Why you could be selling EURJPY

Hopefully some of you spotted some of the reasons to be shorting EURJPY last week. On June the 21st we had a high test bar rejecting the 101.00 level, and an old level of support as resistance. We also had a head and shoulders formation on the hourly and a Fibonacci cluster (0.382 retracement from start of move down and a 0.50 Fibonacci retracement from previous swing high). Enough reasons really.

Regardless of the outcome, I'm in France at the moment enjoying the prospect of my money working for me. I have EURJPY running at a 2% gain (4% more to go until target is hit) and my ebooks making me income. What is more, I have an ebook telling other people exactly what they should do to do the same...What better? Another term for David Cameron?!

Are you trading anything at the moment?

Hell no! In fact, I'm not really looking anything at the moment apart from whether to go to Vegas or to South Africa - or both!

The fact is, there is nothing that fits my rules setting up in the market at the moment - and this has been the case since the first week of June. So, instead of fighting it, I am simply going to put the mouse on the ground and walk away from that computer screen.

In the moment, it is always easy to feel a sense of inadequacy if you have shelled out £1000s for a course or programme and you can't trade - even though you may feel it you are damn right entitled to do so as you've spent money learning.

Wrong! It is at times like this where you apply the skills from the education your money has bought you: to simply not trade for the sake of trading.

Trust me, you will save yourself time and money. Remember it is the net sum of all trades that makes you the money. For this quarter so far, I had nothing but wins in April, nothing but losses in May and a mixed June - all to equate to a 12.5% gain for the quarter thus far.

A 12.5% gain for the quarter may no seem like much but if this is a benchmark repeated 3 more times then it's a 50% gain on your capital. So with that in mind, I'm happy to do the following:

1) Enjoy the sun nose deep in a book (not on trading!!)
2) Continue my digital publishing (a very good income earner by the way)
3) Catch up with friends
4) Watch a Sacha Baron Cohen film
5) Go to the gym and swim
6) Develop my 'Bash the Bargie - Not the Pasty' anti VAT campaign

As I said, I'm not really looking at much. However, I'm interested in these levels:

NZDJPY: 6900
NZDCAD: 8391
DOW: 13286
GBPCAD: 16387

Let's hope these levels get hit in August.

Well done those of you who are still in GBPNZD :)

Trading results for this month bad? Try this

Although the financial gains can be extremely spectacular in end of day trading, so too can the drawdowns! Do you have what it takes? 

It took me a while to get my mental state attune to this reality but one thing that helped me immeasurably is not having daily, weekly or monthly targets. Instead, having a 'quarterly' bench mark, target or 'sum of all trades' served me better being more representative of whether the strategy deployed is actually profitable.

So next time someone comes up to me and says: 'I’ve made my 20 pips for the day'.... I'm simply going to turn round to them and ask them if that's what they do for 'fun', and then tell them to get a life, and to stop pestering me with such drivel, lol.

I have categorised both January and August as being historically my worst ever months in trading results so moving forwards, I shall just take the 'pink elephants' and that's it!

As for the here and now my results looks like this - big gains, sizeable drawdowns...however, higher highs and higher lows!

Time for Risk off

...And so we had a similar set up short on NZDUSD and EURJPY addition to a lovely high test bar on Euro Dollar with the all important lower high on the hourly. As Gold plummeted yesterday, this was a good precursor to AUD and NZD following suit throughout the night....and, in turn, the risk based currencies following their lead into the open in Europe... Risk based currencies are correlated after all...

Last night I had an order placed at break of the low on Kiwi and Euro short (with another order half way up the bar).

Those who are already in EUR and NZD short - enjoy the ride. 

An awesome film - Zeitgeist 2011- the little known truth behind life as we know it?

CHFJPY placed for a long?

Friday's low test bar off the psychologically strong 80.000 round number which intersects with a decent 'soft' level of support in addition to divergences makes this look like a tantalising 'buy' . As we have the makings of an inverse head and shoulders on the hourly, we can potentially place our order long half way up the bar for a '50 fibb' entry, with stop below the low, for extra reward to risk...double in fact! An entry long at the break of the high will ensure a safer entry, although the reward is not as decent.

Daily:

Hourly: