It's All About The Pips...

[danarm]

New York Open Notes - Thursday 19th March

Good afternoon all……………

Unemployment claims out in 15mins so be careful but seems to be gearing up for weak dollar already.
Most definitely looking like a change in sentiment is coming. Now USDJPY is trading in the opposite direction to EURUSD and GBPUSD to maybe crosses are to be left alone and perhaps we need to stick with $ related pairs until this trend changes

Can’t touch GBPJPY or EURJPY whilst charts are set as they are and leading pairs are behaving like so.

 

[Rollingstone]

Greenback falls off its perch

Hi All

Someone in Dan's room asked "what happened" yesterday...

DOLLAR SLIDES AFTER US FED PLAN

The dollar has fallen against all major currencies after the US Federal Reserve announced a plan to buy $1.2tn (£843bn) of debt to boost its economy.

The dollar fell by 4.2% against the euro and by 3.9% against the pound. The US currency also declined against the yen, the Norwegian krone, the Australian dollar and Brazilian real.

The Fed's decision to buy debt means it is effectively creating new money, leading to concern from investors about the over-supply of dollars.

Dollar rally ends

The dollar traded at $1.4543 against the pound, its lowest since late February. The US currency also had its biggest drop against the euro in over two months, to $1.3693 versus the 16-nation European currency. Against the yen, the dollar bought 94.10.

The decline in the dollar ended its rally so far this year, which has seen the US dollar rise by more than 2% against most major currencies.

The Fed said on Wednesday that it would buy long-term government debt and expand purchases of mortgage-related debt to help stimulate an economy in the midst of the worst economic crisis since the Great Depression.

It said it would buy up to $300bn worth of government debt, known as US Treasuries, over the next six months, as well as an additional $750bn of mortgage-backed securities to boost mortgage lending.

It also said it would buy debt issued by government-sponsored agencies such as Freddie Mac, which supports the mortgage market.

Market reaction

BBC economics editor Stephanie Flanders said the decision to buy Treasury bills came as a "shock" to investors.

"Why have this new spending spree at all?" she said. "The answer may be that the Fed - and the administration more generally - is concerned that the apparent improvement in credit conditions the past few months is a false dawn."

The surprise registered in the stock market, as the Dow Jones shares index jumped 90 points on Wednesday.

Following the Fed's announcement the yields payable to holders of government bonds also fell sharply. The yield on the benchmark 10-year Treasury note fell to 2.5% percent from 3.01% - its biggest one-day slide since the Wall Street crash of 1987.

The Bank of England has already begun buying government debt to expand money supply - known as quantitative easing - while Japan said on Wednesday it would step up its purchases of government debt.

HOW QUANTITATIVE EASING WORKS

• Central bank expands money supply by using newly created money to buy assets from banks and other financial institutions
  
• Aims to boost the economy by giving sellers of these assets money to spend on goods, services or more assets

BBC NEWS | Business | Dollar slides after US Fed plan

 

[danarm]

The London Open Notes - Friday 20th March


Today we concentrated on two solid breakouts in CABLE and EURUSD.

Many of you in the room today made between 80 and 100 pips. That is great trading and a great end to the week.

As mentioned it was worth looking at the 4hr chart as you could have shorted these two charts at yesterdays high. I am now short on both with tight 25 pip stops and seeing if Friday brings the retracements these markets need.

Really enjoying teaching you all and I feel I am slowly improving as a teacher. I am going to zone in on breakouts from Monday as most of you can trade these and make decent pips from them. I will talk you through the rolling stops so you feel confident with the risk.

See you all on Monday and happy piping!!!

Take care all…

Dan 

 

[danarm]

CABLE and EUR looking tasty...

Well done to you all.

Excellent day and lots of pips in the pip bank!

D

 

[danarm]

Well its been a very good end to the week...

I am all closed in EUR and CABLE and do not care if they fall further. The pips are safe!!!

Well done team...Some of you nailing 4 out 4 trades today.

See u monday at 6.30am.

Dan

 

[jel31]

Hi Dan

Still loving those CABLE breakouts... A few of those a week and I am a very happy bunny.

Thanks for all your words of wisdom and have a great rugby-tastic weekend. Wish I was in Cardiff, it's always a good crack when the Paddys come to town!

See you Monday

Julie

 

[danarm]

Hi Dan

Still loving those CABLE breakouts... A few of those a week and I am a very happy bunny.

Thanks for all your words of wisdom and have a great rugby-tastic weekend. Wish I was in Cardiff, it's always a good crack when the Paddys come to town!

See you Monday

Julie

Thanks Julie and well done to you.

I will be zoning in on breakouts each morning with levels and how to trade them with rolling stops.

Its going to be a lot of fun and yes we need to take a little more risk but as long as it is controlled we will do vvvvvvvvv well. Thats how i love to trade.

As you can now see (with days like this) 1000 pips a week is possible when you are controlled.

Keep up the good work and see you monday.

