$EURUSD Thinking to long from 1.4391 towards 1.4570

EURUSD looks to be rebounding with zigzag wave (A)-(B)-(C). As I put
parenthesis, this is my secondary count.
The primary count is speculating that the current zigzag is just the
leg A of A-B-C.
Either case, the current zigzag will complete its shape with C wave
whose is to be impulse wave.
With this in mind, I am thinking to bid small on EURUSD around 1.4391
with 1.4340 stop.
My profit target is 1.4570: same distance from the bottom to label (A)
as you may notice.

Elliott wave analysis of the week - December 27, 2009

I gave back to the market by just a little (0.5% of the capital) with the last short position in AUDUSD. With this loss cut, I decided to sit back and see if the current price is on the course of the black 4th wave:

EURUSD seems clearer to me to count the wave for some reason than AUDUSD. I believe EURUSD started the blue underline wave 2 that whose scale in price and time should be comparable to the initial wave down (blue underline 1). If this is the case, the rebound of EURUSD is just a begining, and it should continue towards mid January. I am planning to long EURUSD from purple .B to .C (In zigzag waves that traces as A-B-C, the C wave is likely to be an impulse wave, and it would be easy to trade.):

How to "sit tight" in the market

I have been reading “ Reminiscences of a Stock Operator” – reminiscences of the legendary speculator Jesse Livermore.

Among his words of wisdom, this is the line I have been repeatedly engraving in my mind:

“The big money is made by sitting, not thinking. Men who can both be right and sit tight are uncommon.” 

The first condition is my tape reading is correct. The second condition is to go along with the speculation and just sit tight until the result becomes clear. 

So far, I came to the point that I do not have second thought when deciding the time to enter the market after waiting for the real chance…thanks to Elliott wave analysis.

The real issue with me is thereafter.

Whenever the market did not accelerate and were rather sluggish, I almost certainly used to start hesitating, and went out and in the market without a good reason.

The recent winning rate of my trading record is over 60%, so if I look back now, those hesitations were nothing meaningful, and the right move was not to jump out of the market unless the loss cut order that had been set at the first place was triggered. Keeping on taking glances on the chart was a total waste of energy.

So, from now on when I make trading plans, I will also consider for how many hours I shut the chart down from my eyes after setting limit and loss-cut orders.

Keeping me from opening the chart – I guess that is the only way for me stop being hesitant, and be able to just “sit tight”.

Real time trading tweets

The plan in the article may get rejected any time, so please check out my tweets on Twitter.

Current risk exposure:

Rational Move always use stop loss orders, and this is the worse case potential loss over the capital for the currently open positions. This is unrealized loss is less or equal to the risk exposure.

Capital growth

From recent 100 trades (%) The growth right before the 1st trade is set to 0%.
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From recent 100 trades (%)
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Total returns

Since inception
(Aug 10, 2009)
Year-to-date Quarter-to-date
0% 0% 0%
This is a normalized value: the return on each trade is normalized against the capital just before the trade execution. This way, it is eliminating the effect by the capital change from deposits and withdrawals. The calculation thus reflects the trading performance of each trade. The value does not contain unrealized profits and losses. RM's trading strategy never risks more than 5% of the present capital. Not including subtraction by tax.

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December 2009
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