FOREX – GBPUSD 240min

Hi Everybody,

I would just like to remind all the FOREX traders among you not to forget the longer time frames. We suggest 60min, 240min and 480min for FOREX, as these longer time frames give smoother charts.

A great example is the recent TS3 buy on the GBPUSD on a 240min chart that caught the rally up into the 170 area....

A note for the Advanced Traders among you. When this trade reached the Maximum Wave 3 WPT (purple zone) “and” you were sitting on a +8R Profit what do you think would be the sensible course of action ? Exactly, tighten stops as this move was likely nearing an end. This is exactly what happed with the high unfolding right at the maximum Wave 3 WPT...

Thanks, Steve

Not all trades work out.....

Unlike most Gurus I do talk about the bad and hard trades. This is important so it gives you a balanced view of how trading unfolds in the real world, it is also important as there is so much B.S. (if I can say that :-) ) in this industry.......

So here is a TS3 sell on the 3min NQ that did not work out as anticipated. At worst it would have been a -1R loss (which is still smaller than the +2R Profit on the 3min YM), and at best a break-even trade. But the important point is that it did not work out as anticipated.

This is an important point, not all trades work out, loses can and do happen, your job as a trader is to keep the losses small at those times.

Thanks, Steve

The Cyclical Nature of Trading..... Again !

Hi Everybody,

We should all know about the Cyclical Nature of Trading by now, but it is always work reminding you all. Yesterday was a quiet day on the US e-minis with few trades. This is OK, because this comes on the back of some very good days recently. This is just because we have now entered the quiet period of the cycle. It will not be long before we get back to the profitable part. Again, this is just the natural way Profits and losses unfold in the markets

The YM did give us a small +2R Profit (ignoring slippage and commission) on the 3min Chart, but overall it was a quiet day yesterday.....

Thanks, Steve