Our 2014 Pitbull Trading Challenge Has Begun on 1-1-2014
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By Gerard (BT)
Today I would like to recap a Forex Swing Trading Strategy that we took on the AUD/USD pair in our Forex Day Trading Room. I have also made a short video to show the chart with a bit more clarity. This Forex Swing Trading Strategy can help to get you started with a very easy to learn setup in Forex. I feel many Forex Trading setups fall short since they do not work in all trading environments. I have found over the years that the most important element in trading is to just simply “cut the losers” and ride the winners. We must of course know when to take a trade and when to get out of a trade. You will see in this chart setup that the trend line has been in tact. I decided to countertrend this trade because there were criteria in place to support this swing trade strategy. One important element is that of support. With the AUD/USD at support at 9270 area and 9240, I felt this, along with other factors, may be the beginning of a short term retracement. The bullish divergence is a factor as well as the stochastics pointing higher.
Here is a good video with regards to the increased financial rules that I discussed in the trading room. Let me know what you think!
10-06-2013 Moving Average Trading Strategy with Ribbons
by Marco Hering
Moving Average Trading Strategy trades are common, however I have a different twist for my trades that I hope you will enjoy. Every trader knows this scenario: You wait hours and hours for a setup, and when the price finally gets close to your preferred entry level the price just turns around just a few pips shy of the level you wanted to get in. The question is always the same: Should I jump in despite not getting my entry level? or hope that the price eventually still comes back? Whatever you choose, under such circumstances, your choice is highly subjective at this point. But I prefer my trading as objective as possible. Last week we had this scenario in the USD/JPY. I was waiting for the pair to retrace back to my sell zone which usually starts at the 100 hourly EMA. As you can see in the chart below the price turned in the direction of the trend again before my sell zone got hit. If was pretty sure we would see a test of the 97.00 support area but on the other hand I don’t want to get in if I don’t have an objective sell signal. I will show you now how I handle this kind of situation works when my Moving Averages don’t get touched.
The first thing you do is to Right-click your Moving Average you prefer to trade at.. Then you click the MA properties and the “Levels” setting afterwards. To determine your alternative buy/sell zones around the Moving Average you add the levels you like and in what colour they will be shown in your chart. In this example I put in 200 and -200. This means the software will draw another Moving Average 20 pips above the MA you initially chose and 20 pips below since most brokers have now 5 digits.
The actual value for the hourly 100 EMA for the USD/JPY is right now 98.578. If you added levels at 200 and -200 the upper and lower ribbon will be 98.778 and 98.388. If you have a broker which still uses only 4 digits and the hourly EMA would be 98.57 then you have to put in 20 and -20 instead of 200 and -200 to get the same result. As you can see in the chart below the price retraced back inside the ribbon despite not touching the hourly 100 EMA. If you want to make your trading less subjective this is a way to handle situation when the price just turn around your buy and sell zones. Your rule could be that the price only has to come within +/- 20 pips of your preferred trading zones. In this case I got the first red momentum candle after the price hit the ribbon and I took a short at 97.61 and got my TP got hit at 97.05. For the live trading room I like to wait for my buy/zones to get hit but for my own trading I use sometime the ribbon strategy when I don’t want to miss a move: Here is a Moving Average Strategy Strategy with Ribbons.
In addition to the Moving Average Trading Strategy today in Euro session, BT spoke in U.S. session about the Government shutdown. We spoke about the fact that the stalemate may cause the USD/JPY to move lower. Here is a good video that shows the complex situation in Congress.
by Marco Hering
I want to introduce this Day Trade Setup that I executed as an official trade. The GBP/USD performed a nice retracement from my 1.6150 resistance area which I pointed out in my last post about this pair. These trade levels are discussed and taught in our Day Trading Room.
As you can see in the day trading setup images below, the pair found support in my buy zone but I wanted to see a break of the trend line channel before I executed the long setup. I put in a buy stop order at 1.6025 and got filled. I only went in with a half size position and had an initial TP for half of that position in front of the previous top and the stop below the lows. To make it simple for the members 0.25 lot represents ¼ size, 0.5 lot 1/2 size and 1.0 lot full size. So if I usually risk 1% of my account on a trade then a 0.5 lot size means I only risk 0.5%. I don’t give any recommendations on the actual size, but it shows you how much I risk percentage wise on my account. The GBP/USD proceeded higher, and the 4H chart looks bullish again. I decided to close some part of my position before the US New Home Sales number for +43 pips. I kept the rest with the stop at 1.5946 and the TP at 1.6145.
Greetings from Germany,
It’s that time again for another Pitbull Challenge. After many hours of collaboration with myself and BT, we have decided to create our ’Pitbull Day Trading System’. This Day Trading System we feel combines the best from both of us, to create in our opinion the “Ultimate Day Trading System”. You can see our results in action. BT has places most of the trades, however, it is a combined effort of day trading strategies.
