The mistake that many traders make is having an unhealthy attachment to a single currency like the EURUSD or other instruments such as gold or oil , based on the name, and day trade away over multiple positions a day in search of riches. Little time is given to market conditions and trend structure and often trades are being places in low probability environments. It is an inconsistent, stressful and time consuming approach that usually leads to burn out of the trader or a blown trading account.
By first identifying which group of currencies are in trend (high probability environments) then simply requires holding and compounding a few positions which leads to significant growth of an account over weeks, months and longer. It is a timeless approach with vast benefits.
The TRY currencies are looking interesting. The TRYJPY and the USDTRY have already featured on our TradingView blog. The TRYJPY we are already short on and the USDTRY we are waiting for an entry point to go long.
The EURTRY is also looking very interesting and one we have a keen eye on.
Price broke out of consolidation that dated back to November of last year. Since the breakout, this has trended in a neat and linear fashion to the major round number level of 5.0000.
Given the distance from the breakout to this key , we chose to stand aside given the lack of appeal of risk to reward.
We are now waiting for price to break and close above 5.0000 before looking to place long trades. The distance from 5.0000 to 6.0000 is far more appealing in terms of reward to our risk and hence worth waiting for the correct set up.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!