I have taken a long on NZDCAD as my seasonal's suggest a bullish January but this will depend on the risk on mentality for the New Year and clearly the fiscal cliff. However, the technical setup was there and the weekly low test may support the bullish case. Daily chart below:
As it's the New Year, most people will be re-writing their trading plan and looking back at what goals they have or haven't reached and why. A few traders have sent me their thoughts and plans and it is surprising to see they don't where they are going wrong. If they just looked at the words they used to describe their trading plans and their reasons on why they have or have not reached their goals, they would see the lack of confidence and consistency they have in themselves.
Words such as usually, sometimes show lack of a consistent trading system and thought process. Their goals and targets are only in the 'I want' category, these need to go in the 'I will' category. What was most apparent is most don't have a measurable plan of success, i.e a 3 month, 6 month and yearly plan. When are you going to increase your risk, put more capital in, etc...
Remember, trading is a business. Look back at how you have treated your trading business in the past year or so and would you have opened up and operated another business in the same way? Sometimes, because of the benefits of trading (low start up costs, ease of access) this creates a false precedence on trading being easy. The truth is trading isn't easy but it is simple!
As ever, I'll keep you updated when I can on anything I see setting up. In the meantime, have a fantastic New Year!
Really helpful and honest words. Thanks
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