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Due to a bereavement I will be away for most of next week. I will not be trading much but it will give me a chance to take a step back and look at reorganizing and improving the blog and main site. It will also give me time to write articles. If any of you have a specific forex problem you would like me to address or article you would like me to write, send me an email and I will see what I can do.
Forex Analysis for the week ahead.
I explained last week that the markets over the summer can be very choppy and it is often the best plan is not to trade, however there are trades out there, but you need buckets full of both patience and discipline to catch them. The best way to avoid all the "chatter" and jumpiness that happens on the smaller time frame charts at this time is to simply avoid them. Go to 4 hour & daily forex charts. Then you dont need to sit there all day. if you sit there for hours on end the problem is you will take trades that you really shouldn't.
There are some great possible trades coming up on the 4 hour & daily charts including a great "head & shoulders move which is building on one of the pairs at the moment. I will post an explanation in tomorrows LMT/ forex analysis for the week ahead article.
If you would like to receive more frequent, in depth analysis and regular market updates, just email me and ask to be included in the LMT mailing list. Its not just for the lmt and it is free.
Last weeks Brilliant 4 hour & daily Forex Trades
I mentioned in last weeks update that the euro cad and cad looked good for a move. These were both potential moves off the daily charts. I said with cad "Ironically cad (which I normally avoid) is holding above 78.6% fib on daily for last week,and trend has been up for a while.Could go up to 1.1800 or if breaks down to 1.1450. It broke down, straight through 1.1450 all the way to 1.1112. for a 400 pip gain. You read it here first !
Unfortunately I dont usually trade this pair. I am the founder member of "cads-anonymous". A self help group for those forex traders who have been burned by this pair! I have a bad history with the cad, it whip saws far too much for my liking.
Ironically it was one of the best movers of the week. I spotted it but didn't take it.
I have posted a detailed explanation on the blog as to what happened and how you could use this knowledge to improve your future forex trading. There are also a few tricks you can use to catch some of these bigger moves and integrate this knowledge with the LMT:
LMT Forex Formula Updates
If you followed my advice from last week to only trade the LMT when the trend was in the same direction, then the LMT had a great week in keeping you out of lots of potential losing trades. Remember the first, most important goal of a forex trader is to not lose money.
If you are new to forex and or you just bought the LMT Forex formula and you just wish to trade it "out of the box" ignore most of what I am about to say ! I have almost 6 years experience trading this nonsense so I can apply some of that knowledge to take trades that you shouldn't until you have more experience.
I did have a very nice euro/$ trade that I took. It was an LMT signal but the trends were not the same. But for a number of other reasons I still took the trade: the candle formations were very positive and price had bounced off a trend line. I have been looking a lot more closely at candle sticks & support & resistance this week and it is something for you to learn if you wish to improve your forex trading. I will explain this in tomorrows update for the week ahead.
Equally I had more losing trades than normal (because I broke the rules) ! but a nice little euro/gbp trade on friday meant i finished the week on my main account 120 pips in front.
On a tricky week that was a success for me. Again the euro/gbp was signalled as a buy on the daily LMT but the 4 hour was pointing down. I posted on twitter " lmt forex signal coming up on the daily euro/gbp. BUT LMT says 4 hour trend down, it MUST change soon cos its going up to me"!
The LMT has frequently beaten me (probably 85% of the time)! on my opinion re trend, but I took this trade as price had broken out of a tight range that it had been in on the 4 hour charts all week. ( I was - and still am - expecting this pair to fall a few 100 pips. Anyway it broke up, so I took it. Because the average move on the this pair is only 80 pips I double my stake. Again this is explained in the blog post.
Fapturbo evolution update.
I Have had the robot for 3 trading days so far. A friend of mine had a $5000+ win ($100.000 demo account) on his 1st day. I won $18 ! Something is obviously not set up right, so I hope to get it sorted this weekend.
There were teething troubles with the launch of the product and already people are whingeing on various forums. It hasnt done a great deal so far and there have been issues, but I have 55 more days to evaluate it. I always find its best to give these things as much time as possible to see what it can or can not do. It did strike me as a strange time of year to launch it (summer is the slowest, thinnest time of the year to trade), but at the moment the jury is still out.
I will let you know how it goes next week.
$1.000.000 challenge
I mentioned last week that my family had to rush off to England at short notice. This left me without my assistant. I am finding it extremely difficult to place trades (particularly at the moment with the current state of the markets) due to the fact that I have to place trades on my main account first. This is my main source of income, for considerably more than a $1 a pip for the challenge account so I have to make sure that the trade is set properly including stop losses etc. By the time I get back to the small account the price has already moved. I will use the free time I will have in this coming week to come up with a solution.
Again the link to this weeks great 4 hour & daily trades can be found here
http://forex-fxtrader.com/blog/forex-trade-examples/
To your forex success,
marc
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