Soaring Profits on the Euro and Sterling 2

Soaring Profits on the Euro and Sterling 2

Today was a pretty quiet day, just like yesterday, for the large part of the day. The major pairs were trapped in a narrow range of about 30-40 pips. However, from reading the price action, I was pretty certain we would be seeing more upside. Adding to my longs from yesterday, I had about 20 lots on the EUR/USD.

After hitting my first TP, I went long 10 lots on the GBP/USD, staggering the 1st and 2nd TP to maximize my hitrate and lower my risk. The markets were rather quiet after dinner so I took some time off to do some Christmas shopping.

At night, both pairs broke out, and my 2nd TP for GBP/USD was hit. the EUR/USD was showing signs of price weakness, so I decided to take my profits and call it a night. I ended the day with an average of roughly 50 pips on 20 standard lots, which amounted to slightly more than 10k. I am still adapting to wider swings in my P&L, and I will continue to increase my trading size.

Note to Mentoring Program Graduates:
Work on the easier setups, and aim to find one or two good trades a day. Work on getting a high hitrate, and do not be afraid of letting the winners run. One good swing can make you more than many days of small profits. Take small victories, and make sure you catch these windfalls too.
Good luck!

Japan Post-Elections

Japan Post-Elections 2

This morning, the Japan elections concluded, and there was strong movement in the Yen-related pairs. My over-the-weekend Gold trade which I recorded in my previous post trended down and hit my TP.

For the day, there was not much movement, so I traded smaller sizes, going long on the EUR/USD with only 15 standard lots. Let’s see how it turns out tomorrow.

The Week Before Christmas

The Week Before Christmas 2

Looking back at last week, we saw a strong run-up in the EUR/USD. Initially, I was bearish, but I realised the path of least resistance was upwards, so I cut-and-reversed to go long, applying the reverse psychology setup. Next week, we will see if it can clear the resistance zone.

Gold has broke the major trendline, and based on behavioral analysis, the path of least resistance is currently to the downside. I have been short since Thursday as mentioned in the forum, and I have taken 1/2 profits and trailed the rest. Let’s see if it can go lower.
The Week Before Christmas 3

The Week Before Christmas 4

The Week Before Christmas 5

For those trading SGX stocks, here are some trade ideas for you to apply the 7 setups.  Remember to apply the visual scans before taking action, and focus on getting an optimal entry point. Watch for the tipping point.

Real Trading Skills Seminar at CMC Markets

Recently, I conducted a training seminar for CMC clients, sharing how to read charts without using any indicators or special software. I taught them 3 simple techniques – EMAs, Market Phase & Visual Scan – which we later used to do analyse some stocks and indices together. This was a very decent turnout with over 50 participants. I might be conducting a session that is open to the public soon. When the time is right, I will out a notification to register via the mailing list.

Feedback

“Something new, trainer is experienced.”
– Katherine (Finance Manager)

“The speaker is clear and steady in his presentation. Also experienced, knowledgeable and frank. [Real trading skills] are essential to grow one’s wealth, to manage risk, and to improve mental or psychology well-being.”
– Steve Soh (Investor)

“[This content] is something new, something extra from others. [Real trading skills] are essential to update ourselves and keep learning and familiarizing. Now I see the markets more in depth.”
– Lim Kian Chuan (10 years experience)

“Clean and simple. Good trainer.”
– Alvin Yu (Financial Associate)

What did you like best about this seminar? “Chart reading”.
How is the content different from what you have heard out there? “Very practical”
How does this change the way you see markets? “Learn the skill to analyse the markets and how to control.”
What are the key take-aways? “Time-tested setups.”
– Patrick Lim (3 years experience)

“This seminar taught me how to use different approach to trade, makes reading charts more simple and easy, such as using visual scan. This is different from those either use only FA, TA or software to promote their trading course.”
– Kok Cheng (Retired, 5 years experience)

“Speaker is sincere in sharing. Thanks!”
– Susie Lee (20+ years experience)

What did you like best about this seminar? “Practical”.
How is the content different from what you have heard out there? “Visual scans – just based on visual observations + feel of the market”
What are the key take-aways? “The 3 chart-reading techniques – EMA, market phase, visual scans.”
“[Real trading skills] enable us to handle actual market conditions.”
– Choy Kam Luen (3 years experience)

“This seminar has broaden/widen my view about markets. I learnt something new. This is different because it does not sell any formula or software. It is simple and effective. I learnt how to view charts from different perspectives. Spencer is a very good and honest guy.”
– Stanley Tan (Retiree, 10 years experience)

“The main difference from what I have heard out there is his experience in trading.”
– Edward (Retiree, 5 years experience)

“Good speaker. My key take-away is the visual colour scan.”
– Nathan (Sales, 3 years trading experience)

“This seminar has new concepts introduced. It is somewhat different from others out there, with a different approach to the market. There is good explanation of concepts.”
– Thomas Tung (5 years experience)

“Straight to the point. Using price action is different from what is out there. Helps to maximise profit. More control over the market. My key take-aways are the confidence and the strategies. Speaker speaks very clearly.”
– Clarence (Real estate agent, ERA)

“Good content. Heard concepts I have not heard elsewhere. No indicators are used by Spencer. He used “count” of colour + shadows to tell whether market is in which phase. [Real trading skills] are essential to increase chances of making profit and to reduce losses. Very well-spoken, content is delivered very clearly. Good content.”
– Lim Bee Tin (3 years experience)

Commodities Trading | Non-farm Payroll

Commodities Trading | Non-farm Payroll 2

Today there was quite a lot of news, but the main event was the NFP (non-farm payroll) which caused a major selloff, flipping the market risk-off. The EUR/USD had been heading up the past few days, and I spotted a good opportunity to short it.

Gold also exhibited the “tipping point” price action, a similar setup I used for my past 5 out of 5 winning Gold trades. I shorted it, expecting the news release to confirm my price action reading.

As seen from the chart, Gold first spiked up to squeeze out weak players and to trap some bulls, then plunged over $10. To give you some perspective, a $1 move is equal to 100 USD per lot (meaning $10 is 1000 USD per lot). Naturally, this hit my TP (profit target) which I had placed near that level. Strangely, Gold recovered fully and more in the very next bar, but thankfully I had already taken my profits.

I decided to call it a day after this, and had some beer and chips in the office before heading out for Bak Kut Teh supper with some other forex traders. Overall, this was a good week, with a 72% hitrate and net profit of over 16k. I look forward to maintaining my consistency and trading with even greater size.

I will be sharing my market outlook on stocks and forex on Sunday.