I’d wait until he re-posts the orders he took before (EUR/JPY, GBP/USD etc etc), there is a reason he closed the trades so soon after opening. If you open these trades yourselves be aware the risk/reward is large.
Yes I think long term that all the above will move lower.
The gbp could strengthen slightly before it drops but as long as your stop inst too tight you should be fine.
Okay thanks for that advice, i use tiny lot sizes so i havent left myself high and dry. Also, I figure that sometimes when your instinct tells you something you need to go with it, you are right i was thinking of waiting but i have entered these with longterm in mind, so if they do go up, but the outlook remains the same as it does at the moment - then i will hang on and be patient.
I have [B]plenty[/B] of patience, just need the brains to go with it LOL! (that’s where you guys come in!!!)
Hello my friend, who are you following? I hope you are on zulutrade…
I have a demo account with zulu at the moment, my main 3 are clear horizon, swissrunner and fibotradingchris. They seem to trade in a style that suits me. I have a few others that i am watching but these 3 are my main and seem the most robust.
I will wait til the end of the demo and then decide what to do. I would love to open a live account with aaafx to automate zulu - i just need to be sure its the right thing to do!
I have been reading your posts with interest too! Keep up the good work. I live in Birmingham by the way, where are you from Eddy Mo?
Thanks for the ‘likes’ guys!!
Right, I now feel I have seen enough commitment to the new long term trends and have opened orders accordingly.
Happy trading!!
WESTFX - your cad/jpy on zulu looks very nice and steady so far.
Also, what are your thoughts with the aud/nzd. It has been moving in the right direction recently and there are some reputable online analysis articles that state the aud/nzd is going be bearish!
The cad/jpy position is pretty slow as its not really correlated to much, so its a bit confused. It should push higher bit by bit though.
The aud/nzd might come down in the short term but it think over the coming months its going to push higher. I will only be bullish with regard to it in the near future.
Thank You.
Good Night!
I’m in on the cad/jpy…not sure how long to let it run…All advice gratefully received 
i’m a newbie and hate seeing green trades going down…patience i hear you cry.
Well the trade should stay open as long as its valid. If your trade is based on valid support and resistance then only the invalidation of this would cause me to exit early.
So, I will rarely exit a trade when it is in profit, before its limit.
Its a common newbie mistake to take profits early and let losers run. Its a false economy to constantly take profits too quickly. If you do this, you could have 10 positions give you 10 pips each and then 1 loser that closes down 120 pips and you’ve lost money.
So yes, patience is key. lol
I’m going to be putting up a few of posts that I think might be useful to most;
So…
[B][U]Why Forex?[/U][/B]
There really are so many benefits and advantages of trading forex. Below are just a few reasons why so many people choose FX:
[B]No commissions;[/B]
No clearing fees, no exchange fees, no government fees, no brokerage fees.
[B]Tax benefits;[/B]
Depending on the country, FX gains maybe tax free.
[B]No middlemen;[/B]
Spot currency trading cuts out the middlemen, allowing you to trade directly with the market.
[B]Low transaction costs;[/B]
The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%. Of course this depends on your leverage and all will be explained later.
[B]A 24-hour market;[/B]
There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep.
[B]No one can corner the market;[/B]
The FX market is so big and has so many participants that no single entity can control the price action for any extended period of time.
[B]Leverage;[/B]
In forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.
[B]High Liquidity;[/B]
Because the forex market is so enormous, it is also extremely liquid.
[B]Low Barriers to Entry;[/B]
Online forex brokers offer “mini” and “micro” trading accounts, which can be set up with minimal funds.
[B][U]Over-trading[/U][/B]
Over-trading is a very real issue for the majority of forex newbies. Below are some of the problems FX beginners exhibit;
[B]1. [B]IGNORING OR SECOND GUESSING A PROVEN SYSTEM!![/B] Obviously newbies will try many different methods of trading and rightly so. The issue is when a ‘trader’ finds something that works and can’t stick to it.[/B]
[B]2. Feeling the urge to place a trade within five minutes of opening a forex chart. [/B]
[B]3. When you’re away from your forex trading platform, you feel like you’re constantly missing trades.[/B]
[B]4. You think that trading more often will make you more money. [/B]
[B]5. You can always find a way that your bad trade would have gone well, if you’d done this or this, it would have been great, however this new found knowledge will make no difference to your future execution.[/B]
[B]6. Your urge to trade means you cut short your weekend so you can always trade on Sunday evenings. In fact, you find the whole ‘weekend’ concept very inconvenient since you’d much rather be trading on Saturdays as well.[/B]
[B]7. You have a history of being addicted to things and forex is the latest. This is no joke - there’s a very real high to be had from trading, so if this is the case keep that strongly in mind.[/B]
They are just several of the signs/issues of over-trading. The reality is that some people will trade very frequently and be profitable, this isn’t over-trading. Over-trading is like an addiction and an addiction is doing something regularly to the point of detriment ie. trading all the time but losing money.