Day Trading System – How To Pick The Right One ?
Since every trader is different so are the styles in which they day trade. The end result must be the same ‘being a winner’. I have seen many people consider their new system as the Best Day Trading System, only to later find out that this was far from the truth. The fact of the matter is that it is not just your system but the way you manage your trades that can often be a make or break for you in day trading. So in a nutshell choose a Day Trading System that fits you. If you are impatient then you may prefer short term trades, if you don’t mind a day trading system that takes weeks to produce results then you may want to be a position trader or a swing trader. Whatever you decide, choose wise.
Day Trading System Performance
We skip July and August as well as Decemeber and Jan. during our challenges. Come and follow us and see how we do. The last pitbull challenge gained over 53%. So far BT is up 33% in only 2 weeks of trading. Last Friday I contributed with that great +88 pip trade! Wow! goes to show you when volatility is high so can profits!
We will post some of the trades on twitter.com/livedaytrading
Forex Live Room Review 5-15-2013
Today was a great day, as we hit 3 GBP/USD trades. The methods we used today had a high degree of accuracy, my weekend work has sure paid off! The first trade was placed in Asian session last night and hit target for over +40 pips. This trade was well thought out and was based on an important level that I mentioned several times in the trading room. We came into the morning with two more successful trades each averaging in 20-30 pips. We focused on these scalp setups using our Forex strategies that we teach daily in our Forex live room.
Here is a quick peek at one of my charts. You will see the trendline on the daily chart broke on the GBP/USD. We have been playing this trade long and short for 3 days. If you would like more info on our Live Forex Room services.
Forex News Today
Mortgage numbers came out weak today and this allowed us to use some of the volatility in our favor. We also had Empire State Manufacturing Index that came in lower than expected at -1.4%, they were expecting 3.6%. Some talk out there on Wall Street about home prices overvalued. I disagree, I did not even know they rebounded. At any rate here is an interesting CNBC video.
Forex Trading Room Recap 5-14-2013
This has been a great week with the USD index moving higher we managed to get into some of great Intraday scalps, so far we have netted some nice pips. We encountered many Forex Pairs that are at or near their breaking points. When these important points were broken on most of these trades, we were already short as our technical analysis was clear for us to take these trades. Knowing when to trade is just as important as knowing when not to trade. With the proper money management techniques, as well as strategic positions at the key times, we increased our trading edge. Here is an article I wrote today on the USD. I hope you like it.
Here is a video from Jim Rogers. In this video he explains the long term effects of “printing money”. I think this video can help those who are looking at the fundamental Forex Trading view. If you are interesed in joining our service check us out. Please join our Facebook and our Twitter.
Forex Commentary Review 4-23-2013
I will keep this Forex commentary review short.
I hope you all enjoyed that nice flash spank down today as the ‘AP hack’ today. The false rumor of explosion at White House caused stocks to plunge, however, this was met with a rebound when the news was confirmed as a ‘Ap Twitter hack’.
Here is a nice video that explains in detail exatly what happened today. The whole process in the twitter hack was only 6 minutes. I think this clearly shows how powerful the trading algs have really changed the day trading terrain. I will elaborate on this more in another Forex commentary.
At the moment I am looking at a few different options, I am of the opinion that we may see a bit of a correction here. Here are some charts on the EUR/JPY, and AUD/JPY. These charts are very light and do not have much in the way of notes on them. If you are interested in getting our full service materials, please join our trading room or signal service.
EUR-USD Technical Analysis
Today our Trading Room enjoyed some overtime as we grabbed some nice ones for a total of +54 pips. I want to focus on tomorrow and some possible levels we may see on the EUR-USD. We spoke earlier in the week about the possible lift off to the 1.3200 area. This was clearly mentioned in our members EUR-USD Technical Analysis. I mentioned this may be a nice area to place some sell positions. With a stop above 1.3233. This was a great stop area. If you did catch this in our live forex room then good job! The EUR-USD indeed shot up to our key area and was sold all the way back down to the 1.3000 area. Hindsight is always 20/20 as they say, so I want to list some areas I will be looking at today in our U.S. EUR-USD Technical Analysis.
For 4/19/2013 EUR/USD Technical Analysis key areas, I will welcome any trade above the 1.3122 area as a good opportunity to sell this pair. A tight stop above the 1.3200 are would be an ideal trade. I will post again later tomorrow or on Monday to report any new ideas.
The Forex Technical analysis model on the Euro is not one that stands out at the moment for a good trade on either side. From a fundamental standpoint, the situation in Cyprus is important. I would like to begin by giving an update on the situation.
