Hi, hopefully, you saw my warning to leave the markets alone on Friday.
I also made a short video in a separate post explaining why the Yens are most dangerous right now. Why that is the case.
Why my constant advice to “only be in one Yen trade at a time, because if one loses they all do” turned out to be prophetic.
I also explain the maths behind why the Yens are so similar. You can find the post and video here (you need to pay attention this not just for current markets but the future too).
I know of one fund manager who lost over 10% of his account Friday alone.
Even more hedge funds will have suffered from the meltdown of the world stock markets.
We all saw the crazy moves in Fx pairs last weeks as world stock markets went into freefall from the overreaction to the coronavirus. I listened to a UK professor of micro bugs in an interview where he explained we have ALL had some form of coronavirus in our lives as its the basis for the common cold and influenza. He also said that if it is upgraded to an epidemic, it isn’t really much different to now BUT I think its a fair guess to say that if and when the WHO does, it’s likely we will see yet more carnage.
He also downplayed the risk of death for those who are unfortunate enough to contract it, but the hype from the press and the 24/7 news channels who are leading with it, are scaring people to make stupid decisions,
I was talking with an Aussie client on Friday and he said to me ” I see you live in the Canary Islands and all the hotels are closed? ” There have been 3 cases in ONE hotel on ONE island!!! and yet the stupid news is leading people who are 10.000 miles away to believe that 1000’s of hotels have closed on the 7 islands! That then becomes a self-fulfilling prophecy where tourism numbers will drop dramatically.
10 days ago I did another post which is now “spookily accurate” and you should pay very close attention. Know when the probability is not in your favour. If you continue to trade then you are walking into a minefield with your eyes closed! Walk away now.
This was the post and it’s especially relevant right now:
I am trading NOTHING tomorrow and possibly all week. There ARE some tempting setups on a few pairs, double bottoms, multiple emas/trendlines and stop areas, BUT when markets are in panic mode the probability of them holding is less so I walk.
We will have a proper look on Tuesday in the live session:
Please register for this week’s Forex Mentor Pro Live Training on
Tuesday 3rd March at 11:00 AM GMT (London Time)
Click on the following link to register now:
If you have a topic you would like us to discuss, please let me know in the comments below or via the helpdesk.
We show in real-time what we are looking to trade and are happy to analyse any setups you may have found.
A live training session with Pierre du Plessis & myself this week. We will assess fundamentals, M2 Earth & Sky & fundamentals for potential trades. Followed by a Q & A session.
After registering, you will receive a confirmation email containing information about joining the webinar.
If you miss it, you will find a recording here on the blog, later the same day.
Forex Week Ahead
It will be very tempting to “buy the dips” but here are a few cautionary notes on that subject: ( I don’t usually pay much attention to “talking heads” on tv but a lot of this makes sense to me):
All markets are interlinked and forex is part of it. If you are going to ignore my advice and trade I can recommend a good doctor for you 🙂 AND ignore the Yens and Aud pairs whatever you do.
A few that MIGHT be interesting later in the week?
Gbp/$ and Cad. See this week’s short video for my reasoning and thoughts in the current chaos.
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 in Pierre’s corner.
Watch the video for more detailed explanations of this week’s detailed analysis and trade plan.
Click on the square button bottom right to watch in full-screen mode
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How to Trade Crazy Forex Markets