Posts

Looking at the “Trade Ideas” whiteboard at the centre of the trading arcade, I have updated the key directions for the day. The strongest currencies were AUD and JPY (missed out NZD), while the weakest was Gold. Note that this was updated at 2.30pm, before the major moves in these currencies actually occured later on.

I did a couple of swing trades using some of the trend plays and breakout plays, but my best trade for the day was gold. Looking at the chart above, I managed to catch the turning point just before the plunge.

Overall, today was a pretty good day, since I did not have any losing trades. I also came to a realisation that the stoploss and targets were only guides, and not an excuse to delay action. For example, the SL is only a last resort, the worst-case scenario, not an excuse not to admit you are wrong. “Take a loss when you want to, not when you have to.”

Notice that all the calls on the “trade ideas” whiteboard are spot-on. I have shared in the forum and we have placed our trades for tonight, let’s watch if the GBP/USD trades lower the next few days.

On Monday, the stock markets were rather quiet, but the forex markets were setting up a nice trend play on the EUR/USD and GBP/USD. This observation was made simply by observing the price action, as I do not believe in using wave counts or esoteric patterns to forecast the future. That is not what real trading is about.

I took large short positions in both currency pairs and shared it in the private discussion forum for our graduates. 

For those new to forex,  1 pip is 1 tick of increment on the forex movement, and for EUR/USD and GBP/USD, it is 10 USD for 1 lot of a contract. For a 50 pip move, it would be calculated as such: 50 pips x 10 USD = 500 USD.
 

Today, after returning from my game of morning tennis, I was delighted to find that my targets have been hit for both pairs. Overall, the trend is still bearish, and I will continue to look for high probability setups.

This is the daily chart of the EUR/USD. It has broken below the previous swing low, and pulled back to test the breakout. I will be looking to short this.
This is the daily chart of the USD/JPY. It is pulling back after a strong upmove, and is now resting on the fibonacci 61.8% retracement. I will be staying out of this one for now. Keep watch to see if the uptrend resumes.
This is the daily chart of the GBP/USD. It is trading in a range, and is now in the middle of the range, resting on support. After the failed wedge breakout, it has decline rapidly, and I am looking to see if the support holds.