2009 was a tough year for a lot of Traders. Good news and bad news feeding the market trends/ with no consistency. Resulting in many signal services biting the dust. Many of them good Companies just trying to trade a bad market. Oh well. We will take a better look at that after the Holidays.

With the Holiday season Volatility will be down. Keep your trades short. I did quite well during the Holiday season last year. Follow support and resistance and keep your stops tight. Pay close attention to the even number areas for reversals. As of today on the EUR we are at the 1500 level. Look at the longer term charts. there is a good chance we will be in a large area of consolidation till the end of the year. Be careful with your trades and conserve your capital.

New Rules Starting December 1^st- from IBFX

Trading: NFA Margin Requirement

The new 1% margin requirement is calculated by taking the Notional value of the base currency and converting it to USD. The base currency is defined as the first currency listed in the pair. For example a standard lot for the EUR/USD at a price of 1.5100 would have a notional value of 151,000 USD. Your margin requirement would be 1,510 or 1%.

For example:

Lot Size Standard Mini Micro Nano

1.00 $1,508.90 $150.89 $15.09 $1.51

　

For pairs with the USD as the base currency (excluding the USD/SGD & USD/ZAR)

Example: USD/JPY

Lot Size Standard Mini Micro Nano

1.00 $1,000.00 $100.00 $10.00 $1.00

-IBFX

　

 

For something a little different today I used the FXPrimeFilterV2 Trading system- trading in my demo account.
I do use this system with my live account. But as I have said in the past almost all trading systems I know of require you use some common sense along with other indicators. Fib levels, support and resistance and ect. When used together I have had some very nice trades using this system.

Today I ran this system as is. I used no indicators outside of the ones provided in the V2 format.

For those of you that are not familiar with this system it uses 2 EMA indicators a 6 and a 12 along with a 50 simple which is the blue or turquoise colored line. When the EMA’s cross the 50 SMA you get an arrow pointing in the direction of the cross. To enter a buy or sell trade you need the bar on the bottom of the chart to match the color of the direction of the trade. The arrow and the bar should appear fairly close to each other. With in 5 candle sticks. I don’t know what is being used for filters in this system but the clear area between the bars is suppose to be filtering out a lot of the static. Heiken-Ashi candles determine your exit. When the trend candle changes color that is your signal to exit the trade.

My results for February 20th.

EUR/USD -24 pips
AUD/USD -23 pips
EUR/JPY -48

All 3 trades executed between 7 am and 11 EST.
Not so hot.
In all fairness you have to keep in mind this was just a 3 trade test. Which doesn’t tell us a whole lot. But I do know if you add some common sense and some additional indicators 2 of these trades would not of been entered. And the 3rd may of closed in a profit.

Rocky road so far this week again. The new stimulus plan is shaking the stock market. And does not appear to be giving the currency market any bias. The GPB/USD seems lost. Be careful and stick with currency trading basics. Make your line in the sand and make the market come to you. Some times more easily said then done. In short sit on your hands. Better then ending up in a trade you wish you were not in. Believe me I know!
The GPB/USD bit me several times this week for a 50 pip loss.
Today I entered 3 trades resulting in 2 wins and one loss for an overall gain of 30 pips. See the above trade on the Eur/JPY.
This was a breakout trade at resistance entered at 117.02- Target was hit at 117.50 a psychological level.

FOREX Trading Tip-Know your Broker. They are all very willing to take your money-but how easy is it to get money out of your account if you need it? When you are looking for a Broker check out both sides of the coin. I like to be able to get money quickly to my account but I also want to be able to with draw some of it quickly if I need it. I also don’t want them to charge me for withdrawing it.

 

 

 

   I am not a stock trader but I just had to add this in here.
I don’t know where the automobile companies are going for sure. But I do know their stock prices are so close to the bottom they cant go much lower. I don’t make any recommendations but take it for what it is worth. At the time of this posting both GM and Ford can be purchased for under 3.00 a share. How low can it go before it is not their anymore. Risk verses Reward

Huge figures and not much of a move. (-598,000). Unemployment rate went from 7.2 to 7.6 percent. I guess about the only thing that will make huge moves in the market for the US Dollar is some unexpected good news. Which is really rare these days.
The EUR/USD came out of the announcement with very little movement. After the dust settled I entered a trade using what is called a 123 system for a gain of 34 pips. Not a great prize but better than a loss.

Is their light at the end of this tunnel or a deep dark dungeon?
Sure many of us have lost our jobs including me. We do need help but is a stimulus package of this magnitude the answer? It seems to me we could do a lot with this money just to help the unemployed get though the hard times. This is our money we pay the taxes. Yes business are closing doors and major companies are laying off. But there is a reason for this. Mismanagement has been huge and has to be corrected.
If my business is trading the FOREX market and I make some bad decisions and lose all my capital is the government going to bail me out. I don’t think so!
If I have to size down my trading lots to conserve capital- and I don’t do it. And loose all of my money. Whose fault is it?
Many of the banks have failed and are getting help.
It is our money that is helping them. I don’t see many of them going to far out of their way to help the people.
We are The United States of America. We have been though tough times before. We will survive. And it is We the People that will make it happen.

900 Billion-Is this really necessary-God help Us All.

There are many Forex Trading systems to choose from. Some cost big bucks and there are many available for free. Some are very simple to use with very few indicators and others have so many indicators and studies on the charts you can hardly read the chart. Which is better for you depends a lot on your trading style. Remember expensive does not always mean better. Try and choose a trading system that kind of follows your style of trading with well defined entry and exit points. Use good money management and if the system has any meat at all it will work for you.
Realize the system is just a tool. Paper trade and back test till you are sure it will do the job you need it to do.
One thing I have learned is that no mater what the system is-it is the trader that makes it work. Use your trend lines, support and resistance levels and fibs along with your trading system.

I have read this book twice. It’s a little pricey but well worth the money. Wayne McDonell The Author of this book does an outstanding job providing step by step instructions and explains what to look for in the charts. He teaches you to let the trade come to you instead of chasing the trade. He calls it his line in the sand. Support, resistance levels, pivot points, daily ranges and on and on he covers it all. There is also a very detailed chapter on Fundamentals.

If you purchase this book and decide to join FX Bootcamp the cost of the book will be deducted from your dues when you sign up.

This is not a beginners book but if you have been trading for awhile and need a little help this could be it.

Check it out.