Dan

PS 3 games of rugby on sat and golf on sunday...Its amazing what 5 bunches of flowers can do!!!

 

[darkness123]

Thanks Julie and well done to you.

I will be zoning in on breakouts each morning with levels and how to trade them with rolling stops.

Its going to be a lot of fun and yes we need to take a little more risk but as long as it is controlled we will do vvvvvvvvv well. Thats how i love to trade.

As you can now see (with days like this) 1000 pips a week is possible when you are controlled.

Keep up the good work and see you monday.

Dan

PS 3 games of rugby on sat and golf on sunday...Its amazing what 5 bunches of flowers can do!!!

Great! looking forward to zoning in on breakouts and learning how to trade them with rolling stops.

Have a good weekend Dan!

 

[Rollingstone]

Worrying underwear

Hey Dan, hi all

I have just heard from a friend who has been learning to trade with some great results lately. The trouble is he is convinced his success is due to a magic pair of underpants which are given pride of place on the bedroom door handle and treated with reverence.

The thing is he has now asked me if I would like to wear them and is getting terribly excited waiting for an answer.

What should I do?

A) Say I will wear them and then secretly burn them when they arrive?

B) Try to get him to wear my pants instead?

C) Chain him to his bed, pack up all my stuff and move to an undisclosed address 300 miles away?

Decisions, decisions.

Have a great weekend all! C'mon England.

Looking forward to the rolling stops Dan - rolling stops, rollingstone, rolling around, all fine by me!

RS

 

[Rollingstone]

Trading Psychology

Hi Dan, hi all

Dan, I've just watched your Trading Psychology video sent to FX500Club members during the week which really is most excellent.

Having benefited from your teaching and wisdom for nearly a year now (and still learning) I have been along a very rocky road trying to find success and confidence.

As you said in your video, it's not about watching 10, 15 or 20 pairs across currencies, indices, metals etc and trying to catch every move, which is sort of what I was trying to do in my ignorance before I found you. You suggested I drop down to just GBPUSD and EURUSD to gain confidence and skill, which I did, and it worked big time. That was the key turning point for me.

I have now moved on and must confess I have a tiled screen with 8 pairs - 4 x USD and 4 x JPY BUT I only ever look for the best set-ups on the low spread pairs and if it's not there then, for me, it's not a trade. The main thing is that they are the same pairs, no skipping around. This works very well for me, personally. I'm not a big risk taker, I don't have pots of money, nor do I have bags of confidence which just goes to show that trading is possible for all types of people.

So thanks Dan for your patience, encouragement, for teaching me and above all giving me the courage to step out of my comfort zone to do something I never thought possible. Seeing lots of people joining the Club and learning from scratch makes me realise that I have come a long way but still have plenty to learn - I'm never complacent.

But most of all, as confirmed in your video, I know that the pips are consistently there with controlled and patient trading just by zoning in on a few key pairs and the set-ups I trust.

RS

 

[pbalfe08]

Trading Psychology

Hear Hear Rollingstone

I think we all have to realise that a lot of money can be wasted on HOLY GRAIL systems and then we can lose a lot of money trying to trade systems in the hope of gaining that elusive million.

You really have to take your hats off to Dan and the team, i started with them from day one and have never looked back, yes i have had my moments of desperation and elation, and yes i am not making pots of money and yes i dont have a lot of money in my trading account BUT i know that i will get better as a trader and i think we are all learning as well as Dan in his teaching.

I also looked at 8 pairs then slimmed it down to 6 pairs, but now i really think i am gonna slim it down to 2 pairs - US/JP & GB/US with GB/JP as a guide, maybe have a look at the EU/US if Dan mentions it but my main point of this post is to say that this is a long road to eventual success in the forex market for us all and we have to look at ourselves, like dan does, now and again and say to ourselves "are we learning, are we getting better, are we gaining confidence" and the answer surely has to be a resounding yes.

Dan and the guys have taught us so much already that i think its worth looking back and thinking how far we have all come, i just need to work on my confidence a lot as i do tend to suffer from the fear of pulling that trigger, but from Monday and i am going to say to myself when pulling the trigger, IF YOURE NOT IN THIS TRADE YOU ARE NOT GOING TO MAKE PIPS AND IF I LOSE THEN THATS ANOTHER LEARNING EXPERIENCE, i read somewhere that the secret to becoming a excellent trader is to LOVE YOUR LOSSES, i just could not understand why someone would sa that but thinking about, it really is a liberating thought and as long as you work within your money management then you can really understand what that sentence means.

Anyway signing off and i think i will start posting more regularly as i have footie and rugby to watch, and the answer to your dillema Rockdrive on the underpants is

See Ya

 

[Rollingstone]

Psychology corner

Hi pbalfe08

Welcome to the thread, I'm so glad you posted, it's always good to get feedback and keeps the thread alive too, which is great.

