is the ability to make profits.

Therefore, in today’s market report, I find it very fitting to be reminded of the following quote I read by Richard Bargh, a futures trader featured in the latest Market Wizards book. Richard nails it when stating that “opportunities are dispersed. You might have an opportunity today and then have to wait 3 months for the next one to come about. That reality is hard to accept because you want to make a steady income from trading, but in doesn’t work that way. In 2017, nearly all my profits came from two weeks in June and one day in December…”

Fortunately, the TT pattern taught through the Global Prime academy website, still provides a minimum number of trading opportunities per month. However, the reality has been that even if the criteria continues to be met in occasions to gain exposure in a number of markets, the conditions to be paid for the typical 3:1 RR targets we aim for have been rather poor.

This takes me back to the point Richard makes above. We simply cannot control these outcomes. Instead, the best we can do is to tweak our profit taking a tad to accommodate for these conditions, but most importantly, keep making ourselves available to the market until the dynamics shift in such a way that the market will, once again, reward us back. Once the type of order flow dominating the FX space becomes more fitting to exploit the TT edge, this stage shall pass and we’ll find more profit-taking consistency.

Case in point, the latest TT setup that was made available in the GBP/AUD last Friday, manifests the difficulty as of late to materialise into profitability the amount of work one puts in. This takes me to the last thought of the day that I also want to stress. Unlike other professional endeavours, when trading the markets, you will realise that hard labour doesn’t necessarily correlate with rewards. This can be frustrating for many as they feel the market owes you that profit because how much time you put in. Get over it. The market doesn’t care.

Instead, the best shot you have, whenever you see yourself whining because the market has not delivered the profit you wanted, is to come to the realisation and fully embrace the random nature of how gains ad losses are distributed. Let go of the things you can no longer control (price hitting your target) to the extend that you can your trading process. Keep focusing on the latter and always remind yourself that the upside is taken care by the market forces and that you have very little say from the moment you enter and deploy your trade management technique.

Hot trade of the day

In this section, I pick a market or several ones that presented an opportunity based on the concepts I teach. My video analysis below elaborates on the logic behind the trade.

Economic indicators & events

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video. The indicator allows you to save time and avoid mistakes.

Source: Forexfactory

Important footnotes

Announcing The Global Prime Academy. Check out our brand new Academy website launched earlier this week. Let me give you a brief background on why we’ve created the Global Prime Academy. The universal praise I received about my trading and content I produce has been incredible.

However, clients at Global Prime were frustrated to find a structured way to absorb all this knowledge. Part of these golden nuggets are now going to be encapsulated in easy to follow and digestible lessons. By the end of the course, you will be given a set of strategies to take your game to the very next level. The first delivery focuses on the ‘TRAPPED TRADERS PATTERN’.

About the author

Ivan Delgado

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.