Habit Stack Your Way to Profits

GM. Currencies & Coffee in session – where we trade in yawns for yays with our market insights.

Here’s what we have covered today:

☕ 4 Major Central Bank Rate Decisions

☕ Habit Stack Your Way to Profits

☕ CADJPY & USDJPY Setups

🗞️Movers & Shakers🗞️

We have a massive week of financial events ahead. Here's the rundown:

• RBA’s Policy Decision (Dec 6, 3:30 am GMT): After a surprise rate hike last month, the Reserve Bank of Australia is expected to keep rates at 4.35%. But, as we know, the RBA can be unpredictable, so stay alert for any surprises that could impact the Aussie dollar.
  
• BOC’s Policy Decision (Dec 6, 3:00 pm GMT): The Bank of Canada is likely to hold its rate at 5.00%. If they stick to this, the Canadian dollar might remain stable, but any unexpected moves could cause fluctuations.
  
• U.S. CPI and PPI Reports: Before we hear from Powell and the gang, we'll see the U.S. CPI (Dec 12, 1:30 pm GMT) and PPI (Dec 13, before the FOMC event). A drop in these inflation measures could reinforce expectations of Fed rate cuts, influencing the U.S. dollar and stock markets.
  
• FOMC Statement (Dec 13, 7:00 pm GMT): All eyes will be on the Federal Reserve's statement. The market expects the Fed funds target to remain at 5.25% – 5.50%. Any hints of future policy changes could significantly impact the U.S. dollar.
  
• SNB’s Policy Decision (Dec 14, 8:30 am GMT): The Swiss National Bank is expected to keep interest rates at 1.75%. Watch for volatility in the Swiss franc around this time, especially if there are hints of further rate increases.
  
• BOE’s Policy Decision (Dec 14, 12:00 pm GMT): The Bank of England is likely to keep rates at 5.25%. Any unexpected moves or hints at future rate cuts could cause swings in the British pound.
  
• ECB’s Policy Decision (Dec 14, 1:15 pm GMT): The European Central Bank is expected to maintain interest rates at 4.50%. The Euro could see volatility based on the ECB's tone and any revised economic projections.
  
• China’s Data Dump (Dec 15, 2:00 am GMT): Keep an eye on China's economic updates, including industrial production and retail sales. Stronger-than-expected data could ease global growth concerns and affect commodity-related currencies like AUD and NZD.
  
• Global PMI Updates: Towards the end of the week, we'll get a glimpse of business activity across major economies. These PMI updates can give us early signs of economic health and inflation trends, influencing currencies globally.

Habit Stack Your Way to Profits

Today, we're diving into a powerful strategy that can elevate your trading game and boost your performance. As a trader, developing a routine that aligns with your trading goals is essential for long-term success.

'Habit stacking' is a concept popularized by James Clear in his book - Atomic Habits. It is a proven method for creating positive behaviours and enhancing productivity. By leveraging the concept of habit stacking, you'll learn how to integrate smart trading practices into your daily routine seamlessly.

1. What Is Habit Stacking?

Habit stacking is a powerful technique rooted in the idea that incorporating new habits into your existing routines can make them stick. It's about leveraging what you already do consistently to introduce positive changes effortlessly. In trading, where discipline and consistency are paramount, habit stacking can be a game-changer.

For instance, if you already have a morning ritual of checking the news or sipping your coffee, you can stack your trading routine onto this existing habit. This way, trading becomes an integral part of your daily life, making it easier to stick to your strategy and maintain discipline.

2. The Three Components of Habit Stacking

To implement habit stacking effectively, you need three key components:

• The Current Habit: This is the habit you already do consistently, like your morning coffee ritual.
• The New Habit: This is the trading-related habit you want to instil. It could be something like reviewing the market events for the day, managing your open trades or reviewing your watchlist.
• The Trigger: This is the moment or action that bridges the current habit with the new one. It's what prompts you to seamlessly transition from your existing routine to the new trading habit.
  
  Determine what naturally follows your current habit or what you do immediately after. For instance, if your morning coffee is your current habit, you can make "finishing your coffee" the trigger for your new trading habit.

3. Example: A Morning Routine

Let's say your current habit is enjoying a cup of coffee in the morning. Your new trading habit is reviewing your watchlist for the day. Here's how you can stack them:

• Current Habit: Morning coffee
• New Habit: Review the watchlist
• Trigger: As you finish your coffee, take out your laptop and review your watchlist for the day.

Why Does It Work?

Habit stacking works because it capitalizes on the power of consistency and routine. By attaching your new trading habits to existing ones, you're more likely to follow through. Over time, these actions become ingrained in your daily life, significantly improving your trading discipline and overall performance.

So, there you have it – a practical, actionable tip that can potentially transform your trading journey. Whether you're a beginner or a seasoned pro, habit stacking can be your secret weapon in building a more structured and successful trading routine. Start small, be consistent, and watch as these stacked habits propel you toward trading excellence.

SIP,  LAUGH,  TRADE 😁

📈LATTE LINEUP📈

We are approaching mid-December, and the markets are definitely lacking volume from what I've seen. That being said, there are two potential setups to keep an eye on. I recommend taking less risk per trade or not trading at all.

-CADJPY-

HTF (12-HR): The price recently formed a lower low, breaking the previous support to the left. I was waiting for the price to pull back to retest the broken support as resistance. We are currently at the 61.80% Fibb level, which also aligns with the strong support looking left, and the sellers are showing signs of a return through the rejection candle. Let's go to the shorter time frame to look for an entry.

LTF (30 mins): On the shorter time frame the price action is not clear yet. This is usually the common theme of December as I have previously mentioned. I'll be waiting for some clear structure to form to see a shift in market structure.

Once we break a previous LTF support and retest as resistance confirmed by bearish rejection or engulfing candles I'll look to take a sell position. My stop loss will go above the previous highs and target the previous HTF low.