The AUD pulled through and set up with a near 5:1 Reward to Risk ratio trade today.  I’m not Aussie obsessed this week, it has just been an easier pair to trade that the other majors.  Some weeks are tough to find trades and this was one of them.  It’s always nice to end the week with a positive trade.

Although it wasn’t until the US session got underway – the AUD set up nicely requiring a very small stop loss and a very acceptable return to our Target 2.  We got clipped just short of our Target 1 due to the spread, but it was still a nice trade to end the week.

It’s best to make sure your stops are strategically placed and move them in the direction of your trade while you manage it.  Use strategic levels to protect your profits or keep them very tight.  The markets have been reversing with momentum and there are some very major news events occurring which appear to be making the markets very volatile.

Let’s hope for an easier week next week.

Enjoy your weekend!

Questions???  Michael@privateforexcoaching.com

With the pending news in the US session, FOMC and Dr. Bernanke speaking later today, I had hoped for a trending UK session, but didn’t get it.  The AUD looked good in this otherwise tedious session, but it did not offer the minimum 3:1 Reward to Risk ratio.  There are cheap stop losses and there are conservative stop losses.  There is no point in being cheap, getting stopped out and having a trade go to one’s target because we were placing a stop loss a few pips closer to price than where we should have placed it.   A trader has to decide which one they prefer with nearly every trade.  When the R:R ratio isn’t there, it’s better to walk away and look for a trade elsewhere. Always be disciplined, patient and focused!

After 2 really nice weeks, we can’t complain about this one being slow.

Good luck with your trading.

Back tomorrow…

Questions???  Michael@privateforexcoaching.com

The AUD makes a nice move overnight.  After 2 really nice weeks of trading, this week is proving to be a little more difficult.  Although it looks like closing the AUD trade overnight at Target 1 was a little too soon, some trades work out that way.

I would rather keep the majority of my daily target and miss out on some pips, than give them back by being too loose with my stop loss and undisciplined.  Greed and poor trade management can destroy an account.  Always be disciplined when trading and abide by your rules.

Good luck with your trading.

The EUR was a tempting trade after the German ZEW economic release.  The other majors appeared too difficult to trade.  The EUR although tempting did not meet our Reward to Risk ratio of 3:1 so we passed on the trade.  As a trader, we must have rules and abide by them.  If a high probability trade setup presents itself and meets our reward to risk minimum, we evaluate the trade.  If the setup is less clear and does not meet our reward to risk ratio minimum, we look for a trade elsewhere or we come back tomorrow.  We do not take 50-50 trades.  We take high probability setups that are clear to see and meet our criteria.  We passed on trading this setup.

The week is young.

Back tomorrow…

The Aussie offered up a nice trade overnight with a greater than 3:1 reward to risk ratio setup.  The EUR and GBP also looked good to trade at the same time, but did not meet our 3:1 R:R minimum.

The AUD made lower highs toward the end of the Asian session, then dropped sharply as the UK traders began their day.  After a pullback forming another lower swing high, followed by a very bearish candle an entry is taken with a stop just above the lower swing high.  We remove the risk from the trade as soon as is prudent to do so and protect our profits by moving our “take profit” down as the trade progresses.

We close the trade after our Target 2 is reached to end the week.  Never be greedy and always protect your profits…the market can reverse in a blink.

It’s been a wonderful week for trading with many crystal clear setups.

Enjoy your weekend!

Back Tuesday…

The EURGBP set up nicely with a lower high overnight and confirmed the entry in advance of the GBP’s big move.  This pair has once again been very tradeable over the past week.   This trade set up with a greater than 5:1 Reward to Risk ratio.

Although the trade did not reach our Targets 1 & 2, we were very happy with the result.

It’s been another great week for trading, and we will be very careful not to give any of it back tonight.  Always be patient and selective with your trade setups.  Take the easy ones and walk away from the confusing ones.

Good luck with your trading!

Back tomorrow.