Let's get moving: I've got an update for you on the India project, a discussion about the Euro, a rage against excessive planning, and an update on how Kurt Hanks is doing (hint: he’s doing better than I ever imagined).

I am doing a webinar series for charity on April 30/May 1. Guest speakers / instructors include Joshua Hauck - the best short term trader I’ve ever known – and Raghee Horner, author of Forex Trading for Maximum Profit. More speakers are lined up as well. I promise the webinar will teach you new techniques, profitable money management strategies, and more. And all the proceeds go to charity. You can sign up here:

http://www.robbooker.com/giving

Your donation will still be 50% matched. And we’re in first place to win an additional $5,000 because we have the greatest number of donors. Please help today!

Here’s a 2 hour chart I looked at today. You can click the chart to enlarge the image.

I’m watching the channel on the above chart. If the pair can break out and close beyond the top barrier of that channel, or the bottom, I believe it could travel at least 500 pips in that one direction – that’s the width of the channel itself. It could make that move within a week or so of the breakout. On trades like this, I’m happy to enter the trade if the pair breaks and closes beyond the top or bottom, and close the trade at a loss if the pair closes back inside the channel.

What’s happening right now? The Eurozone part of the equation here is driving down the pair. From a simple perspective, we could say that both the U.S. and EZ economies are in trouble. But I still see signs that the European Central Bank has more easing to do on interest rates (they have room to do it, too, with the base rate just under 2% right now). Easing the interest rates is inflationary, and inflationary moves devalue a currency. If this scenario plays out, the EUR/USD could easily fall back inside the 1.20’s.

However, the European Central Bank stands firm, and the world economy and equities markets continue to improve, that’s bullish for risk, and that’s bearish for the dollar – a safe haven currency – and the EUR/USD could easily rise back up to 1.4000.

What happens next? It doesn’t matter. We’ve got a channel and a plan, and we can now just sit and wait.

This weekend I re-discovered the frustration associated with endless planning and never accomplishing. While I can freely admit that I make a ton of mistakes in all areas of my life, I’m obsessed with getting stuff done. I get frustrated pretty quickly with meetings, and with long planning sessions, and with pointless discussions meant to map out an uncertain future. There’s a difference between getting ready for the worst (advance emergency planning) and having meetings designed to predict what is going to happen next.

The markets are uncertain, and the very best traders are comfortable with that uncertainty. They are happy to deal in probabilities. Satisfied that sometimes, a clear path forward doesn’t present itself and we either need to stand aside or swim in uncharted waters.

But if you’d rather make as little money as possible, and annoy the hell out of your trader friends, here are some things that you can do:

• Write an endless 30-page trading plan. It should be so detailed as to tell you what time to get up in the morning, what to eat, and what to wear. It should go into huge detail about what kinds of trades you take and show you every example of that kind of trade. Then each day, you should read the plan and check the plan over and over. The plan will strangle you, of course, and when something goes wrong in the market that is outside the scope of the plan, you can lose a bunch of money, and then spend the next 7 weeks re-writing the plan to include the new contingency plan. Of course, that contingency will never arise again, but something else will.

Here’s the alternative: have a new, short trading plan every day, written on a notecard. Tape it to your computer monitor. Write on it the maximum risk you’ll take, a few words about your psychological state, and maybe a goal for what you are trying to achieve. Then at the end of the day, write some notes about your performance, some things you want to improve tomorrow, and then file it away.

• Buy $7 million worth of computer equipment before you make any money. Go out and buy the most expensive computer setup you can. Get a desktop and a laptop. Buy expensive software. Design an entire office with new furniture. You’ll be playing the role of a trader even though you’ll not have made much money yet.

Here’s the alternative: borrow a computer or buy a cheap one. Trade a Starbucks or a place with free wi-fi. Buy nothing expensive. Earn the money to improve your equipment. People tell me all the time that they need the best equipment that won’t “go down” when they are trading. I say: get a cheap cell phone and be able to call your broker if something goes wrong. An expensive laptop and nice furniture are not going to trade for you. They just take money out of your trading account that you could be using to produce returns.

Summary: only spend money on what is going to help you make more money, or what is going to help you spend less money.

In trading, very few things matter. Have a simple plan. Have a simple, inexpensive setup. Risk as little as possible.

A few weeks ago the newsletter discussed Kurt Hanks – my friend and former student who produced a 661% gain last year. You can re-read that newsletter here:

http://www.robbooker.com/newsletter/03082009.htm

Some of you might wonder if Kurt could keep up that performance. Well, he’s exceeded it. He set a goal to make 50,000 pips between the Orange County seminar and the London Seminar. And he’s at 40,428 pips right now. If you want to see his account statements, ask him questions, and meet him in person, then please consider coming to the London or Sydney seminars.

For the London Seminar, click here.

For the Sydney Seminar, click here.

If you've been trading well lately, just remember that eventually some bad things can happen. Don't get euphoric. Don't increase your trade size based on how you feel, or because you think you've found the best thing ever. Just stay consistent.

If you've had a bad run lately, then you might benefit from taking a break. Don't make a bad set of trades worse. Sometimes just a day or two away can really help to settle you down. Even a month. Remember that the market will be around next week, and next month. You don't have to do anything tomorrow. You can hold off, and get your mind in the right place, and it will all be here for you when you get back.

Happy trading!