Hi, I cautioned last Sunday and again in Tuesday’s live session that the news made last week very tricky.
I explained how I make a plan based on what happens AFTER the news. Using this reduced-risk strategy Ashley banked 230 pips last week. He shared the trades in the forum.
As I posted on Friday, it was Predictably Unpredictable: I Did Warn You!
If you chose to ignore me and won trading through the news, you probably got lucky! I show in the video how the Euro/$ jumped its stop during FOMC. THAT can and does lead to much bigger drawdowns than planned.
My best advice is to pick your battles carefully. The first goal is to not lose money. Christmas week for example is the other extreme, when usually nothing happens. So unless you like watching paint dry its not an enjoyable experience.
You will be much better off focusing on spending quality time with family and friends and spending any spare time you have on your education. I remain convinced that we are going to see a recession next year (no matter how the Fed changes the definition). So whats your plan to protect your wealth and prosper? The majority of people will have no plan and will suffer.
Ashley ending the week with 230 pips
Ashley showed in the forum how he caught a Gbp/$ pullback to the pip. We had highlighted this in the live training session and I said if it pulls back where is it most likely to run out of steam. It did. Remember we are always trading probability. He made 60 pips from that preplanned trade, then 170 from a Euro/Nzd short we had also highlighted. Both entries were text book, so a big pat on the back for him.
It gives me as much pleasure seeing a former student doing well as winning on my own account these days. Ashley’s progress since he came to me for private coaching over a year ago, has been incredible. This year he quit his well-paid job to focus on his trading and work with us here at FMP. He is now on a funded account and his results keep getting better and better. He shares most of them in the forum and blog posts, in advance. So TAKE PART in the forum!
Another of my students, Phil is running a new “Rookies Corner” blog that you can find here (only for members) and in the top menu, under blogs. He is sharing stories from himself, Ashley and other successful students who overcame the challenges and became successful. We all have suffered on the journey. Its good to know that you are not alone. More importantly how they and you can overcome them too.
You can also follow me on Twitter https://twitter.com/marcwalton
Trade for clients & receive a substantial profit share
We are radically overhauling how we approach funded accounts. All explained in the next article. Basically, anyone who has at least some experience can now go on to a funded evaluation account, without having to pay out as much and have the possibility to start to earn a substantial profit share and much quicker than on a small account.
I will be hosting this week’s live training session. I have invited the MD of the funded program and you can ask him as many questions as you like. There will also be a discount for the first 10 people who decide to join the evaluation.
The Forex Week Ahead
Thankfully there is a lot less news this week as the markets wind down for the Christmas break. This is the last chance to make some profits before the break. The following week there are hardly any planned releases, so price usually goes nowhere.
There are however a number of Cad news releases. The Cad itself is probably best left alone, unless it drops significantly. I show in the video quite a few Cad cross pairs that DO look interesting but after the news. Remember I am looking at areas where the price will “probably” react if it drops or surges. higher.
Keep watching the $index. I suspect it will probably struggle at the 200ema if it gets back there, so it could be choppy again this week.
Once again cross pairs look more interesting. Most of the majors do not have the multiple reasons I need for the stops. The GBP is a little more interesting. All are explained in detail in the video below.
Remember I am looking for “A” grade trades from weekly & daily charts that I can place the orders and then just walk away. A “B” grade is one that I will watch on smaller timeframes to see how it reacts if it hits my zone.
EUR/USD: “B” grade watch 105.60 for a possible long. I feel more confident at 104.20
USD/CHF: Its too messy right now, leaving it alone.
GBP/USD: I only want to long at the moment. 1.2150 is worth watching at the open, though I prefer a bigger pullback to 1.1870.
AUD/USD: another messy one. It closed on a long-term support & resistance line. Not sure, leaving for now.
NZDUSD: 0.6260 is an A- for me. 0.6350 is worth watching at the market open.
USD/CAD: Miles away right now. If it drops to 1.3200 after big news THEN I will be interested.
Some are A grades where I will place forward orders, most pairs have “areas of interest.” I have a lot of similar crosses so be very careful with the correlation.
EURGBP: Looking to long at 0.8620/8650. I might split the order in half, one at each. Technically its a buy. Fundamentally I am not so sure!
EURCAD: Its a long way away now but 1.3850 is an A grade for me.
EURNZD: 1.6670 is where Ashley caught it last week, the same area again to short. Intraday watch 1.6650
EUR/AUD: I only want to long this week. 1.5310 is the A grade for me. 1.5600 is the place to consider on smaller timeframes.
AUDCAD: 0.9050 is a long for me. 0.9250 to 0.9230 is the area for counter-trend traders (not me) to consider a short- see the video.
AUD/NZD: I don’t like this pair. However, 1.0755 is technically an A grade short for multiple reasons.
GBP/CAD: One to watch, see the video
GBPNZD: 1.9360 is an A grade short for me. Its worth watching at the open for a possible bounce back up from its current position, but I will not place a forward order there.
GBPCHF: Worked again last week shorting at 1.1525. Until it breaks I will keep shorting.
EURCHF: Haven’t traded it for years due to the Swiss bank debacle in 2015, but parity, 1:1 is very tempting to short.
M3 -Shorter timeframes.
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 onto 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.
Watch the video below for more detailed explanations of this week’s analysis and trade plan (click the 4 arrows bottom right to view full-screen):