That sounds like a great idea unless you are already profitable for the month of February. If you are, then you should stop trading immediately. Shut it down. Preserve your profits.
Getting the pips is easy (if you don't believe this, then you are never going to be successful). It's keeping the pips that is really difficult.
Most people I’ve taught in the past 3 years would say yes. But you know what? Most traders out there can’t bring themselves to just end the week with a few positive pips. They have a misconception that they have to end the week with 200 pips or something. That’s insane.
If you’re a 20 pip a week trader, then so be it. If you are a 100 pip a week trader, then that’s great too. Be your best trader.
But most importantly, be yourself.
The fed funds rate now stands at 4.5%. It appears that it could get as high as 5.0% now.
The problem with the statement, for traders, is that the Fed is saying again that, “In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.”
What this means is that every major economic report (including this week’s ISM report tomorrow and the Non Farm Payroll report on Friday) are going to have a big effect on the USD. News will cause beastly movements in the major currencies against the USD. Especially economic reports that show actual numbers that are significantly different than the expected numbers. This causes lots of back and forth movement. This is frustrating for many of you who enjoyed trading in trends for the last 3 years.
During this time we need to be aware that the major currency pairs could trade in a range – all the way through March of this year. And it also means that the eyes of the world will be waiting to hear what the new Chairman of the Fed, Benjamin “Watch Me Single-Handedly Blow Up the U.S. Economy” Bernanke will have to say when he chairs his first meeting in March.
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