Focus on Fund Trading
Hi, last week I posted a couple of short videos on the subject of my Euro/Aud trade. On Tuesday I showed the entry (which was pre-planned from the week before and was almost perfect).
Then on Thursday, I showed how I was taken out and celebrating a 160 pip win on the second part.
I also had a small win on the Nzd/Chf.
The Euro/Aud (Murphy’s law) then continued to drop and eventually went 350 pips. I received an email from new member James questioning why I got out and didn’t I regret missing the extra pips. Everybody always regrets getting out too early which of course is always seen in hindsight!
I explain in the video my reasoning. In brief, there was a major trendline below that goes back to 2017, so the probability was more likely it would reject there than not. More importantly, at that stage I was up around 1.5% on my account for the week added to a small profit on the Nzd Chf, gave me around 1.7% account growth.
I have traded multi-million $ accounts for over 12 years (you have the opportunity now too)! For each $million traded that means a $17,000 profit of which the client receives $11,000 & my share is $5950. So the client is happy and I am too 🙂 – If on the other hand price had pulled back I might only have made 1% or less.
The secret in forex is to trade large accounts and look for small consistent gains whilst controlling the drawdown. That way you don’t need to make big profits every week and the chance of big losses. Slow and steady wins this race every time!
If on the other hand you are only trading a $1000 account or less than the monetary gain hardly seems worth the effort.
Focus on the education and set the goal that in 2021 you want to trade client funds and receive a substantial profit share.
I explained all this in the start of last weeks live training session which you can find here: How to Become a Professional Trader
You can download a brochure by clicking here: Funding Brochure
Crypto update: I posted during the week how it looks as though we might have a pre-Christmas drop. Why the big boys are pushing this and why the little guy needs to hold his nerve.
I do NOT trade crypto as it’s far too wild. I do invest in it using the fundamental and technical skills we teach here at FMP. You can find my thoughts and strategy here:
Focus on Fund Trading
This Weeks Trading Ideas
There is a LOT of news this week. My plan is to be out of the markets by the time the FOMC news at 7pm London time on Wednesday. ***&%$”! Brexit yet again 🙁 Now Boris and the EU both agree that a deal is “very, very, unlikely”….. It’s the highest stake poker game in town right now! It means trying to trade any Gbp or €uro pair is gambling not trading. No technical or fundamental analysis can pre-guess if
a) they do come up with some kind of deal and or
b) how the markets will react either way. My best advice is to leave it alone. I do have some decent setups, particularly on the Yens this week that I show in the video.
Last week I explained that if markets are slow then go down to a 4 hour chart and look at the structure and where the areas of support and resistance are. Once again there are some pairs that look tricky on weekly and daily, but are possibles on the 4 hour- see the video.
Aud/Nzd: I was in it last week, closed it at break even for the weekend. Almost the same as last week: Its in a 300 pip daily down channel. I will scale into this, half of the entry at 1.0630 and the other at 106.80 with my stop above the 55ema and whole number.
Euro/Nzd: Most conservative trade is a short at 1.7450. Swing traders consider a long at 1.0710/1.0750 BUT the more times price hits an area the more likely it is to break AND its the €uro and Brexit 🙁 – not for me this time.
Euro/Aud seems unlikely now but a short at 1.6390 is the sweet spot for me once more.
€uro/$: I am leaving alone but If you feel that you “must” trade it then 1.2000 is a key area to look at on a 4 hour chart, but not for me. If the Brexit deal falls through this could tank.
Chf: 0.9000 was huge support for a long time, so that should now become resistance so a short is an option. Watch it on a 4 hour chart around 8930 as there are some reasons for the stop there BUT if the€ tanks then this could shoot up!
Euro/Gbp: Brexit you are gambling not trading if you go near this!
Gbp/$: I would leave it alone as it is gambling but 1.2900 is a big area if it drops. The problem is that an overreaction to negative news is quite likely and this could drop a whole lot further, this could drop to 1.2000 so I would not touch it!
$/Yen: There are some better Yen setups but consider possible long at 103.70 on a 4 hour & 104.50 on a 4 hour to short. I only want to short. 105.90 is the “A” grade but it probably will not get there.
Cad: My bias is to short and 1.3000 is the key area, I will place my entry at 1.2990 and the stop at 1.3040. See the video on how I intend to play this
Nzd: Stopped at the monthly 200ema as expected. I prefer a pullback to long at 0.6820 for multiple reasons.
Aud: I will long if it pullsback to 0.7350. If it does a big drop then a long at 0.7010 is the place for me. 4 hour traders watch 0.7420/50
Aud/Yen: 75.00 to long. I am not interested in a short now as its stuck between 2 big emas in a small range.
Euro/Yen 124.60 to 125.00 to long I will scale in (half at each point).
Cad/Yen 80.00 is a definite long for me and 82.50 for a swing trade short. Don’t be in more than one Yen at a time or half the risk in 2.
M3 Shorter timeframes
Focus on Fund Trading
See the new course & recent blog posts as to how I do this: I do my analysis on daily and weekly charts first and make a note of the MAJOR areas of support and resistance. Then copy them on to Pierre’s Earth and sky template. Then I make a note of the weekly & monthly pivots points and add them to the charts.
You will see lots of opportunities line up during the week. The important thing then is to select a bias for the next few days and do NOT take trades if the price is too near a trend line or pivot. Ideally, you want to buy when the price is near a major support and or pivot point line and has the potential to make at least 40 pips. Vice versa for a short.
New members, please note: If I am looking to take a trade long, for example, 1.5000, I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
For more up to the minute, updates do not forget to drop by the forum.
Watch the video for more detailed explanations of this week’s analysis and trade plan.
Focus on Fund Trading
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