Trading for an income? Try this

As most of you know, I trade for capital growth only as the currency markets give us the opportunity to make fantastic returns on our capital. Being in the opportunity flow end of day only gives us the opportunity to do this from as little as 20 minutes a day as opposed to being hunched over a screen trying to chase 'x' amount of pips for a 'daily target'! After all, you're reaping the best rewards Vs time spent in from of the screen compared to those poor intra-day traders.

What do daily targets do? Put you under undue duress to trade so that invariable, boredom, anger and frustration trades manifest themselves and all goes Pete Tong... I know...have been there.
 So I have my way of doing things – but also a tremendous amount of freetime!

So what the hell do I do for income? Automated trading, yes. But also non-performance based income streams are very important as they have uncorrelated returns...so that no matter what the markets are doing - you can still have a form of income from elsewhere.

 Being a freelance journo I discovered self digital publishing and realised than unlike before where I was getting paid per word...I could get paid for one piece of work TIME AND AGAIN. But this was not just confined to me - anyone could do this. It was a major breakthrough personally and, after much research and application, I am now sharing my method to people on how exactly they can gain decent, recurring income streams from quite literally writing about what they want, when they want and how they want. Even if they have never been published before: www.words2riches.com

Check this out and see how you can potentially turn your interests, vocation, profession or passions into recurring income streams... but you don’t have to. It’s just an idea for you to keep you away from the charts over-trading.

Is GBPNZD the great kahuna run of May?

Currently selling GBPNZD and in for the long haul. At least the interest rate differentials are making this a positive daily rollover...for a change!

The trade is based on a high test bar on daily timeframe rejecting the 2.1000 level (Nice big psychological number) in anticipation of the continuation of the prevalent 'phase 1', in pursuit of a lower low...

Am planning on keeping this trade open for as long as possible as the reward to risk is staggeringly good (10:1+)

A lot of people have come to me asking why I've taken it short (the high test bar on 23rd) given the apparent uptrend with higher lows on the daily. However, when I invited those people to look at the weekly, GBPNZD's main characteristic is 'complex retracement'. This is evident throughout the past 3 years:

The weekly has lower highs and lower lows in cyclicity but the retracement on the daily (reflected by higher lows and higher highs) is merely a retracement...

In 2010 - the retracement (from May - Aug) gave higher highs and higher lows on the daily and people were thinking it was now in an 'uptrend' but as we can see...it was merely serving as a complex retracement with higher highs and higher lows before the continuation of phase 1.

Same again from December 2010- March 2011
...and again from July 2011 - November 2011
.........and again from Feb 2012 - May this year.

So in short, look to the higher timeframes for context such as the weekly or monthly as, unlike the daily, they can tell you a far more accurate story.

GBPNZD - Weekly:

Time to sell USDCHF?

And so...looking at USDCHF, we have a low test bar closing into a lean and mean level of resistance. The 'brick wall' at 9581 may be a foreboding obstacle in the way of anyone long on this pair currently, however, the reward to risk for us bounce traders certainly stacks up for a short.

If today's Monday's daily bar takes out the low of Friday's bar then this will correlate with the break of the neckline of a double top on the hourly timeframe, coming into the level. Our order placed just below the low of Friday will ensure we will only get triggered into it if there is a convincing break of this hourly neckline/daily low.

Trading the break of the LOW of a LOW TEST coming into such a level is a 'good bet' as the buyers which originally caused the price action to low test no longer there to defend the level. Hurrah!!
 

Orders placed... now time to concentrate on other, more entertaining (albeit somewhat cringe worthy at times) income streams 

Daily: 

Hourly:

 

EURAUD headed for a sell?

After over two months of a complex retracement, it finally looks like EURAUD is due for a ride down. It is after all still in a very long term downward trend if you look on the weekly, just in case you thought for a second: '...but it's making higher highs and higher lows!!'.

It looks like price action has lost steam in its retracement on the shorter term timeframes and frankly, the 12933 level (previous support) has now been tested as resistance, thanks to Friday's high test. This is a characteristic which you will see in any market as pure technical set-ups come into play.

The low of Friday’s high test serves as a nice and efficient place to get short in anticipation of the break of the phase two retracement and continuation to a lower low...