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What a great day in the LIVE trading room lloks like!

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  1. News trading system sold GBPUSD at 1.3262 with a 30 pip stop following the UK CPI data. GBPUSD declined 100 pips!

 

 

 

2. BOE’s Ramsden and Tenreyro testified before BOE Governor Carney and both of them were dovish. Decided to sell GBPUSD when Carney began speaking; the thinking was if his two underlings and talking dovish is likely Carney will as well; and when the market hears it :from the horses mouth” the GBP will timble; which it did; it dropped 96 pips!

 

 

3. The daily TRADFINDER trad idea was to buy USDCAD; USDCAD opened 1.2518pair reached its 1.2581 daily target

 

What Smart Forex Traders Do

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What Smart Forex Traders Do

  1. Bet enough to make their winnings meaningful
  2. Get in on news that moves the market
  3. Tweak their systems to allow for one time market peculiarities
  4. Take action and make money when they have a good trade idea

 

Bet enough to make their winnings meaningful

If your trading account is $1,000 you can’t limit your losses to 2% of your account because that’s only $20; how much can you realistically expect to win (profit) from a $20 bet?

A bet size of $50 would at least give you a chance to make a meaningful profit.

 

Get in on news that moves the market

Market moving news offers outstanding opportunities to risk a little and make a lot. The trick is to not be afraid to get in right away even if the pair moved a lot in the first few seconds following the news.

 

Tweak their systems to allow for one time market peculiarities

The attractiveness of exact trading systems is understandable; what’s not understandable is letting a great trade get away because it’s a pip or two outside your systems parameters.

 

Take action and make money when they have a good trade idea

Just do it. If you’ve done the research and analysis and everything looks good don’t let it get away by making excuses for inaction.

Cashed in a $9.50 Binary for $92.50. Nice start to the week

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  1. Saw the pattern of a bullish USDJPY trading gradually higher in successive trading ranges
  2. Bought the 109.64 09:00 binary option for $9.50 at 08:00 just before the dip below the trading range
  3. Was thinking after it dipped I should have waited for the MACD trap and bought it cheaper or bought a slightly lower strike for the same price
  4. Turned out the MACD trap was set much earlier (see arrow) so that thinking was not right
  5. Got the pop I was looking (USDJPY moving to a new higher trading range) and closed the trade at $92.50
  6. Could easily have waited for $100 (another 10 minutes) but my emotions overtook me (still working on that)

Here is how the chart played out:

 

 

 

 

 

 

 

 

 

 

 

 

 

If you would like a word doc with the details of the trade step by step send me an email at jimmy@eurusdtrader.com

The MACD Trap

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I listened to a YouTube video that said the high frequency traders fool the retail traders by “gaming” the MACD. I found this interesting and decided to look into it.

MACD stands for Moving Average Convergence Divergence.

The typical retail trader uses MACD to get “signals” and has little or no idea what the MACD actually is or does.

Here is what makes up the MACD signal:

  1. The MACD LINE
    1. this is the difference between two exponential moving averages (emas); the default emas are 12 and 26
  2. The SIGNAL LINE
  1. This is a 9 period simple moving average of the MACD line

Here is how it works:

  • BUY when the MACD LINE goes above the SIGNAL LINE
  • SELL when the MACD LINE goes below the SIGNAL LINE

Some traders prefer a HISTOGRAM that plots the variance between the MACD LINE and the SIGNAL LINE

Here is how it all looks at the bottom of the chart:

 

 

 

 

 

 

 

 

The “trap” might possibly be the SELL “signal”:

 

 

 

 

 

 

 

 

Followed by apparent “range buying” and then a bullish continuation:

 

 

 

 

 

 

 

 

You can see how the buying went from the bottom of the range to the middle of the range to the top of the range; and then the breakout…