The power of participation.



This is my next subject. It flows concurrently with my points on entry. In my previous posts I have explained what I perceived as the reason why entry is important however it shouldnt be the only focus of your trading.



Alot of traders tend to focus 'pinpoint picture perfect entries' and 'razor sharp profit producing exits.' My personal take on entry is that as long as you clearly define the main momentum and have the ability/skill to see where you currently stand in that momentum this will give you the first reasons to why you should enter/exit. You need to read the road signs.



I understand entry/exit plays an important role if you aim for constant 80pip take profit with 40pip stop loss. You are looking too closely . Take a step back. What you conceive as 80pip profit is only a ripple in the ocean and you have just stopped yourself looking at the bigger picture and settled with just entree. Unknowingly you might still be focusing too much on todays profit or this weeks profit .



You are forgiven for sloppier entries when you start but as long as your position is towards the main trend you are already in good shape. Entries will improve over time. As far as entries are concerned, we want minimal risk entries (do your homework) that will give that position an opportunity to reach its full potential hopefully 8000 pips later .



And you will reap exponential rewards if you let it happen. Nobody knows where the market will be heading and this shouldnt hinder you in anyway. You need to participate to what is happening . You need to be in the market to make it happen. If its up then BUY, if its down then SELL. Yes, you have heard it before but do you know what it means and how to implement it?



Every month I receive an email from my regional offices showing me how much it would cost to buy another 100,000 units of a particular good to be imported. I take three looks. One look at the current price i need to pay and two looks at previous prices i paid before which is price one month ago and price one year ago. If its cheaper I place an order and sign off on the cheque and thats that. If its not then I dont. Then I dont sit there and twidle my thumbs and look exasperated. I ring the appropriate regional office and tell them to try export more of our goods to that particular country. If this blip of price fluctuation continues for months then I would shift my operational views with that particular country from importing to exporting.



I request that you think about my story. You might learn something.



Currently I have bundles of positions. Just like my business I categorise positions accordingly even though they may be from same pair of currency. Each bundle is different to each other and I treat each bundle as each individual entity. As long as that particular bundle exits completely with profit then its mission accomplished. I have bundles of positions that are sell and bundles of positions that are buy. They are not offsetting each other as you might perceived to be. Yes they may be from the same capital pool but I treat them as two different scenarios.



To help you understand, in some weekly trend, you will find that there are corrections. And this correction can last from days to weeks even. Even though last 8 months was down, the price right now is telling you up. Go with the flow and participate . Be in the action. You can speculate on the sideline with your certified indicator/system or be in the game and bring home the trophy and the prom queen home.



Review a week or two later (or more preferably) and you will see that your new legs becomes a solid profit making machine. This set of new legs is a different group to your main group of positions on the main trend. Keep your bias on the downtrend as this was your main trend for the last 8 months but you will have opportunities to make profit on the correction. Just like my export and import business.



Once the trend resumes, your main group of positions will continue producing profits and you have opportunities to add positions to this group once again with greater probability of surviving.



When I comeback from my dinner arrangement I will try and answer the PMs you kindly sent. Thank you



Moving on.

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