In a recent interview reported by Reuters today, Mr. Dijsselbloem said he was effectively “pushing back the risks” that EU authorities would be left to shoulder the burden of bank bailouts. Dijsselbloem said that “Cyprus was a case with exceptional challenges and that bailout programs do not have models or templates.”
These statements have left continued uncertainty in the minds of traders as the Forex markets began their chop in late Euro session and extended the chop well into mid U.S. session. Below is a 15 minute chart of the EUR/JPY and the EUR/USD both screen shots taken at 12:30pm EST.
We have a more clear forex technical analysis model in our members section. This chart below just shows some basic support and resistance levels on the eur/jpy.
Here is the video from last week, I think it may be worth to listen to comments by Putin.
Today in our Forex Trading Room, the markets were very choppy in the U.S. session. The Cyprus ordeal continues to dominate the headlines. Yesterday the markets did not seem to care much about Benny’s speech as he basically said what he has been saying in his press conference for quite some time. According to news reports Cyprus Banks will open next week, you can just feel the indecisiveness as traders are unsure which direction to take the EUR/USD. We took a few scalps in the Forex trading room, but nothing much other than small gains due to the chop.
Progress appears to made in Cypress as a few positive news announcements that Cyprus is nearing a deal emerged. I expect them to emerge fine and for the EUR/USD to jump a bit on this. The bottom line is you never can tell what ‘rumors’ or news may emerge in the markets, this is of course what stops are for.
We have been watching the tight range today in the EUR/USD move from 1.2945 and 1.2885 most of the day.
We did get some rumors around noon today on Cyprus. Reports of Cyprus Popular Bank being shut down were later later denied by their central bank.
At the moment we are watching and waiting, I am on alert and have the Forex trading room open past our normal hours to be ready for action. I will post later or tomorrow on the outcome of our trade.
Forex day trading is one element of trading,while other styles of trading are also common we must define Forex day trading as a trade that is not held for over 1 day. There are other types of day trading that I want to point out. Swing trading is should not be confused with day trading since with this style of trading you are normally holding for over 24 hours and sometimes up to 3-5 days. The definitions of swing trading has been changed many times over the years but we keep swing trading as the definition as long as the trade is not held past the 5 day period. Position trading means you are holding this well beyond this time frame and sometimes for months. This again should not be confused with the other types of trading since stops and targets must be drastically changed depending upon the style.
Forex Day Trading in Advantages
I find one of the biggest advantages to Forex day trading is that at the end of the day you are done and out! Nothing to think about nothing to worry about nothing to check in the middle of the night. When I would often trade swing trades I would find myself up in the middle of the night analyzing charts and not getting enough sleep. Since my personality type fits better with this style I prefer this type, however I do not turn down a great swing trade if it sets up. I will just go in smaller and adjust my stop and target accordingly. If you have the right system and the right mindset Forex day trading becomes a wonderful job that you can carry out in your own home with no boss and great results!
Disadvantages of Forex Day Trading
Forex day trading requires a considerable amount of time in front of the computer. I feel when I am day trading forex all must be perfect. My setup my focus, the office no distractions, since you are in and out fast and normally with a considerable amount of leverage compared with swing trades because the trades are larger and tighter. This does not mean you can’t trade with a small amount of lots it all depends on your style and how you want to trade.
If you are the type of person that cannot handle quick decisions and be under pressure then this type of trading is not for you. You must make sure that in an instant if the trade goes against you because of bad news or whatever be the case, that you are ready to exit so you can live another day in forex day trading.
Forex Day Trading is not for everyone, one must have patience discipline and an un ending positive attitude that you will endure the hardships and not quit. If you look for the proper setups and have the trades come to you rather than rush into trades then you may just end up with one of the best careers in the world. If you would like to learn more about our service you can visit us at our main website, we also provide Forex signals.
Today was a fun day and opened up some great opportunities for scalp trading. I want to recap yesterday and in this forex trading room commentary I want to point our some key levels on the pair eur/usd. In our Forex trading room, we were clear on the levels I was tracking prior to any announcements. The USD had a nice push as we did expect this from the chart setups and the fact that certain fibs were violated. The FOMC impacted the EUR/USD over 150 pips lower. We had a nice short on this pair and got some nice pips. A few members in our Trading room did report some nice scalps as the fade took place, to them I say ‘nice trades’. I stuck to the short side.
Today in our trading room we will be looking for shorts or longs. I indeed have a bias to the downside based on the trend, however no problem with taking some longs if the setups are good. Normally the day after FED minutes we get comments from different so called ‘experts’ and these opinions sometimes move the markets. We will see. A break of the 1.3300 level and I will look to short with a stop at 1.3355. Again i favor the downside but will be watching our EUR/USd key levels in case there are opportunities for longs, though I must admit I have NO plans to hold EUR/USD longs.
