We are stuck in this back and forth sideway range for the last few days and I can't see much changing. Once again the word "R" was used in describing the US.

The summer is winding down and as we ease into the long weekend a new mentality will be entering the markets. Expect strong trends to start to form in the first part of the month.

You should not care whether the trend will be up or down unless you are using the forecasts to get out of stuck trade you may be in. And on that note try not to get yourself in that position. In this market , take profits quickly by going for 25 to 30 pips, or protecting them and not let a good trade turn into a bad one while you hope for more return.

I strongly advise that even when trading with real money to try scenarios in demo accounts. Scenarios that are based on discipline more so than currency picks. Many of you who are subscribers are either new to Forex, or have frustration in developing a winning system. The lack of discipline is the number one reason for failure. Ask yourself these questions.

1. Do you increase your lot size after a series of winning trades?
2. Do you panic after a losing trade and jump right back in only to lose again?
3. Do you second guess yourself and miss a winning trade?
4. Do you feel you always have to have a trade in the market?
5. Do you pile more currency (pyramiding) into a losing trade thinking you can average out in a winning position?

Any yes to the above will lead you to the road to disaster.

So how does discipline come into play? Discipline is a HUGE part of being successful with our forecasts.

Ask yourself this:

1. Do you have the discipline to play 1 currency pair a day for 30 days and cash out with 30 pips daily?

Do you want to know what happens? You get on a role, get cocky, and think you are invincible. You decide "Hey, if I can do this with 1 currency pair, why not 3 or 4". Then all of a sudden, you don't hit a couple of times and you have these "orphan" trades hanging around that turn into losers. Your confidence gets shot and you forget to work the plan.

September 1 is coming up. A perfect time for a 30 day challenge. I have discussed some of this via e-mail with some of you, but now I am tossing this out to everyone. Do what you feel comfortable with using the forecasts. But open up a second account for your 30 day discipline challenge:

• pick one currency pair out of the majors.. STAY AWAY FROM THE gbp/jpy and euro/jpy. When you master this challenge I will teach you how to trade those pairs to profit using the forecasts. (my fav for this is the gbp/usd - 74% forecast accuracy)
• set a goal to make 30% in 30 Days
• only use 4 - 7 % margin
• set a take profit for 30 pips
• cash out no matter in a profit or loss by 5 p.m. EST
• put a stop outside the forecast range (maybe 5 pips)
• if you are able to monitor your trade throughout the day, feel free to push for more profit, BUT you must put a trailing stop or stop loss at your 30 pip profit target
• only trade your pair if you have a medium-strong to strong indicator, otherwise you do not trade that night
• stop trading that account when you have made 30% or the 30 days are up

It is as simple as that. You might just discover that you can easily make 30% per month. The discipline comes in cashing out your 30%! At the end of the 30 days see where you are. It is very important to stick to the rules and train yourself to be disciplined.

It is very important when trading the forecasts to exercise proper money management and tight profit expectations.

There are many ways to trade using the forecasts, but all of them require discipline and a development of a personal style and rigidness that you are faithful to.