Archives for March 2013

This is potentially a very volatile week with so many significant economic news releases each day.  We will not trade Non-Farm Employment / NFP Friday.

I was hoping for some nice trade setups during the UK session, but couldn’t find any.  As the US session got underway, the higher lows on the EURGBP caught my attention.  This pair had dropped rapidly with the UK economic release earlier in the session and now was beginning to retrace as is very common when the US traders get going.  The trade met our Reward to Risk ratio of 3:1 to our Target 2, but there was not a lot of time left in the trading day for us.  We exit the trade as the UK session ends.

We will be very vigilant in selecting our trades this week, and moving our stop losses to take profit levels, as there is considerable potential for volatility all week.  Overall the market was fairly subdued, we will see what tomorrow brings us.

Good luck with your trading!  Keep your stops tight and don’t give back your profits!

Back tomorrow.

The first day of March concludes one of the most difficult to trade and volatile trading weeks that I have seen in awhile. With very little significant European economic news, the market used the British Manufacturing PMI as the catalyst for some very large moves to end the trading week.

The GBP exploded to the downside in advance of the release…hmmm… and more than doubled that move after the release.

The EUR being quite tame by comparison offered a very tempting entry short, but it did not meet our minimum Reward to Risk ratio of 3:1 to our Target 2.  Price subsequently moved to our Target 2 without us.  The cheap stop loss was about 25 pips above the entry candle and a better stop was about 35 pips above the same entry.  With our preferred target being only 51 pips away and risking 25-35 pips to get it, experience has taught us to walk away from such trades.  If you are not disciplined in your trading methodology, you won’t last long in this marketplace.

The current theme seems to be US dollar strength and we are seeing increasingly better economic numbers coming out of the US.

Let’s see where we go from here.

Good luck with your trades!

Enjoy your weekend!

Back Tuesday.