Our forex trading room commentary is posted for members in more detail daily, we include key trading levels for day traders as well as some trade setups we are looking for. For more info on our day trading room course, our forex signals or our Forex Trading room.
A reminder we may get some moves based on numbers coming out from France, Eurozone. For the U.S. session expect some movement from the Phily fed as well as the unemployment claims. This may enhance the move to the downside or it may squeeze some shorts we will see.
Daily Forex Trading Commentary – Currency Pair EUR/USD
Yesterday the EUR/USD had a nice push as we cleared the 1.3400 area. I will make this forex trading commentary brief. In the Forex Trading Room yesterday we discussed the fact that the EUR/USD may indeed get a pop based on different patterns we reviewed in the trading room. The fact is that the EUR/USD continues to move higher based on no good news, that is until today. Today was a different tune. With Dell earnings missing big in their numbers, the market came off with a slow grind lower until about lunch time when volume came in. We managed to get a nice EUR/USD trade off and got some pips to the downside. Now it appears with the 1.3271 support not broken yet we may just get some consolidation until we get another move up or down.The markets in general
When The News Hit
After the latest FOMC minutes, which showed members are considered the end of the QE, the EUR/USD came down around the 1.3300 level. I was with a client out of the office an decided to not get into any new day trades. Wow I picked the wrong day to do this!
Ok on with the commentary…………
Risk on currencies and were hurt by the minutes as risk aversion took control. The S&P 500 and the Nasdaq had worst day of year. The GBP/USD is trading at lowest since 2010.
In a nutshell Several Fed policy makers said the Fed should be ready to vary the pace of their bond purchases. This statement does not mean that they are 100% done with QE but the market sure seemed to take it this way.
I will post another commentary tomorrow
Forex News for Thursday ahead
News tomorrow morning will be to the PMI from Europe and the CPI in the U.S. will take the scene in the American session. PMI and CB leading indicator in US, the Phili Man. index and the Jobless data may cause some action tomorrow in the markets. I will post a video tomorrow.
I will be brief with this Forex Commentary today, The US stocks closed Wednesday mixing red and green numbers as investors step back from Tuesday gains. Market is focused on tomorrow’s ECB and BOE meetings and US jobless claims.
The DJIA advanced 7.22 points to finish the day at 13,986. The S&P 500 gained 0.83 points to 1,512. And the Nasdaq Composite declined 3.10 points to 3,168.00.
Tomorrow we’ll get a rate announcement from the ECB followed by Draghi’s press conference. The EUR/USD has been on a tear as of late as the US and Japan intend to print their respective currencies to oblivion. At this point the ECB can only cut rates as it cannot monetize debt. Draghi’s comments has moved the markets before and tomorrow shouldn’t be any different from the past. Which direction shall the market respond is anyone’s guess, but given our current uptrend we are going in long.
I am looking forward to tomorrow’s day trading room
First let’s start by wishing you All - A Very Happy New Year !
Learning Forex Day Trading in our live room was lots of fun this year. Last year 2012 has been great and filled with many rewards. As our membership grows in the day trading room, we want to express our thanks to all Our Forex Traders who made this fun trading room happen! We are also committed to making sure that all of our Traders get the best possible attention in our Forex Room. Having a close knit trading room environment is important to learning. The feeling we get as coaches when customers send positive feedback on our service on their great experiences is a good feeling to us. We would like to say we look forward to another year and to further serve our members in learning forex day trading.
How will Learning Forex Day Trading In Our Room Change for 2013?
To outline some key aspects we have planned for 2013 is as follows:
1.) We will be adding a new Trading Coach starting Late Jan. 2013.
2.) We will be adding over 20 Videos for members only! – scheduled for the month of Jan. These will be Videos to help in the process of Learning Forex in our Forex Day Trading Room as well as tutorials you can learn on your own.
3.) We will implement a watch list each week with key levels that we intend to update each day starting late Jan.
We plan to post more updates soon. Our Members section is already under construction with the latest technology to help better serve our growing customer base. We plan to not only continue as the Best Forex Trading Room on the web, but to move our services forward and insure that our growth as a room goes way beyond our customers expectations.
You can join our Twitter here
Best In Trading
Gerard Mastra (BT)
Forex Training Room Review
As many of you may know I tend to not rely solely on news when I trade. I do realize that knowing when news comes out is very important in day trading. The EUR/USD Forex Trade today was impacted by the news that came our so let’s start with today’s News:
Today we had at 10:00 am EST,we had US Existing Home Sales (MoM): 4.94M in December and Change (MoM) falls 1%. We also had the manufacturing index by Richmond Fed fall from 5 to -12 in January, which disappointed. This reading was a less pessimistic market that was expecting a figure at 4.