Yep, Dan and the boys are fab and not just great teachers but great company too. I love Dan's analogies with his Shetland ponies and wild stallions, lost puppies and smashing his bananas, never a dull moment.

And yes, you are right, everyone in the Club is doing really well. The best bit for me is that we are all treated as equals no matter what stage we are at, what stakes we are trading, male, female, or the colour of our skin - Dan takes care of us all.

I think the psychology is a huge hurdle, pulling that trigger can leave us all wobbling like jellies sometimes, but it's good to know Dan trod the same path and look at him now - er, a big, black, hairy gorilla, hmmm.

It is true though that it is only when you can accept you will have losses that you start to have wins and if you start on low stakes the losses aren't so scary. Anyway, my motto is: Statistically 100% of trades you never take never win.

So, it's slowly, slowly catcha monkey - I'm caught up with those monkey boys, and I love em to bits.

Enjoy the rugby and footy.

Erm, the pants dilemma - Rockdrive. Do you mean ask Rocky he would know? Good thinking, I'll send him an email, he wears a suit these days so he's bound to know. Or, do you mean that they are Rockdrive's pants - hee hee, that would be telling!

See ya

RS

 

[danarm]

Ahhh good to see the chat is alive and well. Will respond to you both later.

Come on England and come on Ireland!!!

Would be great for the Irish to win this Slam. Good luck to the men in Green!!!

D

 

[pbalfe08]

Rugby

Ahhh good to see the chat is alive and well. Will respond to you both later.

Come on England and come on Ireland!!!

Would be great for the Irish to win this Slam. Good luck to the men in Green!!!

D

Well what a thrilling afternoon of rugby, England retain the Calcutta Cup, whoooaa yes and Ireland do the Grand Slam, but didnt O'Gara's drop gola remind you of Wilko's drop goal in the World Cup Final, me being half irish and half english what a good day all:clap: round, but then again is'nt half the population half irish in anyway.

Well done to Ireland and England even though my main sport is football i do like a good game of international rugby

Paul

 

[Tenapenny]

Well done Ireland and England. Rollingstone, you seem to be doing ok with your own pants, but just to be sure, to be sure, if Ronan O'Gara's shorts come up on ebay, I would put a bid in if I were you. Would make a great avatar if they fit you.

 

[Rollingstone]

Great rugby, to be sure

Well, top of the marnin to you all

Fantastic rugby - great tries, drop goals, jangling nerves, knife edge scores, rippling pecs - it had it all. What a great finale to the Six Nations and congratulations Ireland on winning the slam. :clover: (Comiserations to Wales Julie, poor old Stephen Jones looked mortified ).

Tenapenny, being on the slim side I would probably fit into one leg hole of Ronan to be sure, to be sure O'Gara's shorts but it might beat wearing my friend's pants!

RS

 

[Tenapenny]

"....but it might beat wearing my friend's pants!" Sure, to be sure.

 

[jel31]

Ahhh, what a day! You can always rely on plenty of excitement during a Wales/Ireland clash in Cardiff. What a great advert for the game eh?

Oh well, it wouldn't have been right for us to win by 1 point when Ireland scored the tries, that's what I say. It would be reminiscent of that World Cup final...

So, well done Ireland, you deserved it. I must be one of the only people in Wales who doesn't have any Irish blood. I do have 2 Irish sisters-in-law though, so at least I can find solace in my brothers both having a bit of peace now, which has got to be good!

The big question now is: What are we going to talk about now the 6 Nations is over? Not charty trading stuff surely!

Have a great Sunday guys and girls, catch you bright and early tomorrow

Julie

 

[danarm]

Afternoon all

What a weekend and what a weekend to be Irish. Well done to the men in green and they deserve all their success this year!!!

As for England and the mighty men in white. I am now confident that we are moving forward in the right direction and with the right management.

Its a little bit like trading...A few steps forward and a couple of steps back but the main thing is we move forward.

Looking forward to tomorrow and really hope that we get a few solid breakout patterns to play off. We can have a very high success rate with breakouts as long as we manage stops well. Once your know where the levels are and I guide you with a rolling stop we will be flying.

I am starving for pips and yes friday was a good day but i want 5 of those in a row.

Lets get that Grand Slam of pips next week and make our 50 pips per day and smash that 250 pip target.

See you at 6.30am.

Dan

 

[combotrader]

Hello

Hi Dan and guys

Loving the thread. My own style is similar, altho the CCI are custom built and new to me. I use 20 ema`s on different TF`s as a mean reverting level along with s/r and pivots. To be honest, s/r and pivots are the mainstay of my system. Still looking to learn though - and this thread looks good for it.

Lets not loose the freshness this thread has. Understandably, a lot of the volume will move to the chat rooms - but this feels like TD`s thread when it first started, and I for one learnt to trust the charts more from reading that thread.
Anyone with differing views or aggro should just move somewhere else.

I have views on Crude / cable / gold this am, but will keep them to myself for the mo. Its Dan`s thread and I dont want to barge in.