Although there was lots of movement during the UK session, it was difficult to find a setup that met our minimum 3:1 Reward to Risk ratio.  The NZD or Kiwi moves very similarly to the AUD most sessions.  The Kiwi setup required a smaller stop loss and the setup was more convincing to my eyes.

Both the NZD and AUD as it turned out, began to move at the same time.  If a trade gets away from you in one pair, have a look at a similar moving pair for an entry, but never chase a trade.  The EUR and CHF move inversely, so I usually like to confirm a setup in the EUR with the CHF looking like it will move in the opposite direction.

Good luck with your trading!

Back tomorrow.

The EUR was much more contained in its movement overnight.  After an exceptionally large drop Thursday, it is not surprising to see it attempt to stabilize today near yesterday’s low…at least for now.

The setup was very similar to Thursday, but the move down ended at yesterday’s low and temporarily reversed.

On a side note, my platform has been showing some corrupted data.  The gap down in yesterday’s chart turned out to be erroneous caused by a data corruption issue.  It is not unusual to see a gap in the forex market between Friday’s close and the new week’s opening, but it is very rare to see gaps during the week.  I’ve had a couple of issues in the past 2 weeks with data, so I will download a new charting platform this weekend and continue to compare it to other MT 4 platforms.

Technology is wonderful but far from perfect.  Always have your broker’s trading desk’s number on hand, just in case you encounter a power outage or become aware that your charting data may be off.  I know from experience, not being able to see your charts while in a trade, due to a computer malfunction or power outage can be quite stressful.  It’s nice to be able to call the trading desk to ensure your trade is moving in the desired direction or be able shut it down.

It’s been a great trading week and we look forward to next week.

Enjoy your weekend!

Back Tuesday.

Fabulous trading day!  The EUR was a textbook trade for us.  Breakout traders were lured in long and it didn’t take long before the EUR plummeted, then gapped through our Target 2.

It’s unusual to see a gap in the forex market during the week.  We see them  after a weekend, when trading resumes, but during the week, it’s rare.  This gap was filled in on the same candle, which also is rare.

Overall this was a gift of a day!  A number of pairs offered up nice setups and exceptional profits.  A day like this makes up for all the frustrating tedious days when the setups we look for aren’t there or where there isn’t much profit to be had.  Patience and discipline are key to trading success.

Let’s see what tomorrow brings to end the week.

Good luck with your trading!

After a very active Asian session, the CHF lured in breakout longs and set up a familiar pattern for us to take it short.  With very little news during the UK and US session, it was not easy to find a good trade setup.  After a very active Asian session, I like to find a setup that will run in the opposite direction to where price is  when the UK traders come to their trading desks.  In other words, if the Asian session has extended itself to the long side, then I am looking to find a trade setup to go short.

Unfortunately this trade produced modest gains and ended the session in the middle of the Asian range.  Very often trade setups like this will run right back to where price began the Asian session.

Let’s hope for some bigger moves in the UK session tomorrow.

Good luck with your trading!

The EURGBP can be a very nice pair to trade.  It moves slower than the EUR or the GBP, so it’s easier on the nerves as it tends to be a gentle moving pair.  As it is crossed with the GBP, it has a higher pip equivalent than the USD crosses.  When this pair trends as it has since the beginning of January, it can produce some nice returns.  When it has a tight trading range, it is best to avoid this slow mover.

It set up nicely last night and to my surprise went well above our Target 2.  As price hit Target 2, we closed the trade happy with the 3:1 Reward to Risk ratio trade setup that we entered.  We may have left at least 35+ pips on the table, but greed is very dangerous in trading and the downfall of many a new trader.  Have targets, manage your risk, lock in profits and read price action.  If you can do these 4 things, you are well on your way to being a successful trader.

February has all the makings of being an interesting month for trading.

Back tomorrow.

Good luck with your trades!

The EUR continues to move higher this week and is up substantially after two down days at the beginning of 2013.  After testing the Asian session lows, it began a slow ascent to test the Asian session and yesterday’s highs.  With little significant news out of Europe or the UK and Non-Farm Employment Change numbers due out tomorrow, the EUR topped out near yesterday’s high for modest gains.

January was a month where levels from last year were tested and re-tested.  Let’s see what February brings.

Be very careful if you trade near the Non-Farm Employment Change release tomorrow.  We do not trade on that day of the month.

Back Tuesday.

Good luck with your trading!