In the run up to Christmas we are always asked about whether members should trade or not. Professional traders, including myself will be out of the markets by the coming weekend and best practise is follow our lead BUT many of you have full time jobs and the holiday season suddenly gives you an opportunity to trade when you would normally be at work so how do you deal with the temptation?
Spending your time in the education area and reviewing recent blog posts would be the best use of your spare time BUT one thing to note is that in recent years major moves have, in the past, started over this period. If you are going to trade then my best advice is only do so around MAJOR areas with multiple reasons for taking a trade. Here is an example of recent moves on the Cad. I only took 2 trades on this pair in the last few weeks from the area I called in my blog post analysis. Both were winners and if you look at the following image it should be very obvious to you why
Then of course we come on to the subject of how to manage these trades. Many of you have learned here at forex mentorpro how to find great entries but the next key step in the forex puzzle is how to manage the trades. How to make sure we bank some profits and then how to try squeeze as much as possible out of the trade. The great news is that Omar is going to start a new project later this week and that will run through until March.
He is calling this his G.R.O.O.M project. The focus of this will be showing members how to maximise their profits AND at the same time have the opportunity to work with Omar in the development of a new trading strategy which is currently showing excellent potential. Its all based around the fundamentals you are learning here with us and its not time dependent so could be a great addition for all members.
All members who take part will have the opportunity to improve their results and the “winning” member, the one who shows most promise and best results will receive a prize & have the opportunity to work closely with Omar. Omar will explain more on Wednesday, so don’t miss his update.
Here is Omar’s post & analysis for the week ahead:
Recently, I have been flooded with emails from members asking “Omar, what’s the best way to manage a trade?” Sure sounds straightforward enough right?? But the answers and discussions necessary to truly handle all aspects of what that means to “manage a trade” would fill pages and pages and hours and hours. Don’t get me wrong, I very much plan on sharing and discussing various facets of the entire trade management process as we go through week after week in the blog and videos, but something came to me after reading all these different emails asking (some rather desperately) “What’s the best thing to do now that I’ve got this trade open?”.
To address the question, AND get YOU involved in the process, I have created Project GROOM.
As some of you may or may not know, I gained a whole lot of forex experience by diving headfirst into serious and disciplined testing of systems to see how they worked and if they worked at all, after years of watching one system after another I bought hit the bin after doing damage to my account. That spirit has never left and I continue to test systems even to this day. I have been given a very unique 4-hr system that incorporates many of the same techniques taught right here at FXMP. Because of that, I want to introduce members to
G = Growth
When we manage our trades, it should always be done in a “Growth-Ready” way, always seeking to push the account higher while balancing risk. We achieve this through “Outstanding Order Management”. Project GROOM invites YOU the FXMP member to get involved in helping find the best way to manage this new, secret system’s trades based on stuff you learn right here at FXMP. The best person’s results will get an ACTUAL part in development of the system, AND a piece of the action from the future potential commercial development!! That’s right, GET PAID!!! For the rest of us, we will be digging deep into understanding the best way to manage our own trades and if enough people do well, I will think of something else to give as a prize as well. Sound interesting??
Look out for Wednesdays post for all the information about this new, exciting project
Forex Weekly Analysis for Week Beginning December 08, 2013
We had a slow week last week to be sure. It is getting close to the holidays, so don’t expect too many fireworks. On some pairs we have reached multi-year highs and this might not be the best time of year to go dashing off thousands of pips in new directions. BUT, we can still trade if the market comes to our areas. Discipline and patience are key. Stay with the types of trades you know on pairs you are comfortable trading. 2014 and all the opportunity that comes with it is just around the corner, so we need to keep all the capital we can to trade it!! Let’s see what’s out there!!
Euro/$: The bullish multi-week move is starting to show some cracks after last week, BUT it was a “deep freeze” for many parts of the world and that could have taken its toll. We finished the week above 1.3715 but failed to break the next level of 1.3825. Best plan for me is to long from 3715 and long if 1.3825 breaks M2 style. If price is starting a bigger fall/pullback, look for reasons to short at 1.3715 if that area doesn’t hold. More Details Explained in the video.
Gbp/$: Along with the Eur/Usd, the Pound seems to be taking a pause after a 4-week sail above from our bottom at 5900 to clear the upper range of 6200. Look for breaks back above 1.6300 to long from there or pullbacks to the top end of that 10-week range at 1.6200. CT traders will look for reasons to short from 1.6300 if indeed we are headed back to 1.6200 first. See the video for more!
Aud/$: Starting to look better because Eur/Usd and Gbp/Usd have stopped such strong moves up. On top of that, 9000 finally broke to the downside and finished the week below that point! I will look to short at .9000 FOR SURE. If price rebreaks .9000 and starts heading up, I will wait until .9040 is broken before looking for longs again.
Euro/Gbp: I’m not getting a clear signal from this pair, so I’m leaving it the heck alone.
$/Yen: Last week this pair hit and rejected the multi-year high and prior weekly high of 103.75. After a mad dash upwards, are we going to see a pullback??? Possibly. First choice of trade is a break of the massive 103.75 area to take a long, followed by longs from 101.50 if we fall back there first. Of course, CT traders can always look for reasons to short from 103.75. Video for more explanation.
Euro/Yen: As I mentioned before, once this pair cleared 139.00, it should be “good to go” until 150!! That’s a whole lot of pips. However, it stalled out last week after a huge rise (most likely because both pairs in the cross bumped up against strong areas). If both pairs that make up this cross pullback to my “desired” locations, 139.00 should be the place to take a long on the Eur/Jpy. Use caution though, as we are at a price level not seen in years on this pair. That being said, a pullback to 139.00 before heading to potentially 150.00 could make up for the lousy presents some of us are getting for Christmas…… 🙂 Check le video for details.
Aud Yen: Once again, NOT MESSING WITH THIS. Sideways, sideways, sideways. Let’s wait until we see a strong move in one direction or another before placing trades here huh??
Usd/Cad: Much to my chagrin (this pair is my nemesis), the Usd/Cad gave one of the easiest and best trades of the week last week!! A sweet bounce almost to the pip of off 1.0560 gave a nice trade to finish the latter part of the week. It seems we might be in a new range between 1.0680 and 1.0560 so we should long from one and short from the other until the range breaks. See video for the details.
Eur/Cad: Here we sit right at the 1.4600 area. Thursday’s price action had some thinking long, but the chain of tiny daily moves gave me pause. A definitive break above 1.4600 and I’ll long from there, or pullbacks to 1.4435 or 1.4350 for longs as well. CT traders can look to short from 1.4600 if it is re-tested and fails to break again.
New members please note: If I am looking to take a trade long, at 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
Hope you enjoy the analysis!! See you Wednesday for an update and all the juice about our GROOM Project!! Best wishes and happy trading to all!!!
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