Today in U.S. session our focus was on the EUR/USD Forex Trade. We watched the EUR/USD very close, and waited for our trade to setup at our exact area of 1.3309. In Euro session overnight, rumors seemed to rule the and caused a big push down on the EUR/USD after a prominent Bank official from Germany was rumored as to have resigned. This cause an immediate 1% move on the German stock market as this official is an advocate for German bond purchases that have helped prop up the EUR/USD.
So what does this all mean? Well, not much according to the Bundesbank officials as they dismissed the rumors as “Garbage”.
Ok, now back to our EUR/USD Forex Trade:
The EUR/USD did crack our key support level at 1.3309 allowing stops to begin to get hit. We waited patiently as the 1.3300 area broke, and we had a short from 1.3309, the EUR/USD broke our support, we ended up with +31 pips on this EUR/USD Forex trade. Our exact support level was hit as we covered at exactly 1.3281
I will post tomorrow with our Forex U.S. session Trade, are you a Member? If so make sure you are part of our private twitter group. If you are not a member and interested in joining please visit our signup page.
In this FX Daily Commentary on AUD/USD 12-21-2012, I want not only discuss the day trade from today but I want o mention that as Traders who must trade each day for a living we need to ask ourselves a few questions….
1.) Do we really want to take this trade?
2.) Is the Forex Pair setup on all our time frames that we Day Trade?
3.) Is the leverage matching our intended leverage and our account specifications?
So why the move on the AUD/USD?. Sure I can write a Fx Daily Commentary on what happened today, but don’t you want to know what may happen due to our AUD technical analysis? The bottom line if this trade has been setting up now for quite some time, it was just a matter of entering when the signal came. Well we got our Forex Signal in our Day Trading Room Yesterday and we took it. Today we exited for over +130 pips. Here is the article you should read before you watch this video.
We wish you a great Christmas and New Year.
By Gerard (BT)
Forex Market Strategist
Here is my Forex Commentary EUR/USD December 20, 2012. I will be looking for certain key areas on this pair today in our Forex Day Trading Room, we had a reversal on the EUR/USD after three extended pushes to the upside testing the important level at 1.3300. The daily chart at the moment has a nice reversal candle and we may just move lower. The things to be concerned with is the time of the year. These trading days have been witnessing false moves as markets prepare for Holidays. We can easily see moves in either directions. We also have to consider the problems that may arise from the ‘Fiscal Cliff Drama’.
My expectations for the EUR/USD today is a move abiove the 1.3220 and I think then we m ay revisit the 1.3300 or close to it today, so I will be watching this today close.
1 hour chart of the EUR/USD on Dec. 20, 2012
Scheduled releases are light today starting with a medium impact release of German PPI figures. Its expected to drop a little showing producers are paying less for goods they purchase. I doubt this will have much impact as the IFO business Climate yesterday being positive shows that the potential for deflation is low since they feel business should be getting better.
The UK has its Retail Sales numbers released today expected to improve from the negative release last month. Since it seems the focus is mainly on the US fiscal cliff talks right now this will most likely be a chance for manipulation more than anything barring a big surprise.
The US has weekly Unemployment Claims expected to rise by 10K+. We also have Final GDP which shouldn’t be a mover without a miss. We have Existing Home Sales and Philly Fed Manufacturing Index. I will be watching the markets today close for any exaggerated news. So that’s it for the Forex Commentary EUR/USD, December 20, 2012. Below is a quick chart I will post again early tomorrow.
S n P Futures Trades:
at the moment we are up 14 points on a S & P 500 Futures trade and have moved our stop to break even. I will write some tidbits later as I want to update my chart.
We are at the moment in on a few small swing trades. I will update at some point with a chart. Have a great day trading Forex and Futures.
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Marco further discussed the fact that after attending several Forex Trading Rooms, he finally stumbled upon a Forex Trading Room that made sense, ‘Fx Live Day Trading‘. At the time, my fun little Trading Room that I set up to establish a fun trade community, was the only trading room he thought worth his time and effort. It was then, that we discussed some things Marco thought were important to new traders in a Trading Room. Since I was trained on Wall Street for 5 years, on Day Trading Techniques, I was oblivious to how the retail public actually learned how to day trade. Well, two years later, and thousands trained in our Forex Day Trading Room, we bring to you this Forex Website Blog that will encompass our daily Forex Trades. We now provide a complete Forex Trading Course, to get your started. Since we launched our NEW Forex Trade copier and SMS signal alerts, we have received great feedback from members. Our goal is to provide our Forex Trading Room to many in the future and most importantly have fun while doing so.
