Archives for July 2012

Beautiful Reward to Risk Ratio GBP Trade Setup.

These are not rare and if you know how to spot them, trading is much easier.  The other majors offered up nice trades too, as the week came to an end.

I am not a fan of scanning through 12 pairs to trade or even trading the exotic pairs.  I was taught by a “Whale” to get to know a few of the major pairs intimately and focus on them.  I have known many traders who have lost their accounts trading JPY crosses.
Once you are intimately familiar with the trading patterns of the majors or even one or two of the majors, you can make an enormous amount of money specializing in those pairs alone.  This business is about finding your edge, controlling your risk, being consistent and keeping it simple to be successful.

I hope you have had a very profitable week!

Enjoy the weekend.

The GBP yesterday had another higher swing low and today’s high took out Wednesday’s swing high.
Breakout traders were stopped out and an entry long presented itself.  Although the GBP didn’t make it to my first target, it had offered enough pips in advance of the US news to take a nice profit and avoid event risk.  Take what the market offers and don’t be greedy.  Keep your Reward to Risk ratio in mind.  Don’t try to squeeze out a few more pips in front of major news releases.

Let’s see what tomorrow brings to close the week out.

Good luck!

Michael

Keeping your eyes on Swing Highs and Swing Lows is very revealing of trend continuation and reversal.  Although I intraday trade from the 15 minute chart, I like to look at the 60 minute chart for clues as to how the daily trends and reversals are shaping up.

Three days in one direction and a reversal is quite common.  Let the charts reveal their clues… learn how to read them – NOT useless ambiguous lagging indicators.

Good luck in your trading!

GBP puts in its range on a news sentiment day, then moves back to where it started yesterday.

News has been mostly negative to begin the week – especially out of Europe.  After the market digested the ZEW sentiment, it consolidated before making an abrupt plunge downward after Dr. Bernanke began his comments.  With a stop placed above the structure high and our targets set, we were rewarded.

Note the first move as the UK opens is often a fake one, as to what the trend direction for the session will be or is merely to attract breakout traders. The lower highs on pullbacks reveal clues to the true session trend.  Once the breakout traders have been whipsawed and the ZEW news is out of the way, a low risk entry is available.

Great trading everyone.

Questions are welcomed.

Michael  

Be very careful trading Sundays/Mondays…

Always be very selective in trading your setups, but be especially careful on Sundays/Mondays.   I used to be very eager to start the week off by finding a trade to take.  I learned over time that it was better to be patient and that better trades are found Tuesday through Friday.  If I miss a trade on Sunday/Monday, it doesn’t bother me at all.

Questions are welcomed.

Great trading this week.

Michael

Patience pays off with a nice GBP long trade to finish the week.

It’s important to wait for the setup or not to trade at all.  Follow the rules for a high probability trade and be rewarded.  Never chase a trade and always have a calculated reward to risk ratio to ensure you are not risking too much for the amount you are trying to gain.  Accept what the market offers you or your target amounts.

Enjoy your weekend!

Questions are welcomed.

Michael