Blog: Market Analysis

While most currencies exhibited a risk-on bullishness, the STI was experiencing intraday distribution (refer to top chart). This is in line with my forecast for the week, and I am expecting some profit-taking from the big players. My short call on Noble should be hitting its target soon, probably this week.

I started off the day with two big winners riding long on the EUR/USD and GBP/USD. I also wanted to short EUR/JPY and GBP/JPY, but a bullish spike when Spain requested for aid negated the setup. Instead, I shorted EUR/JPY after the spike. Let’s see how it turns out tomorrow.

Today, as I was looking through some of my previous trades, I realised that I could greatly improve my results by exiting trades once I knew they were wrong instead of waiting for them to hit my stoploss. Of course, this will require some judgment, but there are some simple guidelines which be easily applied. I will share more in my next seminar.

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.

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Commodities Trading | My First Venture into Gold – Timing with Price Action

Today, I tried out one of my setups on Gold, and it turned out pretty well too, catching a major move and shorting it just as the action was about to unfold. The funny thing, there was no news or obvious trigger, and I know this because I was keeping an eye on my Bloomberg terminal screen as I was watching the various charts on my other screens.

As you can see, no indicators were required, and you can actually tell a lot about how a stock or product is behaving by astute observation of its price behaviour.

Recently, I also had a losing trade on the EUR/USD, which was partly due to me taking a pre-mature entry. Even after trading for so many years, it is still tempting sometimes to take a sub-optimal trade. Well, I guess I am human afterall.

For the next month, I will strive to maintain my high hitrate by being more selective in my trades. After a string of so many winning trades, it will be tempting to take impulsive trades out of greed. This is one of the 9 mental blocks that new traders will face as they start out on their journey.

Another 58 Ticks on the EUR/USD + Views on the SG Market

Recently the stock markets have been rather unpredictable, surging one way on political news and flipping the other way when new statements are released. For example, gold plunged over $30 in just under 5 minutes, dragging the EUR and other currencies down. Later that same night, “positive statements” regarding the fiscal cliff fiasco gave markets a sentiment boost, which has carried on today.

I was bearish on the Singapore markets, but I have liquidated my shorts for a small profit and now watching on the sidelines. I am ready to flip based on the price action. It doesn’t matter whether it’s long or short, as long as I am on the winning side. In the mean time, I am putting my skills to good use by consistently building up my capital in the forex markets, so that I will be ready when the move in the stock market comes.

Intraday Forex Trading | A Quick Punt of 45 Pips on the EUR/USD

Saw a nice trend play setting up yesterday and shared it in the forum, but since there was major news coming out, I went in conservatively with 10 lots for a quick punt of 45 ticks.

There is no need for any software or scanner, because all you need are your eyes, and you do not need to track hundreds of products for a good trade. Finding 1 or 2 good trades a day on one product is profitable enough. Do not be greedy because that will backfire. Making consistent profits on one product is better than losing on many products.

Forex Trading | 90 Pips Profit on USD/JPY Breakout Play – More to Come?

Spotted a nice breakout play on the USD/JPY around 9.56pm yesterday, and immediately shared it with my students after placing my trades.

Had to keep shifting my TP because the trend was simply too strong. Decided to take 1/2 of my 90 pips profits and trail the rest. Best not to be too greedy. I already have my final TP in mind, let’s see how far it can run!