Here’s a Lesson in Discipline for You Dollar Bears
In order to end up as a successful trader at the end of the year there is one requirement that supersedes all the others – namely discipline.
Discipline is needed to follow the method/models chosen beforehand. In a summer FX market like the present’s, where the doldrums are blurring everyone’s sight, the hard part is to stay disciplined.
Looking at the dollar in general right now, the ongoing range trading is beginning to unnerve many a trader. Will the dollar continue it’s climb from the present no-man’s levels, or will it finally begin a correctional phase? Minds of the traders are split and tend to change from one hour to another. Knowing that my own worst enemy as to my market performance is none but myself, I need to remind myself and our clients time and time again to stay patient and stick with the method/models chosen in advance.
In this USD-case I surely admit that the overall market sentiment is clearly in favor of a continued USD-rise. Hence what I — and other dollar-bears — need now is the guts to do what is right, even when it surely feels wrong. And technically it surely seems right to sell the dollar at the present levels. Sentiment indicators do flash a red light as to further dollar strengthening from the present levels. Technically, a correction would also be beneficial for the present uptrend on the USD (downtrend on EUR) in the long run. So knowing that corrections are very dangerous, I still intend to play tough as long as the EUR/USD does not close below the previous low at 118.70 and the dollar index as such does not close above the previous top at 90.77.