Hi members,
Thinus and I reviewed the M2 and E&S setups in today’s webinar.
The good news we have is that there are plenty of setups forming up and could come to our entry points this week. The issue is which ones are you going to pick if they all come at once?
Later in the video when I went through the E&S setups I explained my whole thought process and how I filtered out trades that I didn’t like.
Now, of course, you could have a different opinion and you might see things differently. Yes, the Earth and Sky strategy is different, and if the trade meets the rule then it’s a green light. However, I personally keep M2 as my base strategy and if I do see a setup on Earth and Sky I Prefer the weekly pivot near the Fibs. But more importantly, I don’t want it to contradict my M2 bias. If it’s quite a similar setup compared to M2 then I have more confidence in taking the trade. You will see what I mean when you watch the webinar.
Secondly, it is risk-reward. This is the key to becoming a successful trader. You don’t have to always risk 70 pips on a trade. If there is another setup which meets all your rules and is only a 50-pip stop, then why not go for that one instead? you are risking 20 pips less on the table. Also, you need to make at least 1:2 on your trade otherwise your chances of growing the account could take very long. I showed this example with the EURGBP and why I didn’t prefer in that area. I prefer it on the M2 at 0.86900 for multiple reasons.
Potential War in Sudan
At the end of the webinar, I showed you that there is a potential for war to break out in Sudan.
The clashes are part of a power struggle between army chief General Abdel Fattah al-Burhan and the head of the RSF group, General Mohamed Hamdan Dagalo. The two generals are former allies who jointly orchestrated an October 2021 military coup that halted Sudan’s transition to democratic rule and elections. (Al Jazeera)
Now for us as traders what we need to pay attention to is the economy of Sudan. What does Sudan actually produce and export? How does it affect other countries?
For a starter Sudan’s main crops include cotton, peanuts (groundnuts), sesame, gum arabic, sorghum, and sugarcane. The main subsistence crops are sorghum and millet, with smaller amounts of wheat, corn, and barley. Therefore we could potentially see an increase in the prices of these commodities if the trade is affected. The airport has been shut down but not too sure about the port. If exports are all blocked then there is a high chance this could affect other countries and cause a shortage. If there is a shortage of something the price of that commodity will increase. Simple supply and demand basics.
Sudan also produces oil. They exported $317 million in crude oil exports in 2020. In 2021, its oil fields produced 59,000 barrels per day (bpd). The Sudan Oil Refinery has the capacity to refine 90-95,000 bpd. This could affect oil prices.
So again do your research and keep an eye on the news and check how these things can affect currencies.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
You can watch the live webinar below:
Kind regards,
Ashley