I wish you the best in beating those Banks in Forex, and I hope you stop in and see us
I know its been while since I posted my day trading room commentary, I begin to do more posting here as markets slow down near the Holidays.
Today was an interesting day for the most part. We went into the trading room with our key levels inoted in the Forex Day Trading room as we do each morning. Our eur/usd key level was 1.3078. As long as we stayed above this number we had a bullish bias. Under this number we denoted a bearish bias. The S n P did its normal tight range as it floated sideways for most of the morning session with 5 point trading range. We were waiting for the Speaker of the House to give his Press conference. As has been the norm the market began to sell into his press conference.
S & P Futures Trade
We took a trade off of our key level in the day trading room today at 1230, this trade was held until our target at 1223, for a +7 points.
Our 1423 Target was hit at which point I entered a short at 1430.50 with a 3 point stop. Our Target was 1423.00. I was stopped on a EUR/USD trade during U.S. session.
This trade worked out very nice despite the earlier stop out on the EUR.USD, our target of 1423.50 was reached for a total of 7 points. We also made a nice return on our AUD/USD short today.
Here is a AUD/USD chart below:
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Forex Room Review
Today was SLOW! If slow was not the word try watching oatmeal cook on low heat and stare at it till it’s done. I am talking about Irish Oatmeal, the one that takes 30 minutes to cook. So at any rate stare at the oatmeal until its done and do not move for 30 minutes. This is what today felt like in the Forex U.S. session. We had a break even session today. Oh wait…………… we grabbed two pips in total LOL.
Ok, so I can sit here and try and write some deep assessment about bond yields or something to try and make me sound like some expert nerd, but i’m not. Take it for what it is a slow Monday in the summer with no news. Let’s come back again tomorrow and try again.
Remember if it was so easy to watch these people on CNBC and make money then everyone would be a millionaire. In our Forex room we take a different approach and learn to feel the market, we do not try to forecast what direction the market will take….
Join us in our room M-F !
Today began as we decided to go with the trend in our Day Trading Room. The trend was up on the AUD/USD and EUR/JPY late Euro session. As many of you may know we go over each chart on several pairs to analyze support and resistance levels. In doing this as our first step before taking trades, it allows us to get a better over all feel of the Forex pair. The EUR/JPY also showed a bullish pattern. On EUR/JPY a double bottom was made around 94.00 and was holding nicely. The 95.00 level proved a clear resistance in which this pair never made it much higher in early U.S. session.
So I took an early trade in the direction of the AUD/USD trend. Entry was 1.0308 with tight stop. We never ended up hitting the stop as I pulled out at 1.0292 after my trend line was broke. A break above the 1.0311 would have been a key stop area where I felt a fast move to 1.0350 was a strong possibility. This never happened so a move to plan B was enacted.
I took another trade on AUD/USD/USD, a long was taken at 1.0284 with a stop at 1.0230 and a target at 1.0369. The Target was hit later in the day for a nice profit.
I have added a video of the Day Trading Room trades below:
Today was an interesting day in our Forex Training Room. With no major news releases with the exception of the Canadian News, we simply focused on some patterns and Forex order flow examples. We began the Forex Training Room by looking at the EUR/USD. This pair was trading at 1.2080 with no major direction. The direction was obvious, and a counter-trend trade was out of the question. The next Forex Pair that we took a look at was the EUR/JPY. This pair looked better as a Trade Setup Prospect than the EUR/USD, however it was also trading in a definite trend down with no follow through on the bottoming pattern. The candles were showing some promise though. We then jumped to our GBP/JPY. This met more of our criteria to open up a day trade, however, I made my decision that I would wait until at least 9:00am to step into a day trade. In our Forex Training Room our focus is not on how many trades we take but at the end of the month where are we? Up or down in our account? This is not the sort of career you want to spend losing, because it’s not just time at stake, ITS MONEY! Imagine going 40 hours per week working hard and at the end of the week you actually lost money? Well sometimes this will happen. In our Forex Training Room we discuss many strategies that in our opinion, help us gain our ‘edge’.
: We ended up taking a GBP/USD trade, this trade did break with a nice bullish pattern. After the Stock Market opened there was no follow through on this pair so we ended up simple taking an exit with only 10 Pips. Oh well.
After another AUD/USD quick scalp short at and exit at 10:25am we gained another 10 pips. We spent the rest of the session with members going over questions and answers regarding Forex. Our last chart I examined with a nice Bearish pattern was on AUD/.USD again, this time it clearly broker our key levels and it did clearly look like a flush was coming. Some members did take this trade for +30 pips, however this was not an official trade that I took. Ok so our Forex Training went decent today……let’s try again tomorrow!
Below is a quick video.
