Marc Walton on April 6, 2014
Hi, a couple of week’s ago I showed you that I
had a potential 700 pips on my radar. I showed you what trades I was
looking to take and why. I explained which I would place forward orders
for and which I would monitor on daily charts. So how did I do?I banked around 500 of around 700 pips movement from 5 trades and some still haven’t fired yet. 300+ pips came from the forward orders I told you about on the Gbp & Euro/Gbp – past results are of course no guarantee that I will get it right next time BUT I made a plan & traded it.
That is more than my monthly 400 pips target from a handful of trades placed after spending a fair few hours on a weekend reading the financial press and studying charts. I then check daily candle closes for other moves. I don’t say this to brag, but to show you that you CAN make substantial profits trading from longer time frames and that there is no need to spend hours a day in front of metatrader.
In my early “trading” days (I was actually gambling because I really didn’t fully understand what was going on (most new “traders” in my experience fall in to the same category). I used to trade anything up to 10 hours a day and still have the dodgy back to prove it
Now I don’t spend that much time watching charts in a month!
Some of you like to trade. If you stay the course and eventually become successful you will probably be more like me. In the early days I was an adrenalin junkie. Emotions clouded all my decisions and I repeated the same mistakes over and over again. I had the luxury of the time and money to finally break through that glass ceiling. I also spent money on psychological training and it was the best investment I ever made in my forex career.
Nowadays I don’t get the “buzz” from trading. “If it wins great, if it loses then statistically the next one is more likely to win” – this mental state took me a LONG time to reach and many, many $1000’s of lost money. Psychology coach Steve Ward is holding a free webinar for us on Tuesday and I urge you to attend. Emotions will kill 90% of new traders. Forget spending time and money on robots and wonder systems, the KEY to succeeding is learning to control your brain!
Here is the link to the article about Steve Wards webinar and other posts: Guest Blog
The Forex Week Ahead:
The down side of trading from longer time frames is that you will have weeks when there is nothing!Thankfully this is not one of those weeks BUT it is potentially tricky and you need to be careful and especially do not over trade.
Price Is at MAJOR areas on many pairs. Will the $USA bounce back and these areas break and new trends form or will the $ weakness continue?
I have no more Idea than anyone else BUT I have a plan “If price breaks I will……. If price holds I will”……… You need to get in the habit of doing the same.
You should also do your own analysis BEFORE reading mine or any of the other mentors, it is the only way you will learn how to do this for yourself.
I will only take 1 trade at a time on correlated pairs until I have my stop to entry.
Gbp/$ Weekly: Same as 2 weeks ago: “We are currently in a channel that goes back to the summer of last year, but we have a lot of bearish indicators suggesting a reversal so how to play it? “…I will place an order at the market open to long at 1.6540. It is sat on a weekly and daily channel line which is also 50% fib of the recent moves and previous support and resistance, so multiple reasons.
If it fails and price breaks and CLOSES on a daily candle below 1.6500 then I will short it on a pull back.
Intraday: If the trade at the market open fails then watch 1.6220 for clues for a potential bounce back up, its major previous support & resistance.
Euro/$: Weekly: Same as the Gbp. Now at a major weekly trend line, don’t take both at the same time NOR the Chf which is even more correlated and I do prefer that this week.
1.3660 is a weekly trend line and previous major support and resistance so it’s a possible but I don’t like the 5/8 crossing, stochs pointing down and macd divergence so I have placed an order on the Chf instead.
If price closes below 1.3630 on a daily I will consider an M2 short/pull back.
Intra day: Those sitting watching price look for clues at 1.3700 for possible bounce back up.
Chf (don’t take at same time as Euro/$ as they are negatively correlated) I prefer shorting with the trend and 0.9000 Is the obvious area, once again for multiple reasons its a whole number/psych level, previous support & resistance, 50% monthly fib, 61.8% weekly fibs (some folks trade mainly from fibs so lots will be looking for entries there)- I have an order to short at 0.8980
Euro/Gbp: Weekly: 0.8380 is the place for a forward order for me to short for multiple reasons as explained in detail in the video.
0.8300 is the area for those trading intra day.
Aud: I said 2 weeks ago “Ways to play it: wait for break and close above 0.9150 to long or below 0.8900 to short.” Worked for 130 pips in total before slamming into Bollinger band.
Number of options. My main entry area is to short at 0.9400 and if that fails 0.9500 because the Royal Bank of Australia has said that they will take measures to weaken their currency (their target is 0.8500) and those areas are key technical ones.
Price of course has to get there first! If price pulls back down I will long at 0.9080
Intraday: I will watch 0.9150 for signs of a bounce back up – I will only take that entry though IF the weekly Bollinger bands open (see video)
Cad: Weekly is trying to break weekly trend line so its tricky. An aggressive move is long current position BUT I will wait for price to show me the way on a daily. If it starts to move up I will look for pull backs to long (its worked since the new year! However if price breaks and clearly closes on a daily below 1.0975 I will look for an M2 pull back short.
The move in either direction has the potential to go many 100’s of pips.
S/Yen Weekly. Worked last week but NFP killed it. This is a potential big move so I need either a pullback to long at 102.70 OR if price keeps going up then a break and close above 104.00 followed by a pull back.
Intraday: If it breaks down 101.40 has been major support
Aud Yen: I missed it. If the train leaves the station without you, wait for the next one
94.30 is the main areaEuro/Yen : Also messy. 139.00 will be the area to watch but I am nervous placing a forward order.
Intraday watch 141.00 but its messy – not for me
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