Many traders have good methodologies for determining an appropriate time to take a trade. Their system actually signals when to get into or out of the trade. Then, they second guess the system and don't do it. This is a lack of commitment. And it stems from a lack of confidence.

Commitment means going for it, even if there is a chance of losing money.

Do you remember the story of the Chicken and the Pig.

Most traders experience similar emotions. Exhilaration when a trade goes your way, disappointment or stress when it goes wrong. No matter how many times you trade, these emotions are hard wired into your psyche. Whenever a negative emotion is experienced your confidence takes a hit. When trades go your way the natural reaction is to want to trade more often. Both these experiences can induce wrong trading habits.

Citibank is now offering online trading opportunities. Their product is called CitiFXPro. Their online trading platform is powered by SaxoBank's technology, which is easy and comprehensive to use.

They offer fixed pip spreads and 50:1 leverage. Minimum account size is $10,000. The Citibank brand almost assures one of good liquidity on most traded currencies and ethical market making practices.

The trading facility is currently only available in the USA but according to a Citi spokesperson, it will be rolled out to Asia and Europe within the next year.

Clearly it's the uncertainty of the trade. A trader is always confronted with a lack of confidence about the future. Even if a trader has a system of buying at support levels and selling at resistance, or buying or selling breakouts, there is always the uncertainty factor. No one really know whether support or resistance will hold

In a previous articles, I described developing a trader's mindset and putting together a mission statement.

What Traders Can Learn From the World's Most Successful Companies

Yogi Berra once quipped; "You should only buy stocks when they are going higher. If they are not going higher then don't buy them." This funny comment is the quintessential problem in all markets. How does one know when something is selling at a low price, so they can buy it and then sell it to someone else at a higher price? In this article, I will show you a path that is not based upon a trading method, but upon the process of executing your method.

On Sunday our first set up never materialized. Bear Stearns collapsed causing some panic selling of the dollar and the need for the Fed to come to the rescue. Then on Tuesday the Fed was expected to cut the discount rate further, which they did, sparking a rally in the stock market and some good dollar buying. The anticipated trades presented themselves and were ripe for the picking.

In the overnight markets, our dollar-yen trade above 99.25 was never triggered. The dollar sold off against the yen amidst the Bear Stearn crisis but found support at 95.70. I will continue to look for a bounce at around this level, amidst severe speculation that the central banks might intervene to remove forex volatility. The trend is still down but there are opportunities for 20 to 40 pip trades at extreme oversold levels.

Last week, I pointed out an opportunity for a day trade in the USDJPY and a possible longer term trade. The day trade was good but the selling pressure continued forcing the USD to go below 100 Yen. This is the first time in ten years and a move that is causing concern to Japanese exporters. 

If you notice that the GBP also sold off against the Yen, it indicates that the general Yen strenghtening has something to do with the unwinding of the carry trade.