Monday was ‘Yenday’ in our Forex Trading Room
+50 Pips in U.S Trading Session
As I mentioned last week I will try to update all Forex Trades we take on this new blog….If you would like to read Forex Articles that are not trading room specific then please click our Forex Article Blog..
Today in our Forex Trading Room it was ‘Yenday’. We opened up a series of three Yen Trades in one direction. All Long. The EUR/JPY was our first small trade. We opened this day trade up at 94.55 with stop at 94.20. This gave us a little cushion, but not too much risk to the downside. We placed our stop loss based upon our forex trading system with a good risk reward. Our next Forex trade was on the GBP/JPY. This was a trade taken based on a double bottom formation play as well as risk on sentiment coming into the stock markets. Of course the earlier overnight message warning to Forex Traders came from Japan warning they may need to intervene if Yen move continues. This is nothing new as the verbage out of Japan has been the same in the last 6 months. ‘All talk and no action’. As they say a broken clock is right once a day. Shorts seem to have been covering a little today on the Yen pairs.
Our third and final trade in our Forex Trading Room came after several candle closes proved that a double bottom play may just rock and roll. The next entry was based on our Doji reversal candle and several other key indicators we use in the Forex Trading Room. Our Entry was another small trade at 94.65 on EUR/JPY with 94.28 stop. All in all we ended the day with about +70 pips. These were on relatively small positions needless to say a nice winning day in our Forex Trading Room.
Today was a slow grind lower in our Forex Trading Room. Volume was very thin as the S n P closed down about 1%. The U.S. markets broke a three day winning streak as earnings came in mixed. I often make videos on different day trading room strategies, and today I wanted to be sure to post this very important video. Most Forex Traders tend to add to their losers rather than just cut them, and take profit on their winners too soon instead of being patient or adding to them. I often see articles on the internet where traders will be preaching things like “It’s never too early to take a profit”. This is the furthest thing from the truth, if you study the lives of successful day traders. In our Forex Day Trading Room, we teach just that. One of our key Forex Trading Room rules is “Do not add to a loser”. Regardless of how many times newbies hear this rule they still seem to have those stories of how they did not listen and destroyed their account. So why do Day Traders often break this rule? It’s simple, because they are human!. Human nature is often tempted by greed or fear. In our Forex Trading Room we emphasize these key aspects in successful day trading. I am constantly drilling students on these important points.
Here is a fast video of how we cut our losses on this Friday morning.
The Brooklyn Trader
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Ok, today we had some nice trades. In all there were three Forex Trades. We began the in the U.S. Forex Day Trading Room at 7:40 AM EST. We pointed out our key support and resistance levels used for the day trading session. We noticed some peculiar spikes on the four hours chart with regards to the EUR/USD. There were several whip saw type spikes however there was indeed a sloppy trend line intact. We proceeded to draw the trend line based on my proprietary chart software then transferred it to my mt4. This are indeed was going to be used for a possible support level. At any rate let’s get to the point………we took a short and ended up with almost 50 pips. With a total of 3 Trades we netted +34 pips.
In our Forex Day Trading Room the focus is on technical levels however here are some fundamental points:
While I see risk of EUR/USD dipping to the 1.20 area in the next 30 days on ‘risk’ associated with the political measures to help the current crisis. Our Forex Team continues to see scope for the Dollar to come under pressure, however it is important to bear in mind that the U.S. is also entering into another dark error with regards to their recent economic fundamental indicators over the last 30 days.
In our Forex Day Trading Room we now provide FREE Forex Trade Copier and SMS signals with each trade taken in U.S. session.
Here is a quick video review
Today in our Forex Trading Room, we had a total of 5 trades this is significantly more than our 1.5 average. We waited until 9:41AM EST to take the initial AUD/USD. Quick spike trade which had no follow through and was sold a quick exit was a small loss on this trade.
Next trade came at 10:00AM when Federal Reserve Chairman Ben Bernanke began to speak. No mention of QE3 except his pledge that the Fed “Is prepared to take further action as appropriate to promote a stronger economy”.
The AUD/USD began to flush – as it flushed, we added 2 more trades and ended up with 3 separate AUD/USD trades. As the AUD/USD moved down, we moved one step lower to 1.0290 our targets were at 1.0222 and 1.0203. We ended the trade as we bailed out at 1.0240 and 1.0242 as Buyers stepped in at our support level at 10:45 am EST.
So as we treated our Forex Day Trading strategy once again like a hand of poker. It worked and as many traders who trade successfully will tell you money management is key to trading.
Trading Forex is and easy thing to do. In fact just about anyone can easily click a button and claim they are Day Trading Forex . At Forex Day Trading Room we trade each day in a live room setting. Some advantages of trading in a live setting is you can ask questions, interact with day traders around the world and see in real time how the experienced pro day traders do it. Our site Forex Day Trading Room is a blog site posted daily by Gerard and Marco. To find out more information about our Forex Day Trading Room check out.