[B][U]If your trading multiple currency pairs then you really should be aware of correlation.[/U][/B]
Currency correlation is calculated and displayed as ‘correlation coefficient’, which ranges between -1 and +1.
Perfect, absolute positive correlation (a correlation coefficient of +1) implies that the two currency pairs will move in the same direction 100% of the time. Perfect, absolute negative correlation (a correlation coefficient of -1) means that the two currency pairs will move in the opposite direction 100% of the time. If the correlation is 0, the movements between two currency pairs is said to have no correlation what so ever. They are completely independent and random from each other and there is no real idea how one pair will move in relation to the other.
[B]Examples of same direction moving currency pairs
EUR/USD and GBP/USD
EUR/USD and AUD/USD
EUR/USD and NZD/USD
USD/CHF and USD/JPY
AUD/USD and NZD/USD
Typical inversely moving pairs
EUR/USD and USD/CHF
GBP/USD and USD/JPY
USD/CAD and AUD/USD
USD/JPY and AUD/USD
GBP/USD and USD/CHF[/B]
Being aware of currency correlation can be very useful, as it stops you fighting the inevitable and helps you maximise profits.
There are many correlation charts and calculators on-line…so… there’s no excuse, know your correlations!
[B][U]OR if your not interested in trading multiple pairs, then a method to find high probability single pair trades might be useful, like the system Richard Krivo from Dailyfx uses;[/U][/B]
[U]How to Create a “Trading Edge”: Know the Strong and the Weak Currencies
By Richard Krivo, Trading Instructor
14 June 2011 02:38 GMT [/U]
In our live Trading Webinars we often refer to finding out which currencies are the strongest and which are the weakest. By making that determination we can pair the currencies so that we have a strong versus a weak or a weak versus a strong. By doing that we are creating a “trading edge” for ourselves. If we trade a currency pair in which both currencies are fairly equal in strength, we give up the edge because either currency can “take control” since they are of equal strength.
By matching up a strong with a weak, however, we can have a bit more confidence in knowing the direction of the likely move. Then, if we match the direction of that potential move with the direction of the trend on the Daily chart, we have a clear trading edge.
For example, currently the USDCHF pair is in a downtrend on the Daily chart. Based on a strong/weak analysis we see that the USD is weak and the CHF is strong. So selling that pair in the direction of the Daily trend is a higher probability trade.
Briefly, here is how I go about doing a strong/weak analysis…
I use a 4 hour chart with a 200 SMA on it. On a sheet of paper, a legal pad or an Excel spreadsheet, I list the currencies (not the pairs but the currencies themselves) in a vertical column. For example, EUR, USD, CHF, etc.
Now, let’s say the pair in question on the 4 hour chart is the EURUSD. If it is trading above the 200 SMA that means that the EUR is stronger than the USD at that point in time. I make a note of that next to the EUR and the USD in the vertical column…EUR gets an up arrow and the USD gets a down arrow. Then I go to the next currency and go through the same process. (All in all I bring up about 25 pairs on the charts each day before the open of the New York session and it takes less than 15 minutes.)
When I am done with the above process, I tally all the “up arrows ” and “down arrows” for the EUR against the other currencies and then I can tell where the EUR ranks strength-wise relative to each of them. For example, if the EUR has 5 up arrows and 2 down arrows and the JPY has 3 up arrows and 4 down arrows, that means that the EUR, overall, is stronger than the JPY. (It doesn’t get much more simple than that!) When I have all the currencies in which I am interested evaluated in this way, I then have an overview of how they all relate to each other based on strength/weakness.
Next, I match the strongest with the weakest and go to the charts and look for a technical reason, such as a break of support or resistance, to enter the trade in the direction of the trend. A pair that has a strong currency paired against a weak currency would be a candidate for a buy in a Daily uptrend. On the other hand, a weak paired against a strong would be a candidate for a sell in a Daily downtrend.
As far as the pairs that I personally look at, I run this analysis on all combinations of the following currencies: USD, EUR, GBP, JPY, AUD, NZD, CHF and CAD.
The process is very basic, straightforward and quite boring…but it works.
As a side benefit, while I am going through the process of checking the 4 hour chart on each pair, I really get a sense for what is going on in the market at the time. And that information serves me well as the trading day progresses.
Really really good honest information there! The over-trading bit made me think, never thought that over-trading could be a problem but you have explained so simply how and why. Good stuff!
This is some fantastic info, many thanks
Interesting! So you expect all these pairs to correlate positively?
How would you profit of these trading opportunities? what is your plan?
Thanks.
Its hard not to trade all the time when you first start out but I think as soon as you realise that its counter productive then its easier to resist.
There’s a really good line in one of the ‘Market Wizards’ books by Jack Schwartz from a famous trader [stocks I think] and he says that he likens his trading to quietly sitting in a room while looks of money floats about in the air and every so often some settles on the floor and he goes and picks it up.
Basically he’s saying there’s no point in trying to catch it when its in the air flying around, that it only makes sense trading when the time is right.