It was a bit of a mixed bag this week with equity markets actually finishing up for the week while the DOLLAR and the YEN continued to strengthen. Even AUSSIE showed some weakness this week on back of some negative domestic numbers. The outlook for Europe and the US remain downbeat and if China also loses steam I don’t see the market holding up. But as I said in my previous posts, I don’t think we will see any major sell-off in the US market in an election year. I still prefer to play the risk-off side here in the currency market. I just don’t see any good news here on the horizon to give the market a lift. The only good news would be if the FED decided to start another round of QE but that will only happen if things get worse. The main strategy remains to seek opportunities to buy the Yen and Dollar. If I see a shift in the sentiment here, I will change my strategy but for now the trend is your friend.
EUR/USD took out the lows from May significantly and had a small short squeeze in Fridays late trading it was mostly downhill for the pair. We went as low as the 1.2150 region and finished at 1.2250. The old 1.2288 support is now the near term resistance as well as the 100 hourly EMA and the 5 day VWAP which are just between the 1.2288 level and Fridays price at the close. It is hard to say if we have seen a short term bottom here with all indicators still showing the bearish sentiment but shorts also getting nervous as seen on Friday. We are oversold here but we may still have some room to move further. The CFTC report showed the short positions climbed by just 19K from 146k to 165K. That size it also surly trimmed with the 100 pips squeeze we have seen Friday so I still look for short until the 1.2288 level is taken out. If EUR/USD manages to break the area 1.2363 and 1.2411 are possible targets for the retracement . Note that the 38.2 Fibonacci level is also at 1.2363. To the downside there is not support but the psychological important 1.2000 level and the 1.1875 area.
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By Gerard Mastra (Brooklyn Trader)
For over a year I have been researching Farms, that’s right Farms! Ok, well why would Brooklyn Trader want a Farm? Why not? I can day trade Forex and look out the window of my many acres and see my Cattle. Cool right? After all I have been born and Brooklyn and raised in NYC and been living among wall to wall people….time for a change. Well if you listen to Jim Rogers a lot like me you may start to believe everything he says. One thing he is always preaching is “Farmers will be the next ones driving Lamborghinis and the Wall Streeters will be out of work”. Well I think listening to those videos along with the idea of living “On the land” would be nice. When I first told my wife about this idea she thought I was nuts, I girl who who has more pair of shoes than I have hair on my head. How can anyone think that my wife raised and from Manhattan would want to live on a farm. Well she was thinking it may be a nice change also. We looked at several farms and even bid on one until I woke up. That’s right one day I pictured myself on a farm and I got a little nervous as we neared the time to actually make this move. One of my main reasons for not following through with this endeavor was I am concerned we are ready for the Bubble to break.
Now that the AUD/USD has began to sell along with commodities I think we will see at least a 20-30% correction in Farm land in the next 2 years. Bottom line is if right now is not the time to buy farmland as an investment.
Data compiled by Banks show the rapid increase in farmland prices, particularly in the Midwest are at ‘bubble proportions’. The KC Fed said irrigated cropland in its district rose 30 percent during 2012, while the Chicago Fed reported a 16 percent increase.
“Investors who are seeking a positive return on their funds have shied away from bond markets,” the council said. Instead, they opted for real estate “as both a hedge against inflation and a means of achieving better than the negative real return associated with fixed-income securities.”
The land-price gains have continued even as commodity prices have softened. The S&P GSCI Agriculture Index reached a record in March 2011 and has since fallen 25 percent.
As I wrote last month, this isn’t really a huge concern for actual farmers, who will be holding on to land for generations to come. It’s a problem for people who see double digit increases and think they’ll come for perpetuity. They won’t, and we’ll probably see a correction in land values quite soon.
That’s fine if you’re planning on keeping the land for some time. Not so much if you’re speculating on the farm bubble. Just ask the geniuses who bought houses in 2006 and 2007.
My confirmation on this possible bubble happened yesterday. The FOMC minutes revealed that we maybe ready to decease bond buying which has increased the value of the USD, this is further proof to me that we may be ready to sell in equities.
How Do We Trade This?
Well Forex pairs like the AUD, CAD and the NZD will be hit. We have already seen a big move as the markets are forward looking. I wish I could short the farmers but I have not figured out how to do this. Several indexes can be shorted with regards to AG stocks, I will wait for a rebound then get short. I will wait a few years until I buy my overalls..Then again will I really do this? I think it has made a great conversation and was fun to see peoples faces when I tell them I am buying a farm.
Here is an interesting video about a Billionaire who is buying up farms. Well many Billionaires lose money on investments, we will see in the next 6 months what happens to the price of Farm land.